Royal Mail cleared to increase bulk mail prices

Royal Mail will be clear to increase the price it charges business customers and rivals for delivering bulk mail.

Royal Mail

Under plans unveiled by mail regulator Postcomm, Royal Mail could charge up to 15% more. Proposals are subject to consultation.

Royal Mail last week called for a change to the current regulatory regime that it claims is “suffocating” attempts to increase revenue.

Under the current system, it claims, rivals are able to collect bulk mail from companies and then get Royal Mail to deliver over the so-called “final mile” for a discount price.

Royal Mail loses on average 2.5p on each item of bulk mail under the current regulatory rules, it says.

The company cited this and falling mail volumes for the £66m loss its letters division posted in the first six months of the year.

Moya Greene, Royal Mail Group’s chief executive officer, says: “The current regulatory framework is just not right and what is now proposed goes someway in the right direction.

“With mail volumes falling rapidly and set to decline further as competition from electronic communications and rival postal operators intensifies, it’s essential the current regulatory constraints on Royal Mail are eased to allow it to compete fairly in the bulk business mail, and packet and parcel markets, where competition is extremely robust and growing,” she adds.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here