Postage pegged for three years

Tuesday 25th September 2007, 12:00AM BST.

JERSEY Post have been ordered to peg any price increases for stamps to below the inflation rate for the next three years.

The ruling by the Jersey Competition Regulatory Authority means that postage rates will be effectively frozen next year, and must be limited to inflation minus 1.8 per cent in 2009 and 2010. The watchdog says that Jersey Post’s prices are not subject to enough competition. Under the Postal Services (Jersey) Law 2004, the JCRA is responsible for ensuring that Islanders get the postal services they need at affordable prices. The authority says that for many services, competition does the work of keeping prices down. But in some areas such as postage, there is only scope for a monopoly service provider.

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