Postcomm allows changes to two of UK Royal Mails services

Following consultation, Postcomm on 21 October issued an approval under Royal Mail’s licence to enable the company to make changes to two of its services – Special Delivery and Standard Parcels. The changes will enable Royal Mail to integrate Special Delivery into its proposed single daily delivery, and allow it to withdraw from the service of carrying heavier parcels.

The changes are as follows:

Special Delivery

This service provides proof of posting and captures a signature on delivery. Royal Mail charges £3.75 to deliver a package weighing up to 100g the next day. The changes will allow Royal Mail an extra three hours for delivery, will double the maximum compensation payable for the standard fee if mail is lost or damaged, and introduce a charge if a copy signature is required. In detail, the changes allow Royal Mail to:

• move the time of delivery after which the fee is returned for non-delivery from 12 noon to 3pm. This will align with Royal Mail’s planned move to a single daily delivery

• increase the standard level of compensation that can be claimed for loss or damage from £250 to £500

• introduce a charge of £2.20 for providing customers with a copy of the signature obtained when the item was delivered.

The changes to Special Delivery will be introduced with three months notice during the year beginning 1 April 2004.

Standard Parcel Service

Royal Mail’s Standard Parcel Service currently delivers parcels weighing up to 30kg anywhere in the UK within three to five working days. The price varies from £3.32 for parcels up to 1kg to £10.76 for parcels weighing between 10kg and 30kg. Royal Mail is obliged by law to provide a universal parcel service up to 20kg.

Royal Mail wants to withdraw its service for the carriage of heavier parcels weighing between 20kg and 30kg. Postcomm has agreed to this providing the change is delayed for five months and Royal Mail adequately publicises the change.

The withdrawal of the service for heavier parcels will take place on 1 April 2004.

Notes

Parcels weighing more than 20 kg generally need two people to carry them –typically an under-worktop kitchen refrigerator would fall within this weight limit. The change will enable Royal Mail to withdraw the service, the price of which is subsidised by other mail users. This ruling does not affect Parcelforce services. Royal Mail estimates that it handles 45,000 of these parcels in a year.

The proposed changes are detailed in an approval under conditions 4 and 19 of Royal Mail’s licence, which is published today on Postcomm’s website, www.postcomm.gov.uk. Printed copies will be available shortly from Postcomm at 6 Hercules Road, London SE1 7DB.

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 main tasks are to:

• Seek to ensure a universal postal service at an affordable uniform tariff
• Further the interests of users wherever appropriate through competition
• License postal operators
• Control Royal Mail’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.