Royal Mail responds to Ofcom’s regulation proposals

Royal Mail has responded to Ofcom’s proposals outlined in its “Review of the Regulation of Royal Mail” document published yesterday (25 May).

In an official statement sent to Post&Parcel, the post operator said: “Royal Mail welcomes Ofcom’s finding, as part of its Review of the Regulation of Royal Mail, that customer satisfaction with postal services and value for money is high.

“Ofcom also notes that, following price increases introduced in 2011-12 and 2012-13 in order to return to profitability, our price increases have been broadly in line with RPI.

“In relation to efficiency, Royal Mail has a stretching efficiency programme in place and is targeting to avoid around £500 million of annualised costs by 2017-18.

“Ofcom’s review also demonstrates that there is strong competition in the access market.”

Royal Mail added that it will “actively participate” in the consultation process – and this will include providing a “detailed, evidence-based submission” to Ofcom.

As previously reported, Ofcom said yesterday that its review had found that the “universal postal service is financially sustainable” and its also announced that “given the declining letters market, and increased competition in parcels” it is not proposing to impose new price controls on Royal Mail’s wholesale or retail products.

Ofcom’s Review has been made publicly available so stakeholders and interested parties can comment on its proposals. The consultation period will close on 3 August 2016 and Ofcom expects to publish a statement on its final decisions later this year.