TNT Post has confirmed earlier reports that it has been awarded a two-year contract to handle around 170 million mail items for Centrica, the leading supplier of energy in the UK.

Under the deal, which is estimated to be worth over E35 million (GBP23 million) annually, TNT Post will handle around 120 million transactional mail items a year and around 50 million direct marketing items.

Centrica’s transactional mail is generated at its print and mail centers in Northampton and Manchester. Centrica will principally be benefiting from TNT Post’s Premier Service, a two day, time-definite service for pre-sorted mail, with Royal Mail continuing to carry out the final mile delivery to customers’ homes nationwide.

The service offers both Centrica and its customers flexible pick up times, use of tracking systems that enable improved visibility and management, and a reliable two-day service, according to the company.

Nick Wells, CEO of TNT Post UK, said: This is another impressive win in the utility sector for us. We are proud to be working with Centrica and we look forward to a long and successful partnership with them. The utility market is fiercely competitive and Centrica is looking to put itself ahead of the game by choosing a postal supplier that will bring tangible benefits both to its business and its customers. Our advanced technology and premium services offer Centrica a more efficient and cost effective mailing solution, keeping costs to a minimum.

TNT Post already supplies postal services for a number of companies in the utility sector, including npower and Thames Water.