Victory for PPA as price control battle rages on

The PPA has claimed a partial victory in its battle with Postcomm over price controls for magazine delivery service Presstream.

Postal regulator Postcomm is to keep the first-class system, Presstream 1, within price controls for a further four years. It follows the PPA's claim that it had "damming new evidence" to rubbish Postcomm's justification for ending the controls.

"There were many representations made to us and we listened to what people had to say," said a Postcomm spokesman. "We had a lot of feedback from publishers with time-sensitive magazines and we felt it was sensible to leave Presstream 1 in price control."

"This is clearly very good news for time-sensitive magazines such as weekly titles that rely on Presstream 1 to reach the market," said PPA chief executive Ian Locks (pictured). "It is gratifying that Postcomm has listened to PPA's representations to this extent."

But Locks added that he was concerned that Postcomm would remove all price and service controls from Presstream 2. The PPA argues that competition to the entire Presstream service was not developed sufficiently to justify removal of price controls.

"Presstream 2 has been left outside because we feel there is protection and there would be no way Royal Mail would raise the price," said the Postcomm spokesman. "There is protection for customers. We have an agreement with Royal Mail that means we can take disciplinary action if their pricing is unfair."

The association claimed the evidence it presented "proved" there was a lack of competition with Royal Mail to provide a universal service due to the limited reach of alternative operators.