An Post has sought a 14.5 per cent increase in the price of a stamp to bring the cost of posting a letter from 48 cent to 55 cent.
Comreg, the communications regulator, confirmed today it will open a public consultation process following An Post's application for the price hike.
In its application to Comreg, An Post said the rate for a standard stamp had not increased since August 2003. The company wants the increase from March 1 st, 2007.
The postal service intends to submit a full application on its prices next year, for implementation in January 2008, it said.
Small-business lobby group Isme condemned An Post's decision to apply for an increase. Isme said the price rise it would mark another significant hike in business costs on top of other increases in areas such as labour, energy and transport.
Isme chief executive Mark Fielding said: "An Post, instead of being granted price increases, should instead be forced to address the underlying problems in their business, including restructuring their cost base and eliminating management inefficiencies.
"They cannot continuously be granted price increases, which only serve to mask the underlying problems that exist within the company."
Mr Fielding called on Comreg to "carefully consider not only the impact on competitive business but the fact that An Post have consistently failed to get its act together with regard to their own internal efficiencies".
"An Post should ensure that their organisation is run on a competitive and profitable basis and not to continuously keep returning with the begging bowl to the wider business community."