Private individuals no longer write very many letters in Germany, but the regularly increasing postage is causing displeasure. At the beginning of 2022, Swiss Post last turned the price screw.
Consumers have to reckon with the fact that letter postage will become more expensive sooner than planned. Deutsche Post submitted a corresponding application to the Federal Network Agency on Tuesday. After a procedure by the authority, the company could be given leeway to increase the postage.
So far, it is planned to only allow an increase in January 2025. If the regulatory authority accepts the application, it could become more expensive as early as January 2024. The Post justified the step with extra costs that they had to bear in times of inflation. A higher letter postage is “absolutely necessary”.
Network agency must approve the postage increase
A spokesman for the network agency said that the application would be examined. “Should the facts presented be convincing in their content and meet the application requirements, the Federal Network Agency could initiate a new standard procedure ahead of time.” This procedure is the basis for the amount of postage.
Swiss Post is not allowed to raise the postage on its own, but has to have it approved by the network agency. As a “universal service provider”, the Post is the only company that has to deliver letters everywhere in Germany – not only in cities, where delivery costs are relatively low, but also in rural areas. In addition, she must fulfill obligations regarding the branch network, the availability of mailboxes and the speed at which letters are sent. In return for fulfilling these obligations, the federal government allows them prices that keep the mail business profitable.
Normally the postage increases every three years. At the beginning of 2022, a standard domestic letter went up by 5 cents to 85 cents and a postcard by 10 to 70 cents. Old stamps remain valid, but must also be stamped.
When the postage was last increased, the regulator granted the company a price increase of 4.6 percent for a period of three years – this value referred to the volume of all items of the various letter types. The calculations were made at a time when inflation was low and the economy did not have to cope with the consequences of the Ukraine war. For comparison: in the last year alone, general consumer prices rose by 6.9 percent. The post argues that the costs and volume developments assumed by the authority did not occur.
More expensive energy and higher wages
With the application from Tuesday, a lengthy procedure is initiated. It is unclear whether the postage will actually increase in January 2024 or later. It is also possible that the network agency will say no and the postage will remain the same until the end of 2024. However, Swiss Post only submits such an application after intensive calculations that include quantities, sales and costs. It is therefore considered unlikely that the regulator will slam the door in the face of the post office and not even start the process.
From the point of view of the Bonn group, a higher letter postage is overdue. “In view of the drastically increased costs due to inflation, higher energy prices and the very high collective bargaining agreement for 2023, as well as an unexpectedly sharp drop in letter volumes, there is no way around increasing postage,” said Post board member Nikola Hagleitner. Compared to other areas of the group – such as the express and freight divisions – the domestic letter and parcel business is weak.
The manager demanded that the company should be allowed “to earn the necessary financial resources for fair wages and to ensure a modern, nationwide postal service on the market”. She also pointed out that postage in other EU countries is higher than in Germany. Sending a standard letter in Poland, the Czech Republic, Slovakia or Romania costs more.
Regulated postage is only about letters that are dropped into mailboxes or delivered to branches – i.e. usually from private individuals and small companies. It’s not about the prices for business customers who send large quantities.
Postal law reform in progress
Reluctant reactions came from federal politics, which is working on a reform of the outdated postal law. The FDP member of the Bundestag, Reinhard Houben, called the Post’s step legitimate in view of the increased costs. “An important question for me, however, is whether the private end consumer is ultimately charged particularly heavily, while business customers receive lavish discounts and are only charged lightly.”
From the point of view of the SPD member of the Bundestag Sebastian Roloff, the process shows how important the reform of the postal law is “so that an affordable, nationwide and high-quality postal service can be guaranteed in the long term – with good working conditions and fair wages”.
“Wage pressure and inflation are not leaving Deutsche Post untouched either,” said CSU MP Hansjörg Durz. The postal application is therefore understandable. “For consumers, however, another rise in prices is on the horizon.” The opposition politician appealed to the federal government to stabilize postage prices. If postal obligations are relaxed and mailing takes longer, for example, the price must go down.
The Left Pascal Meiser sees the return claims of the postal service as a problem because the postage is being pushed up unnecessarily. The network agency should check very carefully whether a premature increase is necessary or can be averted.
Source: Stern
