Cap on Royal Mail competition urged

The postal regulator has been urged to introduce an immediate cap on competition to the Royal Mail.

The Communication Workers’ Union said Ofcom should act to support a “healthy, sustainable level of competition” in the postal sector and ensure the future of the one price goes anywhere universal service obligation (USO).

The call came in the CWU’s submission to the Business Select Committee which sought evidence for its inquiry into competition in the UK postal sector.

Billy Hayes, CWU general secretary, said: “Ofcom must urgently put a cap on unregulated competition to Royal Mail if it wants to secure the future of the universal postal service. At the moment it seems to favour its duty to promote competition in the postal sector instead of ensuring the financial sustainability of the USO.

“Customers receive a good quality service from Royal Mail’s postmen and postwomen and competitors rely on the flexibility of the universal service, which allows them to pass on responsibility for delivering high-cost mail.”

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