Application for the deregulation of packets

On 20 November 2008 Royal Mail submitted an application to Postcomm (pdf, 1595 KB) to remove the current price controls (Condition 21 of its licence) for a number of packet products and product formats. Royal Mail’s application was based on its belief that that competition is sufficiently developed to protect the interests of users of packet products. The application did not include the universal service products used by customers when sending parcels and packets at Post Offices.

The packet products for which an application was made are as follows:

Product Description	Format covered by application
Mailsort 1400 1st Class	Packet format only
Mailsort 1400 Residues 1st Class	Packet format only
Mailsort 1400 2nd Class	Packet format only
Mailsort 1400 Residues 2nd Class	Packet format only
Mailsort 1400 3 (including Flatsort 1400 3)	Packet format only
Packetpost 1st Class	All formats
Packetpost 2nd Class	All formats
Packetsort 8 1st Class (including Flatsort 8 1st Class)	All formats
Packetsort 8 2nd Class (including Flatsort 8 2nd Class)	All formats
Response Services 1st Class	Packet format only
Response Services 2nd Class	Packet format only
First Class Postage Paid Impression (PPI)	Packet format only
Second Class Postage Paid Impression (PPI)	Packet format only

Royal Mail also asked Postcomm to remove the requirement for it to provide notification of changes (under Condition 7 of its licence) to those packet products from which the price control is removed (if there are any). In addition, Royal Mail sought an exemption from Condition 7 for two additional packet products: Royal Mail Tracked and Mail Order Returns which are not currently price controlled.

Royal Mail is required, under its licence, to provide Postcomm with sufficient information of good quality to enable the application to be processed. Postcomm has therefore considered whether the information that was provided by Royal Mail was sufficient and of good quality. On 9 March 2009 Postcomm wrote to Royal Mail explaining that Royal Mail’s application did not contain sufficient information of good quality and that Postcomm was not as such able to consider the application. It is for Royal Mail to consider whether it wishes to resubmit an application to Postcomm, bearing in mind the requirement for sufficient information of good quality.

On 16 July 2009, Postcomm published a discussion paper setting out its emerging views on the competitive environment for packets used by businesses and inviting feedback on the future of packet products used for fulfilment. Responses were requested by 18 September 2009.

Further information about any future applications that Royal Mail may make will be published on the Postcomm website as the information is available.

Please contact Mick Fews (email link) or by telephone on 0207 593 2197 if you wish to discuss Royal Mail’s application.

Notes:

Royal Mail’s Application for Directions from Postcomm to deregulate products serving the fulfilment market was received on 20 November 2008. Postcomm asked Royal Mail to identify the material it believes would or might seriously and prejudicially affect Royal Mail’s interests were it to be published. The link below is to a redacted version of the document is from which Royal Mail has removed what it considers to be commercially confidential information.
Postcomm is required to keep confidential the information it obtains by virtue of the Postal Services Act 2000, unless Royal Mail consents to disclosure or Postcomm considers that publication will facilitate the carrying out of its functions under that Act. Therefore, should Postcomm consider that publication of any of the information that has been redacted will facilitate its performance of the functions assigned to it under the Postal Services Act 2000, the information will be published in due course, in addition to the redacted application.

Application for the deregulation of packets

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