Tag: Europe

Royal Mail could be broken up in one of the biggest shake-ups in its 300-year history, under plans being considered by the industry regulator. The Times has learnt that Postcomm is considering whether customers would be better served by splitting Royal Mail into two or more parts. A break-up would separate its big mail centres and delivery activities from the Post Office branch network and other retail operations. Postcomm is calculating the benefits of a split and aims to consult consumers, industry and Royal Mail itself in the new year. The regulator is concerned that Royal Mail is charging rivals too much to use its infrastructure, which is hampering competition in the postal market. It also wants more transparency in Royal Mail’s functions. The plans are being discussed as Royal Mail is braced for the opening of competition throughout the postal market in January.

Postcomm is to announce its long-awaited verdict on Royal Mail’s pricing in proportion (PIP) scheme within the next two weeks. The regulator has told interested parties to expect an imminent decision on the controversial scheme, ending months of speculation about the timing of its launch. A deadline was never formally set, but had been mooted for the beginning of August. The industry is eager to know whether PIP will be introduced alongside new price controls next April.