Tag: Guernsey Post

Guernsey Post and its watchdog will consult again on proposed changes to its operating licence. The Office of Utility Regulation now suggests scrapping and replacing condition 18, which contains the clauses that specify the conditions for price regulation. ‘The OUR’s aim with this proposed modification is to clarify further the services intended to be regulated under condition 18 of Guernsey Post’s licence,’ said director-general John Curran. The OUR’s initial attempt to regulate prices of postal services through its licence – as distinct to regulation law and postal law – was appealed by the company in October 2004. This is ongoing. Behind the appeal was Guernsey Post’s concern that it would lead to regulation of prices in competitive markets, where it believes it is entitled to a level playing field. However, the OUR argues that the October modification was ‘a tidying-up exercise’ and that there would be no increase in the watchdog’s powers.

Managing director Mike Hall said that the commercialised utility expected to record another loss this year. And postal charges are likely to increase again within 18 months. The company last week revealed that it turned a £1.6m. profit in its first year of freedom from States control into a loss of more than £800,000 in the year to the end of September 2003. But Mr Hall said that the utility, which was battling against rising costs passed on from the Royal Mail, should break even in 2005.