Postcomm welcomes Government review of postal market (UK)

Postcomm, the independent regulator for postal services, welcomes the Government’s review of the UK postal services market, which was announced earlier today.

Postcomm looks forward to cooperating fully with the review which comes at a time of profound change for the market. The regulator’s official submission to the review will be published in due course, but is likely to consider:

– how to put Royal Mail in the best position to increase its efficiency and its flexibility to meet the changing needs of customers and to sustain a universal service which must evolve in the light of social and technological changes;
– how to ensure that new operators are able to offer customers a choice of innovative new services, on a level playing field with Royal Mail (including the same treatment under the VAT regime); and
– the need to allow the regulatory regime to evolve with the changing market and for Postcomm to step back wherever the market is effective in ensuring value for money and choice for customers.

Postcomm chairman Nigel Stapleton said:

“The introduction of competition and choice has brought direct benefits to business customers, and social customers have benefited from the boost to service reliability prompted by competition and regulation. But the impact of alternative media and other market changes is bringing new challenges.

“This review is timely in considering, not only the effects of competition between mail operators, but also competition from email, the internet and other media. Postcomm itself is in the middle of a high-level review of our regulatory strategy which is looking at all aspects of the regulated postal services market.

“We are pleased the Government’s review will cover all aspects of the market and of Royal Mail’s structure and performance. The forward looking approach can ensure the public continues to benefit from an evolving universal service it values and the market develops to provide innovative, efficient and reliable services that meet the needs of all users.”