Year: 2005

In a landmark Judgment the High Court has found in favour of the postal watchdog, Postwatch, against the economic regulator, Postcomm. This is the first time a Consumer Council has successfully Judicially Reviewed an industry regulator. Millie Banerjee, Chair of Postwatch, commenting on the High Court’s decision said: “We are, of course, delighted the Judgment is in our favour. This is an important outcome ensuring Royal Mail’s customers receive the GBP40 million of withheld compensation they were due for service failures in 2003/04. Customers have been patient but hopefully can now see light at the end of what has been a long legal tunnel. One of our first challenges is to put in place the processes that will ensure Postwatch and Postcomm work jointly to achieve the right outcomes for customers. Royal Mail now needs to deliver what the Court has decided and pay in full the compensation due to customers.”

Thousands of Royal Mail customers who have received poor service could be in line for new compensation payments following a High Court ruling today. The Consumer Council for Postal Services, known as Postwatch, won a legal challenge against Postcomm, the UK postal regulatory body. The case arose after Postcomm refused last January to order the Royal Mail, which has already paid out some GBP35 million, to pay another GBP35 million to users of bulk mail services which were not up to standard. Postcomm declined to make an enforcement order under the 2000 Postal Services Act for the financial year 2003-4. Postwatch argued that Postcomm was under a statutory duty to enforce. Today, Mr Justice Sullivan, sitting at the High Court in London, ruled in favour of Postwatch but gave Postcomm and Royal Mail time to consider appealing to the Court of Appeal.