GUERNSEY POST is being given more freedom to set its own prices.

The Office of Utility Regulation said the move would give the utility more commercial flexibility and the ability to change its prices to remain competitive in an increasingly difficult market.

The regulator is moving away from the system of capping individual tariffs to one where limits are set on the revenue received from a group of goods and services.

This will give Guernsey Post the ability to change individual prices to react to market conditions without asking for permission from the regulator.