Consignia's application for a price increase

11 April 2001

Postcomm has received a request from the Royal Mail for increases in a wide range of postage rates, including a penny on first and second class post. This request is made under the provisions of the licence we recently issued to Consignia.

Postcomm will examine this application carefully and critically and consult with Postwatch, the Consumer Council for Postal Services. When applying for any price increase, Consignia must demonstrate that without it there is a significant risk to the company’s ability to finance its licensed activities. It must also demonstrate that no other course is appropriate, for example by improving efficiency.

Postcomm will only allow the price increase if it is satisfied that Consignia has made the case for price increases in accordance with the criteria in its licence on the basis of comprehensive and reliable information. We will if necessary go out to formal consultation to seek views from all interested parties before deciding whether or not to allow the whole or part of the price increases, and their timing.

Notes for Editors

Consignia is licensed by Postcomm to provide a universal postal service throughout the UK. Among other things, Consignia’s licence imposes controls on the prices Consignia can charge for most of its products.

The licence allows the company to ask for a price rise, which Postcomm is bound to consider.