ACM restricts PostNL’s ability to increase prices in 2016

Intervention by the Netherlands Authority for Consumers and Markets (ACM) is set to reduce postal company PostNL’s ability to increase prices for 2016. Without the intervention, PostNL could have increased prices by a further 14%. The move concerns the prices for the delivery of individual letters and parcels. Henk Don, ACM board member: ‘We have looked carefully at the costs that PostNL actually incurs for the delivery of letters and parcels. ACM is strict in ensuring that consumers are not overcharged for their postage stamps.’

Allocating costs in a different way

In April 2015, ACM rejected a proposal made by PostNL. ACM took the view that the system did not comply with the rules of the Postal Regulation (Postregeling). In response, PostNL modified the system. ACM has accepted this new proposal and used it as a basis for setting the new price boundaries. Henk Don: ‘The number of letters being sent by post continues to fall. If this trend persists, PostNL may be given greater freedom to increase prices in the future.’

Less room for price increases

PostNL is permitted to increase prices in 2016, but less than it could previously. There are two reasons why PostNL is now more restricted in its ability to increase prices. One of these is a change to the way in which PostNL allocates costs. Another is that the calculations are now based on a different accounting year than the original proposals: 2014 instead of 2013. This makes a difference, because costs were significantly lower in 2014 than they were in 2013. In October, ACM will announce its judgement on the prices PostNL proposes for 2016.