Royal Mail's 'green' postal service clears first hurdle

LONDON - Royal Mail's proposal to launch a discounted postal service for mail that is environmentally-friendly has passed its first test, with postal regulator Postcomm proposing that it be allowed to charge less for mail that passes certain green criteria.

The carrier plans to launch its Sustainable Mail service in April to tie in with the DM industry's recently launched environmental standard PAS 2020, which advocates certain types of paper, glues and processes to make direct mail more eco-friendly.

Mailers will get a discount of 0.3p per item for mail that meets PAS 2020's entry level criteria and 0.7p per item for those who meet the standard's intermediate level criteria.

But first Royal Mail had to apply to Postcomm for flexibility on the price control obligations specified in Condition 21 of its licence, which sets down the prices Royal Mail is able to charge.

The regulator is inviting comments on this proposal, with rival operators such as TNT Post able to submit their opinion. The consultation ends on 2 March 2009 with a decision due at the end of that month.

Postcomm is proposing that Condition 21 should be modified to enable Royal Mail to provide Sustainable Mail that would "maintain a minimum level of headroom, as determined by the existing Condition 21, between the equivalent Sustainable Mail access products and the Sustainable Mail retail products".

 

 

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