Sending letters is becoming more expensive: the Monopolies Commission sharply criticizes the increase in postage

At the turn of the year, letter postage will increase more than ever before. Does it have to be that way? A panel of experts in Bonn has a clear opinion on this: No, that really doesn't have to be the case.

The old 95 cent stamp on a standard letter remains valid, but the shipment must be additionally franked if the postage is increased. Photo: Bernd Weißbrod/dpa

Bonn. The planned increase in letter postage is rejected by the Monopolies Commission. Postage should not increase so much, said the chairman of the federal government's advisory committee, Tomaso Duso. “The Federal Network Agency recognizes too many of Deutsche Post’s costs as so-called burdens - the result is excessive postage.”

This would allow Deutsche Post to co-finance other business areas to the detriment of competition, complains the economics professor and recommends that the Federal Network Agency examine these burdens more closely. “It should be ensured that customers only carry necessary loads.” This would not endanger postal services in rural areas.

The Federal Network Agency would like to allow the postal service to increase its letter postage by around a fifth - inflation has never been so high. The post office is now planning to increase the price of sending a standard letter domestically by 20 cents to 1.15 euros at the turn of the year. The postage for postcards, compact, large and maxi letters is also expected to increase significantly.

When calculating letter postage, the post office may include certain costs - also known as charges. The more charges can be claimed, the higher the postage will be released by the Federal Network Agency. According to the Monopolies Commission's assessment, the regulatory authority should take a closer look and remove certain burdens, which would mean that the postage would not be so high.

The volume of letters decreases and decreases

In the digital age, the volume of letters is falling sharply because people and companies are relying more and more on digital communication, whether by email or chat message. Therefore, the so-called unit costs increase - the transport and delivery of a letter becomes more expensive because the costs for staff, infrastructure and energy are spread over fewer shipments. The postal service is not allowed to increase postage independently; rather, it is dependent on the approval of the regulatory authority, the Federal Network Agency. A final approval of the letter postage valid for 2027 and 2028 is still pending.

Deutsche Post is by far the market leader in the mail market, while its smaller competitors have a difficult time. In the parcel segment, DHL, to which Deutsche Post belongs, is not as big as in the mail sector.