Licensing framework
The licensing framework sets out requirements on each licensee and aims to strike a balance between protecting customers and encouraging new postal operators to come into the market. A licence enables - but does not require - the licensee to provide postal services.
The framework - which came into force on 1 January 2006 and was amended on 16 January 2008 - applies to all operators. There are additional requirements that apply to Royal Mail. As the dominant company, it is subject to strict price and service quality requirements. (More information on Royal Mail's licence.)
Standard licences
The standard licence (pdf, 282KB) is the form of licence most likely to be granted to successful applicants from January 2008 - although Condition 11 will be included only where the applicant is a member of a group that includes a postal operator that has a stautory monopoly in its home state.
Standard licences:
- are issued for a rolling ten year period. Notice of ten years cannot be given until 25 March 2016, which brings other licences into line with that of Royal Mail. We believe this will provide operators with enough certainty to invest in the newly-opened market.
- require each licensee to provide information about its own performance.
- require licence holders to set up systems to handle customer complaints. (More information on how to complain about your postal services provider.)
- introduce two codes of practice, to make sure that all operators meet common standards when handling mail: a mail integrity code, requiring licensees to ensure the safety and security of the mail they handle, and a common operational procedures code, dealing with operational issues, including handling wrongly addressed and mis-delivered mail.
- require some licensees to pay an annual fee. Only those licensees with a licensed area turnover in excess of £10 million per annum have to pay an annual licence fee, which is based on market share.
