German postal service Deutsche Post is not allowed to increase the price of letter postage prematurely, the Federal Network Agency regulator said in Bonn on Monday.
The company had submitted a letter in May asking for approval to increase their prices in 2024 - one year earlier than planned.
Deutsche Post justified its application by pointing to higher costs, for example for personnel and energy. After examining the proposal, however, the regulatory authority announced that the postal service had not provided sufficient evidence of the cost increases.
The head of the Federal Network Agency, Klaus Müller, pointed out that the company was making a profit in the letter sector.
The company, which trades as the DHL Group and only operates as Deutsche Post on a national level, can appeal the decision.
The price of postage usually increases every three years. In 2012, a standard domestic letter cost 55 cents; today it is 85 cents. The last increase was in January 2022 by 5 cents.
Other types of mail have also became more expensive.
To change prices of postage, Deutsche Post is dependent on the approval of the Federal Network Agency, the country's regulatory office for electricity, gas, telecommunications, post and the railway.
