Royal Mail investigated by Ofcom for lacking supply targets | EUROtoday

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Royal Mail is being investigated by Ofcom after the service did not ship lower than three quarters of first-class submit on time within the final 12 months.

In its yearly monetary outcomes on Friday, Royal Mail’s dad or mum firm, International Distribution Services (IDS) mentioned solely 74.5% of first-class mail was delivered inside one working day.

Regulator Ofcom’s guidelines state 93% of first-class mail have to be delivered inside the timeframe, excluding Christmas.

Ofcom mentioned: “If it does not provide a satisfactory explanation and we determine Royal Mail has failed to comply with its obligations, we will consider whether to impose a financial penalty.”

Last 12 months, Ofcom fined the corporate £5.6m for failing to fulfill its supply targets in 2022-23.

Royal Mail’s launched figures had been delivered greater than 24 hours late, after markets closed on Friday.

The chief govt of IDS mentioned the monetary outcomes confirmed Royal Mail’s losses narrowed to £348m – from £419m for the 12 months ending 31 March.

Martin Seidenberg mentioned: “We have improved quality, won back customers lost during industrial action, controlled costs and delivered Christmas for our customers.”

The outcomes come as IDS waits for a possible buy-out provide from Czech billionaire Daniel Kretinsky.

It reiterated it’s “minded” to just accept a proposed bid value about £3.5bn put ahead on 15 May.

Business Secretary Kemi Badenoch mentioned earlier this month that Royal Mail’s common service obligation will must be protected in any sale of the agency.

IDS has beforehand mentioned Mr Kretinsky agreed to supply a set of “contractual undertakings” to guard key public curiosity components.

It additionally mentioned the proposal recognised Royal Mail’s standing as a serious a part of nationwide infrastructure.

This would come with commitments to Royal Mail’s plans to maintain six-day-a-week first-class letter deliveries beneath the common service, shield employees’ rights and preserve the Royal Mail model, in addition to its UK headquarters and tax residence.

Mr Kretinsky has till 29 May to make a agency provide.