Postcomm today published the timetable that it expects to follow for its review of Royal Mail’s price control and service standards. This will be Postcomm’s second major review of Royal Mail’s licence terms, and the decisions from this review are expected to take effect in April 2006.
Views are being sought from interested parties about the process and timetable that Postcomm intends to follow, as well the main issues that should be considered during the review.
The decisions taken by Postcomm at the end of this process will impact considerably on the future shape of the UK market. The timetable therefore envisages four consultations, each of three months, to ensure that the decisions taken by Postcomm take full account of the views of interested parties.
Nigel Stapleton, chairman of Postcomm said:
“April 2006 may seem a long way off, but it is really important that we make a start now on our review of Royal Mail’s prices and service standards. This will give us the time needed to work effectively with Royal Mail, Postwatch and other stakeholders to develop a framework that promotes efficiency and protects the interests of those many customers who don’t yet have effective choice in the market.
“In parallel with the review, Postcomm will also look at the development of competition in the UK postal market. This will inform an assessment of whether and how far Postcomm is able to relax its controls over Royal Mail’s prices and service quality.
“We very much hope all interested parties will let us know what they think. We want them to engage with us throughout this process, not just at the end. A price control review is always a key event. This one is especially important because it will affect the postal market well beyond the planned full liberalisation in 2007.”
The review will include a fundamental reassessment of the nature of Royal Mail’s service quality targets to make sure they reflect what is important to customers.
Postcomm envisages, in its timetable published today, that consultation documents will be issued setting out:
- Timetable and process (this document)
- Key issues to be considered during the review (September 2004)
- Initial proposals (April 2005); and
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Final proposals (October 2005).
Postcomm will hold customer/industry meetings during the consultation periods for the key issues and initial proposals, to allow interested representatives to discuss price control issues and proposals and to make their views known to Postcomm.
Notes for editors
The review takes place during a period of significant developments in the postal market. In the UK, the second stage of market opening will take place in April 2005, while in Europe, in 2006, the EU threshold for the reserved area will fall from 100g to 50g.
The review will need to take account of Royal Mail’s recent access agreement with UK Mail Ltd, progress with the Royal Mail renewal plan and Royal Mail’s proposal to introduce size-based pricing.
Today’s document, 2006 Royal Mail Price and Service Quality Review: Consultation about Process, Timetable and Main Issues, is published on Postcomm’s website, www.postcomm.gov.uk/. Printed copies are available from Postcomm at 6 Hercules Road, London SE1P 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, Nigel Stapleton.
