In the context of Australia Post’s (AP’s) draft letter price notification, the Australian Competition and Consumer Commission (ACCC) has commissioned WIK-Consult to prepare two studies.
The first study reviews AP’s cost allocation model (CAM) and offers an assessment of the appropriateness of the allocation of costs between reserved and non-reserved services. The study includes recommendations for improving the CAM, and changes that will become necessary with the introduction of two-speed letter services (regular vs. priority).
The second report assesses AP’s current program to modernize its letter service operations in response to declining letter mail volumes (RoLS / Reform our Letter Service). The projected efficiency improvements of the RoLS program and their feasibility were assessed against the benchmark of five European postal operators.
ACCC has published its view on AP’s draft price notification and the executive summaries of WIK-Consult’s studies for download on its website.