Postcomm is to look into changes to the Royal Mail's price control.

Consumers who use the Royal Mail for their parcel delivery needs may have to pay more in the future after the postal regulator announced plans to review the price control which currently binds the service.

Postcomm will examine proposals to alter the control, which is a regulatory tool designed to protect the public when there is not enough competition in the marketplace, for the period from April 2010 to March 2011.

The mechanism ensures the Royal Mail cannot raise prices to an unreasonable level or let the quality of its services drop, but the regulator says that it needs to be re-examined, which could lead to consumers paying more for their parcel delivery needs.

"These proposals are a response to significant changes in the postal market that were not foreseen by both Royal Mail and Postcomm when the price control was set in 2006," Postcomm said.

In other news, various businesspeople recently told the BBC that some firms may face closure if the current Royal Mail strikes continue, as they are unable to get their goods to customers or deliver bills.

Written by Sarah Gower


Article Added: 29/09/2009 16:35:26