Postal regulator wants couriers to register

The postal regulator has released draft regulations compelling all operators in the postal sector, including courier companies, to register, while reenforcing a cap on price increases for the SA Post Office.

The regulations, which emanate from the 1998 Postal Services Act, will help enforce the SA Post Office’s monopoly over all postal items weighing less than 1kg, which has long been flouted by other operators. An inspectorate is to be established to ensure the monopoly is adhered to and fines administered.
The regulations could, however, raise the ire of courier companies, which have long viewed the move towards registration with suspicion and have complained about the extent of the SA Post Office’s monopoly.

Mikie Kutta, acting chief director of the postal regulator, said yesterday that registration was an attempt to get a better understanding of the market and to implement a control mechanism.

“The Post Office has universal service obligations such as delivering addresses and building unprofitable post offices. Its monopoly must be protected.”

Kutta said many couriers had in the past been unaware that the SA Post Office’s monopoly included parcels of up to 1kg. Input from industry players on the regulations would be sought during a countrywide roadshow, which starts next week.

In terms of the price cap, postal tariffs may not increase by more than the consumer price index or by 12 whichever is the lower. This year, tariffs rose about 9% against a requested increase of 12% to 15%.