British Gas goes back to Royal Mail

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Royal Mail has won back the British Gas contract to collect, sort and deliver statements to customers – the largest major business mail contract to return to Royal Mail since a new regulatory framework was introduced by Ofcom last year.

In 2007, Royal Mail lost the contract, then valued at £23m a year, to TNT Post.

The contract, won through a competitive tender, is expected to begin in spring 2013.

Royal Mail has also been awarded a five-year contract to deliver Smart Meters to British Gas engineers across the UK.

In addition, Royal Mail’s contract for the overnight delivery of service and repair parts to British Gas engineers to enable them to carry out next-day maintenance has been extended for a further five years to 2018.

Rob Morton, British Gas’s managing director procurement and supply chain, said: “British Gas are pleased to award these contracts to Royal Mail. We both care passionately about providing excellent customer service, and have worked together for many years. We’ve set Royal Mail challenging objectives to ensure our customers get the best service and value, and look forward to working with them in the coming years.”

Mike Newnham, Royal Mail’s chief customer officer, said: “In a competitive postal market, Royal Mail’s reputation, competitiveness and strength of account management were instrumental in securing this contract win.”

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