Ofcom Own-initiative investigation into Royal Mail Group Limited concerning QOS

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Complainant: Ofcom own-initiative investigation
Investigation against: Royal Mail Group Limited (“Royal Mail”)
Case Opened: 13 May 2016
Issue: Whether Royal Mail has complied with its obligation under Designated USP (“DUSP”) condition 1.9.1 to achieve specified performance targets in the provision of certain end to end USO priority services (D+1 universal service mail as set out in DUSP condition 1.6.1(a))
Relevant Instrument: DUSP conditions 1.6.1(a) and 1.9.1

Ofcom has opened this own-initiative investigation following Royal Mail’s announcement of 13 May 2016 that it has not met specified quality of service targets associated with the provision of certain end to end USO priority services. (See Royal Mail’s announcement)

DUSP condition 1.6.1(a) requires Royal Mail to provide end to end USO priority services with a target routing time of one working day for conveying postal packets from the date of collection to the date of delivery (“D+1 universal service mail”). This is provided by Royal Mail as its First Class mail service.

DUSP condition 1.9.1 requires Royal Mail to meet specified performance targets associated with the quality of service of the provision of universal service products.

This condition requires Royal Mail to achieve an overall performance for D+1 universal service mail of 93% (that is 93% of relevant mail must be conveyed within one working day) and, in respect of stamped and metered mail, 91.5% in each postcode area of the UK (apart from three excluded postcode areas). This is measured as an average performance level on an annual basis excluding the Christmas period.

Royal Mail has announced that in the financial year 2015-2016 it did not meet the overall performance target as it delivered 92.5% of First Class mail within one working day and that it did not meet the postcode area target in 14 of 118 postcode areas.

In light of this Ofcom’s investigation will examine whether there are reasonable grounds for believing that Royal Mail has failed to comply with its obligations under DUSP condition 1.9.1 in respect of the financial year 2015-2016.

Case Leader: Ian Strawhorne (email: ian.strawhorne@ofcom.org.uk)
Case Reference: CW/01183/05/16