Following the Royal Assent of the Postal Services Bill, the way is now clear for the merger of the current regulator (Postcomm) within Ofcom.
This transfer is expected to be completed in October.
Ed Richards, Ofcom’s Chief Executive said: “Ofcom looks forward to taking on responsibility for regulation of postal services. We are working closely with Postcomm to secure a smooth transition of regulatory responsibilities with minimal disruption for industry, users and Postcomm colleagues. Ofcom will publish proposals on the regulatory framework for post in the autumn.”
The vision for the new regulatory framework from 2012 is as follows:
- Focus regulation where it is necessary to sustain the universal service and further the interests of users
- Put right safeguards in place to reduce the level of regulation considerably
- Create a framework that is flexible and resilient
Promoting competition remains as a priority in the UK postal market.
Ofcom has a duty to “further the interests of citizens and consumers in relation to communications matters and to further the interests of consumers in relevant markets, where appropriate by promoting competition.”
In the short term there is likely to be little real impact from this regulatory change.
Ofcom expects its work to focus initially on completing the 2012 price control and access regime for mail, and determining the scope of the regulatory conditions that will apply to Royal Mail and to other postal operators under the new general authorisation regime.
The other significant initiative will come via a major consultation on ‘The Scope of the USO’ (published in September/ October) which will last for 18 months.
