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News & Comments

Current news and commentary from Postaf and Postal Stakeholders.

Showing 1 to 5 of 19 articles

Postaf response to Ofcom's consultation on Securing the Universal Postal Service

Postaf's response to the recent Ofcom consultation on securing the UPS was broadly neutral. Nevertheless it recommended a more cautious approach than that proposed by Ofcom with a glidepath to a regime of total light touch, ex-post, regulation.

It was suggested that for a regulatory regime that relies on the provider with dominant market power acting reasonably Customers had to have trust and confidence in the provider. Over recent times that trust and confidence has not been present.

It was recommended that an improved dispute resolution process was needed for all stakeholders not just vulnerable consumers.

As the regime had been proposed to run for 7 years a formal interim review with stakeholder consultation was suggested after three years.

It was essential that Ofcom act as an on-going bridge of confidence between Royal Mail and other stakeholders. To that end they must not only monitor RM performance but should put in place an appropriate reporting regime to stakeholders.

Posted: 24.01.2012

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Postal Servcies Act 2011 receives Royal Assent

PSB 2010 is now an Act. On 13th June 2011 the Bill received Royal Assent.

For ease of access a copy of the Postal Services Act 2011 is attached below.

Posted: 06.07.2011

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PSB 2010 reaches last hurdle

By the end of this week the PSB will have cleared the Lords with some rather sneaky last minute amendments introduced by the Government. It then returns to the Commons for final approval in early June. (Postaf was assured by BIS that there would be no amendments save error correction.)

The key change was that the "need for a provision of a universal postal service to be financially sustainable includes the need for a reasonable commercial rate of return for any universal service provider on any expenditure incurred by it for the purpose of, or in connection with, the provision by it of a universal postal service.”

There is no incentive to be efficient in the provision thus this must be seen as part of the 'fattening up' of the Royal Mail for sale. Such an approach does not bode well for users of mail services.

Additionally Vince Cable has written a letter to the current and future regulators 'advising' them as to how they should regulate the universal service provider in the future - see attachment. It can only be hoped that Ofcom will not be unreasonably swayed by such direction.

Posted: 20.05.2011

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Postaf opposes Royal Mail application for additional allowed revenue

Postaf has responded to the Postcomm minded to decision on the Royal Mail application for an additional allowed revenue of £100m.

In opposing the request Postaf identified issues with the impact of the elasticity between volume and price. Noting that whilst advertising mail volume was likely to fall if prices were increased, transactional mail - bills and statements - might not fall immediately but in the short to medium term the volume loss would be severe.

Posted: 10.01.2011

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Postaf opposes Royal Mail request to change C7 notice period

Postaf Chairman, Alan Halfacre, has written to Tim Brown, Chief Executive Postcomm, rejecting the proposed changes to the notice period for C7 changes.

The letter, copy attached, states that the original request from Royal Mail and the proposed alternative from Postcomm both be rejected and that the status quo be retained.

Posted: 28.09.2010

Further reading: Download PDF