More competition will be introduced into Guernsey's Postal Sector from April.

Guernsey Post will only be allowed to have a monopoly on items costing up to a pound. The OUR expects UK companies like City Mail to operate in the island soon. UK stamps are also set to rise by 2 pence.

John Curran from the Office of Utility Regulation told channelonline.tv: "I'm hoping from a customers point of view and from the bulk mailers point of view it results in them getting better prices and some variety in differentiation terms of the products they receive that's the key issue for us."

The Communication Workers Union has responded to the OUR's final decision with the following statement:

"The Communication Workers Union (Guernsey Branch) views with alarm the final decision taken by the Director General of the OUR with regard to the opening up of the Guernsey postal market to competition.

The lowering of the reserved sector to £1.00 and the complete freeing up of the packet market, which he intends to do in the Bailiwick, using the same model that has been used to decimate the service provided by Royal Mail to the UK public, will have a disastrous and irrecoverable effect on the local service. The decision to allow outside competitors to come into the Island and cherry pick the profitable parts of the postal market, can only result in a deterioration of the service that we provide with increased cost to the people of Guernsey.

The CWU does not intend to sit idly by whilst the jobs of our members and the services that we provide to the people of Guernsey are destroyed, and we call upon the deputies of the Island to act to curb this wanton destruction of an essential service."