Background to European Union postal policy
The European Union established its policy in the postal sector as a result of several convergent factors:
- the growing needs of users and consumers for faster and more reliable basic postal services;
- new demand for value-added (express) services embracing documents, parcels and freight;
- the potential use of more available and powerful technological tools and transport means.
The policy for a gradual liberalisation of the postal sector was adopted following a widespread debate on a Green Paper published in June 1992 by the European Commission. The overall objective was the implementation of the Single Market for postal services, by opening up the sector to competition in a gradual and controlled way, within a regulatory framework which assures a universal service. The improvement of the quality of service, in particular in terms of delivery time and affordable tariffs, are fundamental aspect of this policy.
The First Postal Services Directive (97/96/EC)
This set as the threshold of services which could be reserved to a universal service provider, letters weighing no more than 350 grams and costing no more in postage than five times the tariff for the basic weight step. It provided common rules on:
- the provision of a universal postal service within the European Community;
- the criteria defining the services which may be reserved for universal service providers and the conditions governing the provision of non reserved services;
- tariff principles and transparency of accounts for universal service provision;
- the setting up of quality standards for universal service provision and the setting up of a system to ensure compliance with those standards;
- the harmonisation of technical standards;
- the creation of independent national regulatory authorities.
The Postal Services Regulations 1999, which transpose the first Directive were laid before Parliament on the 27th July 1999 and came into force from the 1st September 1999.
The Second Postal Services Directive (2002/E39/EC)
This was required to be implemented in all Member States by no later than the 1st January 2003, and had the effect of:
- reducing the threshold for reserved services to 100 grams or three times the tariff for the basic weight step (80p) from the 1st January 2003; and to 50 grams or two and a half times the tariff for the basic weight step (65p) from the 1st January 2006;
- making provisions for transparency of accounting and complaints handling to be strengthened;
- prohibiting cross-subsidisation of universal services outside the reserved sector out of revenues from services in the reserved sector (except to the extent which is shown to be strictly necessary to fulfil specific universal service obligations);
- requiring the national regulatory authorities to ensure compliance with the obligations arising from the Directive.
Before transposition in the UK, The Secretary of State for Trade and Industry (who is responsible for ensuring implementation of such Directives) invited the Regulator (Postcomm) to undertake, on her behalf, a written consultation seeking views on how best to implement the new provisions. The consultation closed at the end of October 2002 and Postcomm then submitted its advice to the Secretary of State for consideration. A copy of the consultation and that advice submitted is available on the Postcomm website.
The Postal Services (EC Directive) Regulations 2002 which transpose the second Directive were laid before Parliament on the 11th December 2002 and came into force on the 1st January 2003.
Further information can be found on the European Commission's website and if you have any questions relating to regulation you should contact the UK Regulator (Postcomm).