Modification to the control preventing RM margin squeeze

[TrueBlueTerrier]

Modification to the control preventing Royal Mail margin squeeze: Statement

http://stakeholders.ofcom.org.uk/consul ... -condition" onclick="window.open(this.href);return false;



Statement published 26|02|14

1.1 On 27 March 2012 we published our Statement 'Securing the Universal Postal Service: Decision on the new regulatory framework' ('the March 2012 Statement'). This set out our decision on the new regulatory framework for the postal sector, which gave Royal Mail Limited ('Royal Mail') more commercial and operational flexibility (particularly in relation to setting the majority of its prices). Regulatory safeguards were implemented to protect consumers and, where appropriate, promote effective competition.

1.2 Together with the March 2012 Statement, we imposed a set of controls and accounting conditions. Included in these was a regulatory condition made pursuant to powers under section 38 and Schedule 3 of the Postal Services Act 2011 (the "Act") (and in made in accordance with section 53 and paragraph 3 of Schedule 6 of the Act) to impose on Royal Mail, the universal service provider, an access condition. The access condition was made and notified on 27 March 2012 and is available at Annex 9 of the March 2012 Statement the ("USP Access Condition").

1.3 The USP Access Condition gives access to Royal Mail's postal network to other postal operators and users. The USP Access Condition includes a price control condition on Royal Mail.

1.4 On 28 November 2013, we consulted a proposed modification to paragraph 6.4 in the USP Access Condition to explicitly remove unrecoverable VAT from the downstream cost calculation .

1.5 This Statement sets out the stakeholder replies to this consultation, our responses to those comments and our final decision.

[clashcityrocker]

Having read all of that and understood very little, I think the conclusion is 1-0 to TNT.
Right or wrong?

[Straight4ward]

It looks as if we didn't do our homework properly before submitting our case.

Yeah, an early strike for TNT but we still have a chance to turn it around in the second-half.

[clashcityrocker]

Not with Moyes in charge we wouldn't.
Moyes/Moya - that is some coincidence.

Sick as a parrot.

[Straight4ward]

Not with Moyes in charge we wouldn't.
Moyes/Moya - that is some coincidence.

Sick as a parrot.

A good point. Oh sorry, we haven't got a point yet have we?
Over 'ere, over 'ere. On me 'ead, son.

Still, at least we know who ate all the pies.