Postal Regulation – Ofcom Announcement, 16th June

Postal Regulation – Ofcom Announcement, 16th June 

As you may have seen in the media, Ofcom has today announced that it is conducting a fundamental review of the way it regulates Royal Mail in the wake of Whistl’s withdrawal from the letter delivery market last week.

 

While Ofcom has presented this in its press release as part of its work to secure the universal service, the focus of this review will be looking at whether Royal Mail should have less commercial freedom – and should now be subject to price controls – and how Ofcom can ensure that it becomes more efficient.

 

Given Ofcom’s stance on the postal market and its efforts to promote competition, it is not a surprise to us that it is looking to restrict Royal Mail and put pressure on it over efficiency following Whistl’s announcement.

 

Ofcom has said that it will publish its initial proposals and consult on these in July, with a view to introducing a new regulatory framework in 2016. The CWU will be responding to this consultation and we will update branches about how today’s announcement fits in with our campaign on regulation and Ofcom’s approach to the postal market at the briefing at the TUC on 19th June.

 

Any queries about the contents of this LTB should be addressed to the GS Department.

 

Yours sincerely,

 

 

 

 

Ray Ellis ​Dave Ward ​

Acting Deputy General Secretary (P)​General Secretary