Postcomm prepares to hand off UK postal regulatory powers

Postal delivery companies in the UK are set to become “regulated” operators rather than “licensed” operators from next month. Postcomm, the country’s postal regulator, is transferring its powers to the communications industry regulator, Ofcom, following adoption of postal reform legislation by Parliament this summer that should lead ultimately to the privatisation of Royal Mail.

Responsibility shifts from Postcomm to Ofcom from October 1, 2011.

Postcomm said today that the licensing regime for postal operators in the UK’s liberalised postal marketplace is being replaced with a general authorisation regime.

It has launched a consultation on minor changes for the Postal Common Operational Procedures Agreement that forms the basis of the current licensing regime, ahead of the transference of regulatory powers.

The changes being made are little more than an update on the 2006 PCOPA document, changing the terminology to remove references to licensed operators, and setting up Ofcom’s position to police postal operators, with powers to expel those who do not comply with regulatory requirements.

“Minor”

Tim Brown, Postcomm chief executive said the changes being made were mainly those set out in the Ofcom postal consultation issued earlier this month, which closes to industry responses September 9.

“The two other changes identified by the request are to update the reference to the Companies Act in the definition of ‘Affiliate’ and update the name and address of Royal Mail in the definition,” said Brown, adding that a number of other minor changes were being made to reflect the Ofcom proposals.

The Postcomm consultation is open to comments until September 28.

As laid out in the Ofcom consultation, the regulator is to take responsibility to designate one or more postal operators as universal service providers from October 1.

In the current circumstances, the universal service provider will continue to be Royal Mail, which will be required to provide single-piece mail services to every home in the UK with postal rates regulated by Ofcom. Bulk mail has been removed from the definition of the universal service obligation in the UK.

Other postal operators will be authorised by Ofcom to provide postal services from next month.