The Federal Network Agency has preliminarily decided that the German Post should be permitted to raise mail rates by an average of approximately 20 percent in the coming year. Specifically, the standard letter, currently priced at 95 cents, would see an increase to 1.14 euros. For private customers, package prices are planned to be increased by somewhat more than 10 percent.
The Federal Network Agency communicated on Monday that post offices have the entrepreneurial freedom to decide how they utilize the pricing latitude for specific products, meaning that some items may see larger increases while others experience smaller ones.
Commentary from the German Post, competing carriers, and consumer protection groups can be given until the end of October regarding the planned margin for price hikes. The final decision within the “Price Cap Measurement Procedure” is expected to be published in November. Following this, the new postage prices will need to be approved in a subsequent tariff procedure and are scheduled to take effect starting January 1, 2027, for a period of two years, until December 31, 2028.
The primary justification for the size of this pricing window is the significant decline in mail volumes. These lower volumes are attributed to advancing digitalization, such as the increased shift of communication onto digital channels by companies, administrative bodies, and consumers, as well as the mandatory introduction of electronic invoicing for companies starting in 2028. Decreased send volumes inevitably lead to rising per-unit costs.
