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Marketing Ofcom Royal Mail

Ofcom wraps up Royal Mail review ruling that it continue as norm for next five years


By John Glenday | Reporter

March 1, 2017 | 2 min read

Ofcom has declared that Royal Mail should continue to operate under its existing rules for the next five years after concluding a review of its regulation by deciding to keep existing postal rules in place over the period.

The steady as she goes approach is born out of an improved performance since Ofcom introduced the rules as well as research indicating that customers are largely satisfied with the service they receive at present.

As such there will be no imposition of additional price controls with Ofcom confident that strong commercial incentives will keep these in check.

Jonathan Oxley, Ofcom competition director, said: "We know people value the universal postal service and we will continue to ensure that it remains effective. Our review has shown that current rules are generally working well for companies and households.

"Royal Mail still has room to improve. So we'll keep a very close eye on all aspects of the company's performance, and step in if we need to protect consumers from high prices."

As postal regulator Ofcom is required to secure the UK’s universal postal service, which guarantees delivery to any address, six days a week, at a standard price. This system has come under pressure in recent years however as people send fewer letters, leading to a £100m loss in 2011.

This prompted the introduction of a new set of rules and safeguards in 2012 which capped second class stamp prices while also handing greater commercial freedom to the Royal Mail.

The UK government sold off its stake in Royal Mail back in 2015.

Marketing Ofcom Royal Mail

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