Investigation into Royal Mail’s compliance with the safeguard price control placed on second class letters
|Investigation into||Royal Mail Group Limited ('Royal Mail')|
|Case opened||31 May 2019|
|Case closed||10 July 2020|
This investigation has examined Royal Mail’s compliance with the second class safeguard price control cap, imposed on Royal Mail in Designated Universal Service Provider (‘DUSP’) condition 2.2.2.
|Relevant legal provision(s)||
DUSP condition 2.2.2, and Schedule 7 to the Postal Services Act 2011
Ofcom has today published a non-confidential version of the confirmation decision issued to Royal Mail on 10 July 2020:
Following our investigation, Ofcom has today issued a Decision to Royal Mail under schedule 7 of the Postal Services Act 2011 (“the Act”), for contravening Designated Universal Service Provider (“DUSP”) condition 2.2.2. Royal Mail did this by exceeding the price cap set for second class letters between 25 March 2019 to 31 March 2019.
As a result of the breach, Ofcom has decided to impose a financial penalty of £100,000 on Royal Mail.
More details can be found in our press release.
Ofcom has determined that there are reasonable grounds for believing Royal Mail contravened its obligations under DUSP condition 2.2.2 by charging over the maximum price for Second Class standard letters, from 25 March 2019 to 31 March 2019. Accordingly, we have today issued a notification to the company under paragraph 2 of Schedule 7 to the Postal Services Act 2011.
Royal Mail now has until 15 July 2019 to make representations to Ofcom on the matters contained in the Notification.
Ofcom has opened an investigation under the Postal Services Act 2011 in relation to Royal Mail’s compliance with a safeguard price cap, imposed on it as the Designated Universal Service Provider (‘DUSP’).
The investigation will consider whether Royal Mail complied with DUSP condition 2.2.2, which caps the amount it can charge on Second Class standard letters. This relates to the period between 25 March 2019 and 31 March 2019.
Madhu Bedhan (firstname.lastname@example.org)