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19 February 2011 | Lindsay Clark
UK regulator Postcomm
has cleared the way for the Royal Mail to increase the cost of its bulk mail
As one of the UK’s largest suppliers, Royal
Mail’s pricing affects the majority of the nation’s companies.
This week, Postcomm confirmed its decision
to accept Royal Mail’s request to allow it to increase prices on bulk mail to help
maintain the modernisation programme within the public postal service. The
regulator said it would also give Royal Mail greater commercial freedom in
markets where competition is growing.
“We acknowledge the impact that such price
rises are likely to have on customers and the risk that this may result in a further
decline in mail volumes,” PostComm said.
However, it said that the report into
postal regulation by Richard Hooper, published in December 2008 and updated in September 2010,
“clearly identified that the universal postal service will remain under serious
threat if Royal Mail fails to modernise and tackle its long standing
When Royal Mail first requested Postcomm
approval for its price changes in November last year, the Federation of Small Businesses, said any
rise would punish Royal Mail’s customers. “It will put up their costs which
they can’t pass on to [their] customers,” a FSB spokesman said.