Tag: Postwatch

UK post service rivals reach surprise pact

Royal Mail and Business Post shocked the postal regulator yesterday by agreeing to an eleventh hour deal on access pricing. The companies, which have been wrangling for nearly two years over how much Business Post must pay to access the so-called “final mile” of Royal Mail’s delivery network, announced they had signed heads of terms on the issue. However, the details of the deal are likely to remain confidential until January. The news came as a surprise to Graham Corbett, the outgoing chairman of postal regulator Postcomm. He had been due to publish a decision on access pricing tomorrow, after the two companies had asked the regulator to mediate on the issue. “This is like being on the courtroom steps,” he said. “They have suddenly found themselves thinking that they don’t want a deal imposed on them by a judge or a regulator.”

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Postwatch comment on UK Mail and Royal Mail agreement

Peter Carr, chairman of postal watchdog Postwatch, said: “It is good news that UK Mail and Royal Mail have reached an outline agreement – we hope that this will result in a full agreement by the end of January. “However, the regulator was due to announce a decision in just two days’ time and this would set a standard for other companies wishing to compete in the UK postal market.
It is important that Postcomm publishes this information as planned so that other operators can proceed now to make decisions on market entry. More than one competitor is needed to provide choice to customers.”

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Postcomm asks Royal Mail to work with Postwatch to improve communications with Mailsort customers

Postcomm has asked Royal Mail to communicate more effectively with customers of its Mailsort business service and to work with Postwatch, the consumer body, to settle grievances. The recommendations follow an investigation by Postcomm after the Office of Fair Trading referred a super-complaint from Postwatch to it. Postwatch was concerned that Royal Mail may have been abusing its dominant position in the Mailsort market, significantly harming the interests of consumers. Postcomm gathered evidence to see whether or not there were sufficient grounds to investigate a potential licence breach. However, Postcomm’s investigation did not find sufficient evidence to give it reasonable grounds to suspect an infringement of Royal Mail’s licence or to warrant further investigation under the Competition Act 1998. But Postcomm did find that there was room for improvement in Royal Mail’s communications with its Mailsort customers and its handling of their complaints, and has recommended that Royal Mail work with Postwatch to improve this part of its operation.

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Postwatch urges UK Royal Mail strike payouts

Royal Mail, the troubled monopoly postal operator chaired by Allan Leighton, is in dispute with the Government-funded post watchdog on whether it should pay compensation to customers inconvenienced by recent strike action. The two organisations need to come to a decision, but sources close to the talks said they were still failing to reach agreement as to whether the wildcat strikes that crippled the delivery network constituted “circumstances beyond Royal Mail’s control”.

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