Royal Mail could face Ofcom fine for missing performance targets with too many slow deliveries | Business News

Royal Mail is once more being investigated by the communications regulator over its missed supply targets.

Ofcom introduced the inquiry after Royal Mail stated on Monday it didn’t meet its 2022 to 2023 high quality of service targets.

The targets require Royal Mail to ship 93% of first-class mail inside one working day of assortment; ship 98.5% of second-class mail in three working days of assortment; and full 99.9% of supply routes on every day {that a} supply is required.

However the former state-owned monopoly stated solely 73.7% of first-class mail arrived inside one working day; 90.7% of second-class put up arrived inside three working days; and simply 89.35% of supply routes have been accomplished for every day a supply was required.

As a part of the investigation, Ofcom will study if there have been any cheap grounds or distinctive occasions, past the corporate’s management, for it to have failed to satisfy its common service obligation.

A positive could also be imposed if Royal Mail doesn’t present a passable clarification, the regulator stated.

Industrial motion will probably be raised by the corporate as an evidence.

Over the previous yr, Royal Mail has been hit by strikes – earlier than a settlement was reached final month – as employees members of the Communication Employees Union (CWU) staged walkouts, in search of improved pay and to retain working circumstances.

In a contentious listening to, with MPs of the Enterprise, Power and Industrial Technique (BEIS) committee, the Royal Mail boss admitted prioritising parcels over letters, throughout and following days of business motion, although he denied that it was firm coverage to take action.

Simon Thompson had been recalled for questioning by the committee and was accused of giving “inconsistencies” in his evidence.

A Royal Mail spokesperson stated on Monday: “We’re disillusioned with our high quality of service efficiency and restoring our service to the excessive requirements our prospects count on is our prime precedence.

“We’ll take part absolutely with any Ofcom’s investigation.”

It is not the primary Royal Mail investigation by Ofcom. In 2019 a £1.5m positive was issued for first-class put up supply failures.

In December final yr, the watchdog stated it warned the supply firm it couldn’t proceed to make use of the COVID-19 pandemic as an excuse for poor supply after it didn’t meet the 2021 to 2022 supply targets.

Ofcom didn’t discover Royal Mail was in breach of any of its regulatory obligations for that yr.

Royal Mail additionally didn’t meet 2020 to 2021 targets.

On Friday the Royal Mail chief government formally introduced his departure plan, as first reported by Sky News.

The corporate stated it was in “advanced stages” of appointing a brand new chief government and Mr Thompson will stay with the enterprise till 31 October as a part of the transition.