Tag: Royal Mail

Postcomm’s access proposals will put Royal Mail’s recovery at risk by forcing the company to deliver millions of letters for competitors at a loss even after all the efficiency gains set out in the company’s turnaround plan, a submission to the regulator today makes clear. The funding and pricing of the one-price-goes-anywhere mail service in the UK will unravel if the regulator’s proposals remain unchanged. In addition, those customers who aren’t targeted by new access competitors seeking profitable business mail will find themselves picking up the additional costs in the form of higher stamp prices, Royal Mail has warned.“Our position is very, very simple,” said Chairman Allan Leighton. “If we have access services they must be profitable for both Royal Mail and new competitors.”

As required by Condition 13 of the Licence issued by Postcomm, Royal Mail has appointed a Compliance Officer with responsibility for certain tasks set out in the Licence. The Licence envisages, and Postcomm expects, the Compliance Officer to play an active role in the areas for which he has responsibility under the Licence. This requires the Compliance Officer to have the requisite corporate authority and the resources necessary to perform the role effectively. In Postcomm’s view, the compliance officer needs to take a
prominent role within the company seeking to influence appropriate corporate behaviour and any necessary change in corporate culture to reflect the new regulatory system brought about by the Postal Services Act 2000. After consultation with Postcomm, Royal Mail has appointed Jonathan Evans, who is also Royal Mail Group plc’s Company Secretary, as its Compliance Officer.