Royal Mail faces 5% refunds to bulk mail clients

Postcomm has issued the first details of compensation under new rules to refund Royal Mail’s bulk mail customers.

Royal Mail has been asked to pay back up to 5 per cent of income from companies affected when it failed to attain service targets last year. The move could cost it millions of pounds in refunds to frequent mailers, such as financial companies.

The postal operator has agreed to the compensation levels, which should be repaid by the end of August, according to Postcomm’s website.

The scheme was set up by Postcomm last year as part of the postal regulator’s system of monitoring Royal Mail’s quality of service.

Compensation levels are capped at 5 per cent.

The regulator says compensation relates to the difference between Royal Mail’s service level achievements and those in its contract.