UK Post watchdog risks uproar over regulatory ‘light touch’
Postcomm is risking the wrath of Royal Mail by pledging to treat new entrants to the postal market with a regulatory ‘light touch’.
The move, outlined in the watchdog’s corporate strategy for the next three years, is designed to free them from unnecessary regulation. A Postcomm spokeswoman says that it is doing what is necessary to prevent abuse of the system, rather than for its own sake. She explains: “In a fully competitive market, regulation is not necessary, as weaker players will be edged out.”
She adds that Postcomm is concerned with ensuring mail redirection works smoothly, and that undelivered post goes back into the right part of the system, even where there are a number of competitors.
A ruling on bulk mail services is expected in the spring.
Postcomm has previously taken steps to turn one of Royal Mail’s bulk mailing services into a ‘universal service’, whereby a uniform price would have to be charged nationwide.
Royal Mail believes the measures are unfair. Chief executive Adam Crozier says: “Business bulk mail services should not be part of the universal service obligation. These are among the most profitable postal services, and it’s where major competitors will be focused.
“Royal Mail believes in open-market competition, provided it has the same pricing flexibility as its big competitors.”
