Postcomm has announced Royal Mail will maintain its current control over prices for a further year to 2011.

The Royal Mail is set to regain control over its pricing until 2011 at least, according to the industry regulator.

Postcomm has announced that it will make no changes to its current price control arrangements, which will initially see Royal Mail retain control until March 2010 as previously agreed.

The organisation and Ofcom also recommended that an additional two-year interim arrangement should be introduced, as the current postal services bill continues to progress through parliament.

Ofcom is set to take over the regulatory responsibility for Royal Mail in 2010 and claims it will need "up to two years" to decide on the new regime that it wants to introduce.

The regulator said: "Given these circumstances, Postcomm has, therefore, concluded that the best way forward is to maintain the current price control which is capable of operating for a further year to April 2011 unchanged."

Postcomm recently launched an investigation into the methods Royal Mail uses to price its wholesale and retail packets services for business in the UK.

The Mail Competition Forum and TNT Post Group had submitted complaints that a "margin squeeze" had been occurring on 2nd class packet services.


Article Added: 17/04/2009 09:28:01