Royal Mail wins back £150m BG

Royal Mail has won back the £150m mailing contract for British Gas, its biggest gain since Ofcom allowed the postal operator to significantly hike its prices last year.
The contract to collect, sort and deliver statement mail on behalf of the energy giant was described by Royal Mail as by far the largest win since the new regulatory framework was introduced last April – allowing it to push up business mail rates by 11%.
Royal Mail snatched the business back in a competitive bidding process from TNT Post UK, which had held the contract since 2007.
The deal is expected to begin in spring 2013, delivering statements to about 12 million households. It has also secured a five-year contract to deliver Smart Meters to British Gas engineers, while an existing express delivery contract, sending spare parts to British Gas maintenance engineers overnight, has also been extended to 2018.
Royal Mail chief customer officer Mike Newnham said: “In a competitive postal market, Royal Mail’s reputation, competitiveness and strength of account management were instrumental in securing this contract win.”
British Gas managing director of procurement and supply chain Rob Morton said the company had set Royal Mail “challenging objectives” in the new contracts. “British Gas is pleased to award these contracts to Royal Mail. We both care passionately about providing excellent customer service, and have worked together for many years.”
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