Guernsey Post has announced that from 1st May 2012 it will be increasing the cost of both its local and UK tariffs.
Taking into account the significant number of challenges facing the company, the OUR have accepted Guernsey Post's proposal to increase the cost of its local and UK rates from 36p to 39p and from 47p to 53p respectively.
Boley Smillie, Chief Executive said:"Whilst it is regrettable that we have to announce price increases, we do believe that they are justified considering the significant challenges facing our business. We are also very confident that our prices will remain competitive in comparison with the UK and Europe."
The loss of LVCR is a significant contributory factor to the tariff increases.
"To put the price increase into perspective, the loss of LVCR will reduce our profit by £3.7m over the next twelve months. The tariff increases announced today will reduce that impact by less than £500k, with the remainder offset by efficiencies achieved within the business," continued Mr Smillie.
Other important factors necessitating the need for Guernsey Post to change its postal tariff include further increases in charges from Royal Mail and the continuing decline in standard mail volumes.
For customers wishing to find out more information, the full tariff is available to download on this website.