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Swiss Post plans to increase letter postage ahead of schedule in 2024

2023-05-16T06:39:01.014Z

Highlights: Deutsche Post wants to increase letter postage early next year due to increased costs. The company submitted a corresponding application to the Federal Network Agency on Tuesday. The current prices have been in place since the beginning of 2022, when the domestic standard letter rose in price from 80 to 85 cents. The scope for price increases between 2022 and 2024 is a total of 4.6 percent, according to the company.. The price of a standard letter is below the European average price of 1.33 euros.



The logo of Deutsche Post. © Jens Kalaene/dpa/Archivbild

When the current letter postage of 85 cents was set, inflation was comparatively low. In the meantime, there are significantly higher energy costs and wages. Swiss Post therefore wants to increase prices earlier than agreed.

Bonn - Deutsche Post wants to increase letter postage early next year due to increased costs. According to the company, it submitted a corresponding application to the Federal Network Agency on Tuesday. "An increase in prices is not easy for us in view of the legitimate interests of our customers," argued Post manager Nikola Hagleitner. However, in view of inflation, higher energy prices, the latest collective bargaining agreement and unexpectedly sharp declines in letter volumes, there is no way around this.

The Bonn-based company is not allowed to set the postage itself. Instead, the network agency makes specifications on how the post office may turn the price screw. Usually this happens every three years. The current prices have been in place since the beginning of 2022, when the domestic standard letter rose in price from 80 to 85 cents. The current postage is scheduled to expire at the end of 2024.

Specifically, Swiss Post is requesting the revocation of the so-called price cap measure decision, on the basis of which the letter prices were approved. It was set at a time when inflation was comparatively low. The scope for price increases between 2022 and 2024 is a total of 4.6 percent. By comparison, general consumer prices rose by 6.9 percent last year alone. The company argued that the costs and volume developments assumed by the authority did not occur in this way.

It is still unclear by what amount prices will rise. Should there be a new approval procedure, the network agency would also determine the scope for increases.

Hagleitner said: "We should be allowed to earn the necessary financial resources for fair wages and to ensure a modern, nationwide postal service on the market." Already in 2022, the Post & Parcel Germany division did not make a contribution to the Group's dividend payment and will not be able to do so this year either. The state-owned company also argues that the price of a standard letter is below the European average price of 1.33 euros and also below the level in Poland, the Czech Republic, Slovakia or Romania.

As a so-called universal service provider, Swiss Post is the only company that has to deliver letters everywhere in Germany - not only in cities where delivery costs are relatively low, but also in rural areas. In addition, it must fulfil obligations regarding the branch network, mailbox accessibility and the speed of letter dispatch.

According to Swiss Post, price increases have already been decided for certain products for private customers in the parcel sector and for business customers in the case of advertising mail. For example, the private customer price for the ten-kilo package will rise from 1.9 to 49.10 euros on 49 July. The company points out that the prices of the subsidiary DHL will continue to be below the level of the competition. Dpa

Source: merkur

All news articles on 2023-05-16

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