The cost of posting a local letter will rise by a penny to 35p and a letter to the UK by 2p to 39p if Jersey Post’s proposed increases are approved by the Island’s competition regulator.
The charge for posting heavier letters, parcels, redirections, special deliveries and having a PO Pox number will also go up from 1 April if the Jersey Competition Regulatory Authority accept the price proposals.
The lucrative direct mail order, or fulfilment, industry will also face a hike, although the extent of the rise will depend on the weight, size and number of items posted.
The main reason for the proposed increases is a big rise in what Jersey Post must pay Royal Mail to handle and deliver items in the UK.
For many years the amount of Jersey mail delivered in the UK was roughly the same as the amount of UK mail delivered in Jersey so the two services simply called it quits.
But the success of Jersey’s VAT-exempt fulfilment industry has tipped the balance and Royal Mail now wants Jersey Post to pay its share.
The bill sent by Royal Mail to Jersey Post for handling letters is expected to rise by 18 per cent and 27 per cent for packages over the next two years.
