Ofcom Royal Mail

Ofcom announces proposals for regulation of Royal Mail

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By Stephen Lepitak, -

October 20, 2011 | 2 min read

Proposal aiming to ensure that a universally-priced and affordable postal service is maintain on a six-day week has been published by Ofcom.

The proposals would see more freedom handled to Royal Mail in how its sets its prices and introduces safeguards to ensure the protection of consumers as well as competition, while also improving efficiency.

The proposals aims to ensure that Royal Mail is financially sustainable and able to deliver the Universal Service Obligation that requires the organisation to collect and deliver letters six days a week across the UK.

It has been recommended that Royal Mail is given the freedom to set its own prices for the majority of products including first and second class deliveries, standard parcels and bulk mail.

A cap on the price of second class stands between 45p and 55p have been proposed as well as the monitoring of the performance of Royal Mail.

Royal Mail would also be expected to continue to provide network access to competitors should new proposals be implements also.

Stuart McIntosh, group director of competition commented: "The universal postal service - which ensures that letters are delivered to every address in the UK six days a week - is significant and highly-valued by the public. However, unless changes are made to the regulation of post, this service is under threat.

"Ofcom's proposals are designed to safeguard the UK's postal service, ensuring it is sustainable, affordable and high-quality, to the end of the decade and beyond."

A consultation process is now underway over the proposals and will close on 5 January 2012.

Ofcom Royal Mail

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