Royal Mail submits its case on quality of service failures i

[TrueBlueTerrier]

http://www.psc.gov.uk/news-and-events/n ... 07-08.html

Royal Mail has submitted to Postcomm its application for suspension of the Bulk Mail Compensation Scheme and adjustment to the C-factor for the year 2007/08. Royal Mail will present this at an open meeting on 14 May.

Major stakeholders in the postal market have been invited to this event and given the opportunity to ask any questions they have about Royal Mail’s application; this will help ensure Postcomm has appropriately considered the views of all interested parties before it makes its decision.

In June 2007, Postcomm agreed Royal Mail’s request to suspend – until the end of the financial year – the payment of compensation to bulk mail customers, and to earn revenue that it would not otherwise be permitted to do (due to the ‘C factor’), where industrial action has taken place and quality of service figures have dropped.

Postcomm agreed to the request because it wished to ensure that Royal Mail was not discouraged from taking the steps needed to modernise its business – such modernisation would be to the benefit of all mail users.

Postcomm decided that prior to making any decision it would convene an open meeting at which Royal Mail would present the main points in its application. For it to be satisfied, Postcomm expects Royal Mail to be able to demonstrate that the industrial action arose as a result of carrying out its transformation plans and not for some other reason, and had a direct causal link to quality of service failures.

Royal Mail has recently asked Postcomm to suspend the Bulk Mail Compensation Scheme and adjust the value of the C factor in the event of industrial action related to transformation activities in 2008/09.

To register for the open meeting on 14 May, please complete our online reply form. Anyone wishing to comment on Royal Mail’s application can do so at the meeting or in writing, before 31 May 2008, by writing to adam.swinburn@psc.gov.uk or Adam Swinburn, Policy Manager, Postcomm, Hercules House, Hercules Road, London, SE1 7DB.

Related documents:

* Royal Mail’s Application (pdf, 480KB)

* Annexes to Royal Mail’s Application (zip, 9,701KB).

If you are unable to access the file in this format, here is a link to the annexes on the Royal Mail website (external website).

A small amount of commercially sensitive information has been excised. Where excisions occur, they are marked by square brackets [ ]

* Report from KPMG

You can see here a summary report from KPMG. This report was commissioned by Royal Mail to gain independent assurance over certain data contained in Royal Mail’s application. This report refers to quality of service performance and related financial implications in the first half of 2007/08. KPMG will provide a copy of its report covering quality of service performance and related financial implications for the full year to Postcomm in due course.
Notes for editors:

* Further information, including previous news releases can be found in the quality of service area of the Postcomm website.