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Royal Mail announces plans to charge rural areas more for bulk mail
Royal Mail has applied to charge higher prices for delivery of bulk mail to rural destinations. Royal Mail calls this ‘zonal pricing’ and Postcomm has up to nine months to assess whether, and if so when, this new pricing structure can be implemented. Postcomm, the independent regulator for postal services, has written to customers and operators about an application by Royal Mail to charge large mailers using products which are not part of the Universal Service Obligation (USO) different prices depending on where in the UK their mail is delivered.
Nigel Stapleton, Postcomm chairman, said: "Postcomm will study with great care Royal Mail’s request to charge large customers different prices depending on where mail is delivered in the UK. Although these business tariffs are outside the ‘one price goes anywhere’ guarantee of the Universal Service, customers are entitled to understand Royal Mail’s justification and have their say on its plans to charge more for delivery in Greater London and rural areas. In highly populated areas outside London, Royal Mail proposes to reduce prices."
"Postcomm’s recent consultation on the concept of varying business tariffs by destination identified that most major mailers did not want it and some might consider reducing their usage of mail as a result. Despite this, Royal Mail is keen to pursue ‘zonal pricing’, so we hope all mail users will give us their feedback during our consultation in order to inform decisions required from both Royal Mail and us."
In its application to Postcomm, Royal Mail has divided its 27 million delivery points around the UK into five zones. These are Greater London, other areas of high population and delivery point density, areas of moderate density and rural areas of low population and delivery point density. The proposals would mean that low density rural areas pay 4.8% more compared to 4.9% less in high density business districts.
Further information on zonal pricing
- Source
- Rural Gateway
- Date
- 3-Apr-2007
- Categories
- COMMUNITIES, ENTERPRISE, LOCAL SERVICES, All Scotland, News - General
6-Apr-2007 @ 10:09AM
Lloyd Gudgeon
Does "delivery of bulk mail" mean all that unsolicited junk that comes through the letter box? if so, i'd like the Post Office to make it even more expensive to deliver it. As long as rural collections and individual deliveries don't go up in price.
3-Apr-2007 @ 20:52PM
Chris Ferne
I'm interested to see that Postcomm would like our feedback on this issue - particularly as their web site offers no facility for such action! This is yet another scheme to disadvantage rural communities in the cause of profit, leading inevitably to further rural depopulation and increasing urban sprawl. The implications of this scheme, if not stopped, are so wide as to demand the intervention of central government, not just Postcomm.
Rural life : Zonal life?
6-Apr-2007 @ 20:30PM
Phil Olson
We're used to petrol wholesalers zoning our fuel prices up and up. Delivery firms surcharge us. The GPO now wants a trojan steed to zone price bulk mail implying all our mail will eventually cost more.
Next? Asda/Tesco/Morrisons agree on zonal differentiation.