Updating the Regulatory Reporting Framework – Notice of proposed modifications to the USP accounting condition

  • Start: 23 October 2013
  • Status: Statement published
  • End: 25 November 2013

Responses to consultation and Ofcom’s decision

Introduction

On 27 March 2012 we published our Statement ‘Securing the Universal Postal Service: Decision on the new regulatory framework’ (‘the March 2012 Statement’). It 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.

One of the safeguards was the comprehensive monitoring regime which we would put in place. A summary of the regulatory financial information that Royal Mail would be required to provide to support our monitoring regime were outlined in Section 11 and Annex 3 of the March 2012 Statement.

Almost two years on, to ensure the regulatory financial information provided by Royal Mail remains fit for purpose, we have decided to update the regulatory financial reporting requirements. To that end, we published our proposed changes for consultation on 23 October 2013 ‘Updating the Regulatory Reporting Framework Notice of proposed modifications to the USP accounting condition’ (the ‘October 2013 Consultation’) and invited responses on changes to the condition, and to the Regulatory Accounting Guidelines (‘RAG’) referred to in the condition, by 25 November 2013.

We received responses from Royal Mail and UK Mail, which we have considered; and in this document, we set out our decisions to update Royal Mail’s regulatory reporting framework. We also discuss, where relevant, the responses from the above-mentioned respondents, and explain how we have taken those responses into consideration.

The updated USP Accounting Condition (‘USPAC’) and RAG highlighting all the changes we have made are included in Annexes 1 and 2 respectively of the accompanying Statutory Notification. The documents as originally published by Ofcom are available at Annex 10 ‘Statutory Notification: USP accounting condition’, and Annex 11 ‘Direction: Regulatory Accounting Guideline (RAG)’ of the March 2012 Statement. Ofcom’s March 2012 statement is atAnnex 3 ‘Regulatory Financial Reporting’.


Main documents

Supporting documents

Supporting documents

Supporting documents

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Responses

Responder name Type
Royal_Mail.pdf (PDF File, 136.6 KB) Organisation
Royal_Mail_Draft_table_15_b_revised.pdf (PDF File, 64.6 KB) Organisation
UK_Mail.pdf (PDF File, 193.8 KB) Organisation