Search

Royal Mail delivers again for British Gas

British Gas

Royal Mail has won back from rival TNT Post a major letters delivery contract with British Gasfor collecting, sorting and delivering its statement mail to its customers with effect from spring

this year.

The UK postal operator stressed that this is “by far the largest major business mail contract toreturn to Royal Mail since the new regulatory framework was introduced by Ofcom last year”. Thecompany won the contract through a competitive tender.

TNT Post UK secured the prestigious British Gas contract, worth millions of pounds, six yearsago. According to UK media, Royal Mail lost an estimated £150 million worth of business at the timewhen British Gas and British Telecom switched 340 million letters to 40 million customers away fromthe state-owned postal operator.

In addition, Royal Mail said it has also been awarded a five-year contract to deliver SmartMeters to British Gas engineers across the UK. Smart Meters is an innovative and advanced utilitymeter that records energy, water or gas usage of businesses or consumers in real time.

Moreover, Royal Mail has won an extension of its other contract for the overnight delivery ofservice and repair parts to British Gas engineers enabling them to carry out next-day maintenance.It has been extended by a further five years.

Mike Newnham, Royal Mail’s Chief Customer Officer, said: “Royal Mail is delighted to have won acompetitive tendering process to collect, sort and deliver British Gas’s statement mail. In acompetitive postal market, Royal Mail’s reputation, competitiveness and strength of accountmanagement were instrumental in securing this contract win.”

Rob Morton, British Gas’s Managing Director Procurement & Supply Chain, added: “British Gasare pleased to award these contracts to Royal Mail. We both care passionately about providingexcellent customer service, and have worked together for many years. We’ve set Royal Mailchallenging objectives to ensure our customers get the best service and value, and look forward toworking with them in the coming years.”

© 2025 CEP Research copyright all rights reserved.