Royal Mail escapes price caps after Ofcom says service working well

Royal Mail will escape new price controls after the communications and regulator declared the universal postal system was working in its current form.

4000The company has been the subject of an Ofcom investigation following concerns that it no longer had competition in the delivery of letters when rival Whistl withdrew from the market.

Publishing the initial findings of its review, launched in July last year, the regulator said it would not impose new price caps on Royal Mail.

“Given the declining letters market, and increased competition in parcels, Ofcomis not proposing to impose new price controls on Royal Mail’s wholesale or retail products.”

It added: “The universal postal service is financially sustainable, while current rules and safeguards for people and businesses who use post are generally working well.”

Source: Royal Mail escapes price caps after Ofcom says service working well | Business | The Guardian