Financial Times FT.com

Regulator rejects Royal Mail costs plea

By Jean Eaglesham, Chief Political Correspondent

Published: February 27 2007 18:29 | Last updated: February 27 2007 18:29

The Royal Mail became embroiled in a row with its regulator on Tuesday, after the postal operator was accused of “using an attack” on price controls as a “smokescreen” for its own failure to control costs.

Postcomm reacted furiously to Royal Mail’s call for a radical relaxation of regulatory controls, including an end to the cross-subsidisation by business users of stamped mail, on which the operator loses 6p an item.

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