article_snippet: Royal Mail has been accused by MPs of using Royal Mail universal service commitment as an excuse to raise stamp prices.
article_snippet: Citizens Advice Bureau also urged Royal Mail to ‘focus on making efficiency savings rather than relying upon raising prices’ and expressed concern that consumers were held to ransom because consumers ‘have no choice but to pay the increased prices’.
article_snippet: Royal Mail has warned Royal Mail faces aggressive competition in the parcels market from delivery firm Whistl and called for regulators to rein in Royal Mail rivals.
article_snippet: Royal Mail says Royal Mail is at a disadvantage to competitors because Royal Mail must fulfil a 175-year-old ‘universal service’ obligation to deliver to all UK addresses for the same price.
article_snippet: Royal Mail said this obligation, which requires it to deliver six days a week to even the most rural communities, could soon become ‘financially unsustainable’ if Ofcom does not impose restrictions on Ofcom rivals.
article_snippet: Royal Mail should not increase postal and packaging prices simply in an attempt either to increase Royal Mail own profit levels or to protect the Universal Service Obligation, without increasing the efficiency of Royal Mail operations.
article_snippet: Royal Mail says this expensive obligation is becoming increasingly difficult to fulfil because firms such as Whistl
article_snippet: ‘cherry pick’ deliveries in more lucrative city locations and can therefore under-cut ’ deliveries in more lucrative city locations on price.
article_snippet: But when asked for evidence that it cost more to deliver in certain geographical areas, Royal Mail was apparently unable to provide this.
article_snippet: Bailey felt Royal Mail should be trying to make efficiencies instead of raising prices .
article_snippet: The report said: ‘Royal Mail were concerned to note that Royal Mail were unable to provide a regional breakdown of the cost of the Universal Service Obligation.
article_snippet: ‘Royal Mail also surprised to learn that there is no consensus between Royal Mail and Ofcom over what constitutes to cost, revenues and profits of the universal service.
article_snippet: ‘given the rapidly changing postal sector market’.
article_snippet: Last year, Business Secretary Vince Cable said Royal Mail should stop ‘whinging’ about Business Secretary Vince Cable obligation to deliver to all parts of the country and accused Business Secretary Vince Cable of ‘scaremongering’ by claiming Business Secretary Vince Cable future was in jeopardy.
highlights_snippet: Some claim Royal Mail is looking to loyal customers to prop business up .
  