PostCon response to refreshed Hooper report

[POSTMAN]

Postcomm response to refreshed Hooper report

10 September 2010

Richard Hooper has today published an update of his December 2008 report on the UK postal services sector. Postcomm appreciates the opportunity to have contributed to this exercise.

Since the previous Postal Services Bill was withdrawn in July last year, Postcomm has been addressing the shortcomings in the current regulatory regime. In our Forward Work Plan published in January this year, we set out a programme to develop a revised regulatory framework for implementation in full by 2012.‪

Our recent consultation, which closed on 31st August, set out Postcomm's initial conclusions on a number of key postal services markets. It put forward proposals to introduce cost transparency and accounting separation for Royal Mail, to deregulate parts of the packets and parcels markets and to give Royal Mail more commercial freedom in the pricing of access mail. These are seen as important first steps towards developing a framework, fit for purpose into the future.‪‪

Nigel Stapleton, Postcomm's Chairman, stated:‪

“We are grateful to have had the chance to contribute to Richard Hooper's update of his December 2008 report. In particular we are pleased to see recognition of the work Postcomm is doing and the need to maintain its momentum. We also share his desire to have a fit for purpose regulatory structure in place at the earliest opportunity that safeguards the universal service and meets the needs of all users. We will continue to work hard with all interested parties to achieve this objective.”‪

Notes to Editors

Postcomm, the Postal Services Commission, is the independent regulator for postal services in the UK. It is our primary duty to seek to ensure the provision of a universal postal service and, subject to this, to further the interests of users of postal services, wherever appropriate by promoting effective competition between postal operators and to seek to promote efficiency and economy on the part of postal operators. We must also have regard to the need to ensure that our licensees, including Royal Mail, are able to finance their licensed activities.

Accounting separation and cost transparency

The principles of cost transparency and accounting separation have been successfully applied by regulators in a number of industries both in the UK and abroad. By giving clarity to the consistent and sound allocation of costs, market competitors and users can be reassured that the prices set by industry participants with market power are appropriately cost reflective.

Historic chronology

May 2006 Postcomm implemented the 2006 price control, intended to continue only until March 2010

August 2007 Postcomm published the results of its Strategy Review, identifying the need to reshape Postcomm’s regulatory responses from 2010 and beyond in a rapidly evolving postal market

December 2007 This work was overtaken by the independent review of the postal services market led by Richard Hooper CBE

December 2008 The independent review published its report (the Hooper Report), the recommendations of which were welcomed by Postcomm and endorsed by the Government

February 2009 The Government sought to implement Hooper’s recommendations through the Postal Services Bill 2009

July 2009 The Bill was postponed and fell at the end of the parliamentary session. The Government announced that Postcomm would, for the time being, continue as the regulator for postal services

November 2009 Postcomm decided to extend the 2006 price control for one year to March 2011

March 2010 Postcomm published its Forward Work Plan for the next two years

May 2010 Postcomm published its initial consultation for a new regulatory framework for a sustainable postal service

[Wessex]

It would make sense for Royal Mail to have more commercial freedom over access agreements and of course this should have always been the case.Is it a coincidence that these opportunities may arrive at a time when privatisation is in the offing for RM letters.I have drawn my own conclusion.

[ziko]

Here's the best joke of day guys !
"Postcomm, the Postal Services Commission, is the independent regulator for postal services in the UK. It is our primary duty to seek to ensure the provision of a universal postal service and, subject to this, to further the interests of users of postal services, wherever appropriate by promoting effective competition between postal operators and to seek to promote efficiency and economy on the part of postal operators."

Absolutly priceless!!!

[oypostie]

It is our primary duty to seek to ensure the provision of a universal postal service and, subject to this, to further the interests of users of postal services, wherever appropriate by promoting effective competition between postal operators and to seek to promote efficiency and economy on the part of postal operators

Well you're not doing very well then are you !!!