Postcomm's statement of policy in relation to financial penalties

Postcomm has decided to revise its statement of policy in relation to financial penalties (‘statement of policy’).

Under the Postal Services Act 2000, Postcomm has the discretionary power to impose a financial penalty on a license holder that has contravened – or is contravening – one or more of its license conditions. Postcomm must prepare and publish a statement of policy, in relation to imposing a penalty and the amount of that penalty.

Postcomm published its current statement of policy in February 2002. Since then, Postcomm has imposed four financial penalties on Royal Mail and there have been a number of significant changes in the postal services market, including the full opening of the market in January 2006 and the adoption of a new price control for Royal Mail in April 2006. Postcomm said, at the time the statement of policy was introduced, that it would consider revising the statement in the light of experience in its application. Postcomm has decided that it should consult now on revising its statement of policy.