Postcomm consults on new European Postal Services Directive

Postcomm today began consulting on how the recently agreed European
Directive on postal services should be implemented in the UK and, in particular
its impact on the UK licensing regime.
The Directive reduces the part of the postal market that can be reserved to
national monopoly postal operators from 350 grams to post weighing less than
100g from 1 January 2003 and 50g from 1 January 2006.
In the UK under the Postal Services Act 2000, Postcomm licences all operators
providing postal services for mail weighing less than 350g or costing less than
£1. In the light of the new Directive, the Secretary of State for Trade and Industry
has asked Postcomm to advise on how best to implement the Directive and, in
particular, whether the UK’s licensed area should be reduced in step with the
new weight thresholds, or whether it should stay at the present 350g.
In the document Postcomm says it favours leaving the upper limit for the
licensed area at 350g, but with ‘light touch’ regulation consistent with the
Directive, for postal operators conveying mail between 100g and 350g next year
and between 50g and 350g from 2006. This means that there would be no
restrictions on the nature of services to be provided within these weight limits.
Postcomm points out that mail up to 350g accounts for virtually the whole of the
UK letters market. Retaining licensing at this level would mean that postal
operators would be subject to a common set of regulatory requirements which
would be applied fairly and uniformly to virtually all market participants. This
would best safeguard the universal service and benefit postal users.
Notes for Editors
The Postal Services Directive 2002/39/EC was adopted on 8 May 2002 and
introduced on 10 June 2002. The Directive amends Directive 97/67/EC with
regard to the further opening of competition in Community postal services.
Member States are required to implement the Directive by 1 January 2003.
The Secretary of State for Trade and Industry is responsible for implementing the
new Directive in the UK but as the Directive affects the regulatory regime under
which Postcomm operates, she has asked Postcomm to carry out the necessary
consultations and to provide her with advice on how best to implement the
Directive’s provisions.
Postcomm has identified four options for implementation, all of which would
require some amendment to the existing statutory regime. Although the UK
licensing limit is currently the same as the reserved services limit, there is no
need for them to be the same. The Directive enables Member States to issue
individual licences for “non-reserved services” provided these fall within the
scope of the universal service. A number of other Member States have set up
licensing regimes.
In addition to the weight limits there are corresponding monetary limits
calculated by reference to the price of the basic weight step of the fastest
category of the universal postal service (in the UK this taken as first class post).
In the UK the monetary limit is currently £1 and under the Directive this reduces
to 3 times on 1 January 2003 and 2.5 times on 1 January 2006. The document
proposes that these limits in the UK should be 80p and 65p respectively.
The Directive will also require other – relatively minor — changes to the
regulatory regime which Postcomm proposes should be achieved mainly by
making small changes to the licence issued in March 2001 to Consignia plc, the
provider of the UK’s universal postal service.
The text of the consultation document, Implementation of the European
Directive on Postal Services in the UK, can be found on Postcomm’s website
www.postcomm.gov.uk. Copies are also available from Postcomm at 6 Hercules
Road, London SE1 7DB. Responses are requested by 31 October 2002.
Postcomm – the Postal Services Commission – is an independent regulator. It has been
set up to further the interests of users of postal services. Postcomm’s other main tasks are
to:

 Seek to ensure a universal postal service at an affordable uniform tariff

 Encourage competition in postal services

 License postal operators

 Control Consignia’s prices and quality of service

 Give advice to Government on the future of the post office network.
Postcomm’s policies are steered by a board of seven commissioners, headed by the
chairman, Graham Corbett CBE.
More information: Chris Webb Tel 020 7593 2114
Mobile 07779 635881
E [email protected].
or [email protected]
Jonathan Rooper Tel 020 7766 1210
Pager 07693 352732
E [email protected]
ENDS