International postal price regulationUSPS OIG publishes WIK review of international trends in postal price regulation, and draws conclusions for price regulation in the USA
The USPS Office of Inspector General has commissioned WIK to review trends in postal price regulation in Australia, Canada, France, Germany, and the UK.
Our report finds that in all countries but Canada, postal operators were given more commercial freedom to respond more flexibly to changing market conditions. The scope of regulated postal products was generally reduced.
Price cap systems with flexible X-factors that are reviewed by regulators periodically have proven to be effective regulatory instruments. Regulators have lately set negative X-factors and thus approved price increases above the rate of inflation, reflecting increasing unit costs.