Postcomm advises on the European Postal Services Directive

10 December 2002

Postcomm today published its advice to the Secretary of State for Trade and Industry on how best to implement the new European Directive on postal services. This follows a consultation seeking views on options for implementation of the provisions in the Directive.

The Directive reduces the part of the postal market that can be reserved to national monopoly postal operators from 350 grams to post weighing 100g from 1 January 2003 and 50g from 1 January 2006.

In the UK, Royal Mail and competing companies are licensed by Postcomm to provide postal services. At present licenses are required to handle mail weighing 350g or less and costing less than £1.

Postcomm recommends keeping UK licensing at the present limit. If agreed, this would be on the basis that licences above 100 grams (80p) after 1 January 2003 and 50 grams (65p) after 1 January 2006 would be granted by Postcomm with no restrictions on the nature of the services provided. Postcomm concludes that this is the best way to safeguard the universal service and to ensure that postal users benefit from competition in the early stages of market opening.

Postcomm also recommends that changes should be made to its statutory licensing powers so that it is clear that it can only licence services that fall within the scope of the universal service.

Both these recommendations would require amendment of the Postal Services Act 2000. Implementation is a matter for the Secretary of State.

The consultation also looked at implementing a number of other provisions in the Directive concerning transparency and non-discrimination in relation to special tariffs, prohibition of cross-subsidisation and complaint handling to protect users of postal services. Postcomm recommends that these changes be made through modifications to Royal Mail’s licence. Royal Mail has already agreed to all the necessary changes being made.

Notes for Editors

The Postal Services Directive 2002/39/EC was adopted on 10 June 2002. It amends Directive 97/67/EC with regard to the further opening of competition in Community postal services. Member States are required to implement the Directive by 1 January 2003.

The Secretary of State for Trade and Industry is responsible for implementing the new Directive in the UK but as the Directive affects the regulatory regime under which Postcomm operates, she asked Postcomm to carry out the necessary consultations and to provide her with advice on how best to implement the Directive’s provisions. On 4 September, Postcomm issued a consultation document seeking views on options for implementation of the Directive.

The text of the advice to the Secretary of State, Implementation of the European Directive on Postal Services in the UK, can be found on the Postal Services Directive consultation page. Copies are also available from Postcomm at 6 Hercules Road, London SE1 7DB.