Postcomm today sought views on proposals which aim to clarify precisely which services make up the universal service in the UK and how they should be provided by Royal Mail.
In the short term, users – and particularly domestic users -- should not expect to see much change. This is because Royal Mail would still be required to continue all of its current services unless it seeks and gains Postcomm’s prior approval, following consultation with Postwatch, the consumer body. Such services would also still be subject to price and service quality controls. But the proposals would mean that in years to come, as competition develops and in response to users’ views, Royal Mail would gain some flexibility in the way it develops its product portfolio.
The four main proposals are:
A weight limit of 2 kilos for priority and non-priority mail services. This proposal would have two effects. First, at present there is a 750 gram limit for 2nd class post which Royal Mail would have to raise to 2 kilos. Second, 1st class post would remain a universal service up to 2 kilos, but Royal Mail would still be required to continue to provide it above 2 kilos.
Bulk mail services. Postcomm proposes that Royal Mail should continue to provide bulk mail services as part of the universal service. This would be through three products -- Cleanmail, Mailsort 120, and Mailsort 1400. This proposal means that there will be three levels of bulk mail service available to customers on a universal service basis.
Excluded from the universal service would be an economy mail service (Royal Mail’s Mailsort 3), and a specialised newspaper service (Presstream).
Add-on services. These relate to the security of the mail and would ensure that Redirection, Keepsafe and Certificate of posting services are provided as part of the universal service. But services such as
Recorded-signed for and Poste-restante would not be universal, although they would still be provided.
Graham Corbett, Chairman of Postcomm said:
“Postcomm takes the view that the universal service in the UK should provide a range of postal services that meet a variety of customer needs – social as well as commercial. Our proposals reflect the views expressed by users in the first part of the review, published last April. It is now up to them to say how the services should be defined and how they should be provided by Royal Mail.
“Following this consultation, we will issue a definitive statement so that users know what to expect from the universal service and what to expect from Royal Mail.”
Notes for editors
Postcomm launched a review of the universal postal service in April 2003 when it asked users for the first time to say what they want from the universal service.
The UK universal postal service guarantees one delivery and one collection a day throughout the UK at a uniform, affordable price, and a registered/insured service. This minimum is guaranteed by UK law. Until now it was assumed that the universal service applied to everything Royal Mail does.
This consultation aims to clarify the universal service in the UK by identifying the individual services and, in turn, how these should be provided by Royal Mail. If agreed, in summary the services provided by Royal Mail through its current range of products would be as follows:
Priority and non-priority mail services (letters and packets) up to 2 kilos – by Royal Mail’s 1st and 2nd class mail services via stamps, franking etc and through a bulk mail service provided by Cleanmail, Mailsort 120 and Mailsort 1400.
A non-priority parcels service up to 20 kilos – Royal Mail’s standard parcel service;
A secure service up to 10 kilos – Royal Mail’s Special Delivery (next day) product;
Add-on services – Royal Mail’s Re-direction, Keepsafe and Certificate of posting and International outbound service – Royal Mail’s Airmail public tariff, International surface public tariff and International Signed-for products.
The consultation ends on 19 February 2004. In the light of responses, Postcomm plans to issue a definitive statement in spring 2004.
The consultation document, Review of the universal postal service: Postcomm’s proposals, is published today on Postcomm’s website, www.postcomm.gov.uk. Bound copies will be available shortly from Postcomm at 6 Hercules Road, London SE1 7DB.
Postcomm – the Postal Services Commission – is an independent regulator. It has been set up to further the interests of users of postal services. Postcomm’s main tasks are to:
Seek to ensure a universal postal service at an affordable uniform tariff
Further the interests of users wherever appropriate through competition
License postal operators Control Royal Mail’s prices and quality of service
Give advice to government on the future of the post office network.
Postcomm’s policies are steered by a board of seven commissioners, headed by the chairman, Graham Corbett CBE.
