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Regulation of postal services

Provisions contained in the Postal Services Act 2000 allowed for the creation of the first independent regulator for UK postal services, Postcomm (the Postal Services Commission). The Act supported the Government's commitment to the maintenance of the universal postal service by placing a duty on Postcomm to ensure provision of the service. Subject to this duty, Postcomm is required to exercise its functions in the manner which it considers is best calculated to further the interests of postal services, wherever appropriate, by:

  • promoting effective competition between postal operators through the licensing regime;
  • setting the service standards for licensed services and monitoring performance against these standards;
  • enforcing the rights of licensees;
  • making recommendations to the Government about the size and scope of the regulated area.

The regulator operates a licensing regime for the area of the market broadly equivalent to the Royal Mail's former statutory monopoly (items weighing 350 grams or less, or items costing £1 or less). On the 1 January 2006 the UK's mail market was fully liberalised – that is, opened up for competition - which meant Royal Mail no longer enjoyed the statutory monopoly it previously held. New operators licensed by Postcomm can now collect and deliver any mail, from any customers.

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