Green-light for Royal Mail revamp

Postcomm – the postal regulator axed last week – bowed out with one final act which cocks a snook at both consumers and businesses by approving controversial changes to Royal Mail’s operating licence.
As Postcomm bosses handed over control to Ofcom, they gave the thumbs-up to trials which will see posties leave undeliverable parcels with neighbours, as well as the scrapping of compensation payments for most business direct mail.
The move comes despite huge resistance to the changes. Last month, a Consumer Focus study showed more than half of the 2,054 people questioned said they did not want neighbours signing for mail on their behalf. One in five was unhappy for any of their neighbours to receive any of their post, while some four out of five consumers said they would want to be able to opt out of the scheme entirely.
It is understood that the trial will allow consumers to opt-out although the cost of allowing this facility on a national scale could make it prohibitive.
Meanwhile, Royal Mail has also been allowed to scrap compensation payments for loss or damage of postal items for business customers using services such as Mailsort or Packetpost.
The vast majority of direct mailshots use one of the three Mailsort products but the postal operator claimed existing compensation arrangements were “not in tune with today’s market” and the changes would bring it “more in line with other delivery companies”.
A statement said: “Postcomm broadly accepts Royal Mail’s application to change the terms and conditions of its regulated business, amending its compensation arrangements for lost and damaged items and aligning the retention periods for undeliverable items that are held at Royal Mail delivery offices.
“The only substantive change from Royal Mail’s original proposals is that the time limit for claiming compensation for loss or damage in relation to Scheme services and other services where the right to compensation remains, will be 80 calendar days from the date of posting, rather than the 60 days originally proposed by Royal Mail.”