Guernsey Post's latest pricing proposal to freeze local and UK rate mail at 36p & 45p respectively have now been agreed with the OUR. The agreement also sees a price freeze for Bailiwick & UK Large Letters (under 100g) and introduces further price reductions for Guernsey businesses.
Some necessary price increases have also been approved with the OUR; including an increase to Packet tariffs which will more accurately reflect the cost of providing these services.
Bulk Mail customers will also benefit from Guernsey Post's new tariff; with the prices for the majority of bulk mail being frozen or reduced.
Boley Smillie, Guernsey Post Chief Executive said:
"I am pleased that the OUR has agreed with our Tariff submission. We have committed to making cost savings of £3m over the next three years and these have been reinvested in the form of price reductions".
These prices are intended for the period from 1st April 2011 - 31st March 2012. For the following two years Guernsey Post has proposed a more commercial approach to pricing and is pleased that this has been accepted by the OUR.
Since submitting the agreed tariff proposals Postcomm has indicated that it will be allowing Royal Mail to significantly increase its prices.
Following this Royal Mail had already announced that the price of a first class stamp in the UK will be increasing by approximately 12% from April 2011.
These increases are likely to have a knock-on effect on Royal Mail charges to Guernsey Post but the extent and timing of these is not yet clear.
Boley Smillie said:
"We are currently negotiating with Royal Mail to reduce the potential impact that their price increases may have on Bailiwick customers. We have agreed with the OUR that we should proceed with our proposed tariff changes to allow our customers to take advantage of the new tariffs and revisit these later in the year once we know what the new Royal Mail prices are."