The Jersey Competition Regulatory Authority (JCRA) has agreed that Jersey Post may increase stamp prices in 2012.
The existing price control on Jersey Post ended in December and the JCRA had proposed a one-year extension. The decision follows a 28 day consultation which has now closed.
The proposal to allow Jersey Post to raise prices follows the announcement by the UK Treasury that it is to remove Low Value Consignment Relief (LVCR) for imports to the UK from the Channel Islands from 1 April 2012.
The JCRA, which alongside the Office of Utility Regulation is part of the Channel Islands Competition and Regulatory Authorities (CICRA), is currently reviewing Jersey’s postal sector for the Economic Development Department and will examine measures that the regulator can take to help support the fulfilment industry in Jersey and support Jersey Post in providing the universal service.
John Curran, executive director of the JCRA and head of CICRA, said: “The threat to the island’s fulfilment industry is of great concern and while we have always believed that the ordinary postal service should be self-sustaining, we recognise that the short time frame within which the rules on LVCR will change presents a major challenge to Jersey Post.
“We need to ensure that Jersey Post can provide the universal service, which it is required to do under the Postal Services Law, and we believe this can be done through a combination of price changes and further efficiency savings from Jersey Post,” added Mr Curran.
The ultimate decision as to whether stamp prices will increase (and if so, by what amount) will be taken by Jersey Post during the year.