Consumer Focus Scotland says proposals for a major shake-up of the Royal Mail have to be ‘stress tested’ to ensure a quality service is maintained.
On Thursday, regulator Ofcom published proposals which would allow the postal service more freedom to set prices for a range of services while introducing new consumer safeguards and protecting competition.
Under the new system, Royal Mail which delivers 16 billion letters every year would be able to determine the cost of first class, business and bulk mail deliveries.
However, a cap of between 45p and 55p for standard second class mail would be introduced along with increased monitoring of Royal Mail’s performance and a requirement that competitors can use its network.
The proposals designed to ensure that the performance-related obligations on the Royal Mail are affordable have now been put out for an 11-week consultation.
Sarah O’Neill, director of policy at Consumer Focus Scotland, said the proposed changes were an opportunity to ensure the Royal Mail was fit for purpose and delivered for customers.
She said: ”This could be the biggest shake-up to the mail market that we have ever seen. We must ensure the right balance between putting Royal Mail on a stable footing and ensuring value and service for consumers in Scotland.
”It is clear that the current situation has become unsustainable. Mail volumes are declining and Royal Mail has not been a paragon of efficiency and business acumen.
”But while change may be necessary, this consultation needs to stress test its ideas to make sure that consumers in Scotland are assured of a universal service which provides good value and reliable service.
”Mail services are going to get more expensive for consumers. While the unit cost of a stamp may seem small, consumers have a right to expect value for money for all services.
”If customers are to pay more for their post then the quality of service must be good, reliable and backed up by effective regulation.”
Ofcom’s Stuart McIntosh said: ”The universal postal service which ensures that letters are delivered to every address in the UK six days a week is significant and highly-valued by the public. However, unless changes are made to the regulation of post, this service is under threat.”
He said the plan is to safeguard the service, ensuring it is sustainable, affordable and high-quality.