Guernsey Postal monopoly may end to help consumers

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GUERNSEY POST could lose its monopoly under plans unveiled by the Office of Utility Regulation.0676261

The OUR, which regulates Guernsey Post, Guernsey Electricity and the island’s telecoms industry, today announced its proposals aimed at increasing competition in the postal market.

It has now begun a period of public consultation to gauge opinion on the proposed changes, which would come into effect from April.

Guernsey Post currently benefits from a ‘reserved area’ of the market, which gives it a monopoly position for all post under £1.35 - the utility is islanders’ only option for items below that value.

OUR director-general John Curran said the regulator was considering removing that benefit.

‘By and large - and other jurisdictions have certainly taken this view - customers are usually better served when there is competition in the market,’ he said.

‘The UK has abolished its reserved area for Royal Mail and Jersey never had one. They did not believe it was in consumers’ interests to have a monopoly in place.’

Guernsey Post had actually asked the OUR for an increase in the reserved area to £2.15.

It has also requested price rises to combat the increasing costs of using Royal Mail.

Despite its proposal to take away Guernsey Post’s monopoly, Mr Curran said plans were at the consultation stage only and many outcomes were still possible.

‘It could be that we remove the reserved area and we do not accept Guernsey Post’s price increases,’ he said.