Proposal fro the Future Framework for Economic Regulation

Please find attached the CWU Submission to the Ofcom Consultation, which was endorsed by the Postal Executive at a meeting earlier today.

In essence, the new Regulator Ofcom is putting forward a set of deregulatory proposals, the salient points of which are as follows:-

  • A change from detailed licence obligations to a general authorisation regime.
  • The removal of the majority of retail and wholesale price controls.
  • The removal of the direct regulation of access prices.
  • The removal of access headroom.

The Ofcom proposals are designed to strengthen the sustainability of the Universal Service and enable Royal Mail to secure a commercial return as the USO provider.

In the Union submission we broadly welcome these proposals, although we do set out concerns over the affordability of the USO for social customers, should price increases go above what the market could stand.

The Union has also focused on the need for a more realistic efficiency debate and for the Regulator to encourage innovation within the company.

Prior to this submission, the Postal Executive received a presentation from Ofcom on the overall approach the new Regulator intends to take.  We have attached the slides that were used in this presentation.  Although there remains a lot of work to do, the Ofcom presentation did demonstrate to the Executive that we are beginning to see a shift in the balance of forces on regulation.

Please click the following link to view the document Proposal for the Future Framework for Econimic Regulation (13)

 

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