German regulator gives Deutsche Post scope to hike letter prices

Germany's Regulator Permits Deutsche Post to Increase Letter Prices Substantially

Regulatory Approval and Proposed Price Increases

Background and Rationale

Oct 12 (Reuters) - Germany's regulator said on Monday that DHL's Deutsche Post may increase letter prices, given a sharp decline in the volume of letters, and offered its proposal for postage rate increases.

Details of the Proposed Increases

• Deutsche Post may increase letter prices by 20.35% and prices for private customer parcels by 10.72%, the Federal Network Agency said.

Regulator's Considerations

• The agency said it has remained below Deutsche Post's requested adjustments and has not taken into account rising value-added and overhead costs claimed by the company.

• It said the new rates are intended to apply in the years 2027 and 2028.

Stakeholder Feedback and Next Steps

• Deutsche Post, competitors, consumer protection organisations and other interested parties may submit comments on the proposed decision by October 30.

• The final decision is expected to be published in November.

Reporting Credits

(Reporting by Tom Kaeckenhoff, writing by Linda Pasquini, editing by Thomas Seythal)