Ofcom Review

Context

The regulation framework for the UK postal services is due to expire in March 2022. To set the regulatory framework for postal services up to 2027, Ofcom, the mail regulator, has called for stakeholder input via a ‘Review of Postal Regulation’. The review closes at 5pm on 20th May. The full Ofcom document is c100 pages and is available to read here.

The regulatory framework includes the Minimum Universal Service requirements, which include:

• Service at affordable prices at a uniform public tariff
  • Postal services – (including conveying, receiving, collecting, sorting and delivering) at an affordable, uniform public tariff across the UK; and to places outside the UK.
• Delivery of letters or parcels (including those posted outside the UK)
  • At least one delivery of letters every Monday to Saturday to every address in the UK.
  • At least one delivery of other parcels every Monday to Friday to every address in the UK
• Collection of letters or parcels (including those for onward transmission outside the UK)
  • At least one collection of letters every Monday to Saturday from every access point in the UK used for receiving letters and parcels for onward transmission
  • At least one collection of other parcels every Monday to Friday from every access point in the UK used for that purpose.
• A registered items service at a uniform UK-wide, affordable public tariff.
• An insured items service at a uniform UK-wide affordable public tariff.
• A free-of-charge postal service to blind or partially sighted people.
• Free carriage of legislative petitions and addresses.
• Redirection, Post restante and Retention services

Given the current fast pace of change in the market which has seen an increase in parcels and a decrease in letters, further impacted as a result of the pandemic, the NFSP would like to ensure the future framework is fit for purpose and keeps the customer at the heart of any future change.

This will be the first time we have been asked to contribute to the review, and the NFSP would therefore like to collect as many postmaster views to feed into the response to Ofcom as we possibly can.

What is being reviewed?

Ofcom supports a continuation of service, and has highlighted the four areas that test the effectiveness of the current framework. These are:

1. What do users want
2. How the market is changing
3. The growth in e-commerce parcels and decline in letters (esp. with pandemic)
4. Efficiency to ensure viability for universal service

What is needed?

The NFSP wants to ensure that the customer experience when using post offices continues to thrive, therefore we would like to collect views on the four key areas given above. For each question, please let us know how you think your customers would react, and if there would be any impact on your business.

What will happen to the consultation results?

The NFSP will collate views by the end of April, for final submission in May. Being member focused, your views will formulate the narrative of our submission. Ofcom will publish a thorough consultation on the future regulation of postal services later this year, and finalise the review in 2022.

The following four questions relate to potential changes in delivery frequency and online price discounts.

The NFSP would like to collect sub postmaster views on the statements and scenarios below: