Die German postal service wants to increase letter postage early next year due to increased costs. According to its own statements, the company submitted a corresponding application to the Federal Network Agency on Tuesday. “In view of the legitimate interests of our customers, it is not easy for us to increase prices,” argued Post Manager Nikola Hagleitner. However, in view of inflation, higher energy prices, the most recent wage agreement and an unexpectedly sharp drop in letter volumes, there is no way around it.
The Bonn company is not allowed to determine the postage itself. Instead, the network agency makes specifications as to how Swiss Post can turn the price screw. Normally this happens every three years. The current prices have been in effect since the beginning of 2022, when standard domestic letters rose from 80 to 85 cents. The current postage is scheduled to expire at the end of 2024.
Swiss Post wants more leeway for postage increases
Specifically, Swiss Post is applying for the revocation of the so-called price cap 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. For comparison: in the last year alone, general consumer prices rose by 6.9 percent. The company argued that the costs and volume developments assumed by the authorities did not occur.
It is not yet clear by what amount the prices will rise. Should there be a new approval procedure, the network agency would also determine the scope for increases.
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Post argues price increases with “fair wages” and market coverage
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.” As early as 2022, the Post & Parcel Germany division had made no contribution to the group’s dividend payment and would not can’t afford to do that this year either. The state-owned company also argues that the price for a standard letter is below the European average of 1.33 euros and also below the level in Poland, the Czech Republic, Slovakia or Romania.
As a so-called universal service provider, the 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, they must fulfill obligations regarding the branch network, mailbox accessibility and the speed of mail delivery.
According to Post, price increases have already been decided for certain products for private customers in the parcel sector and for business customers in the advertising mail sector. The private customer price for the ten-kilo package will rise from 9.49 to 10.49 euros on July 1st. The company points out that the prices of the subsidiary DHL will continue to be below the level of the competition.
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DPA / jg