Royal Mail may launch a website similar to a “bin-collection” to allow households to know when they will get their mail if regulators give the go ahead to reduce services.
The company wants to reduce its costs and has proposed to move the second-class letter delivery on alternate weeksdays.
Sources in the industry have confirmed that the company is planning a new service, whereby customers would be able to enter their postcode and find out when their letters are due. This service would be separate from those that track individual letters and parcels.
Ofcom, the UK’s regulator for communications, said last week that second-class letter delivery in the UK may be discontinued on Saturdays as it examines reforms of the universal service obligation. The USO is the Royal Mail mandate to deliver across the country at a single price, six days a wk.
Royal Mail, the owner of Royal Mail, has proposed to reduce deliveries of second class letters to just two or three days per week. This would save £300m and nearly 1,000 jobs each year. Ofcom has studied the proposals and will make a final decision in 2012.
Senior industry sources said that the idea was to work the same as the bin collection sites. Ofcom could be convinced by anything Royal Mail does to demonstrate that it can make cuts smoothly, and provide a more reliable service.
The government website provides a dedicated webpage for consumers to find out when their bins are collected in England and Wales.
Royal Mail, a 507-year old company, is pushing for reforms in postal services while its parent is being targeted by a £3.57bn acquisition bid from Czech billionaire Daniel Kretinsky. His bid is the subject of a national safety review.
Royal Mail delivered fewer than 80% first-class mail on time during the three months ending 30 June. The Sunday Times reported that Ofcom may reduce its first-class delivery target from 93% to 90% and the second-class delivery target from 98.5% down to 95%.
Ofcom is investigating Royal Mail over poor service. It fined Royal Mail £5.6m last year for failing to meet delivery targets.
Sources in the industry said: “Those most likely to rely on this service are older people who do not have internet access to check their delivery dates. The service is not yet reliable enough to guarantee that the date listed for the delivery of the mail will be met.
The fines for not meeting delivery targets in the past year were too low compared to the financial gains of reducing operational costs. Royal Mail cannot reduce service without improving reliability.
It is believed that the company has just begun to plan how the delivery routes of postal workers will be assigned under the alternate-days system.
Royal Mail’s spokesperson stated: “Before any possible reform of universal service, Royal Mail explores a range options to ensure that customers have all the information they require about their local post services.”
First-class stamps are set to increase by 30p next month. They will now cost £1.65. Second-class stamps will stay at 85p.
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