CICRA (the Channel Islands Competition and Regulatory Authorities) is today launching a consultation proposing changes to the way in which the postal industry is regulated which, if implemented, would save the industry £245,000 a year in licence fees alone.
The consultation recommends a scaled back regulatory approach, including the removal of price controls on Guernsey Post Limited (GPL) and Jersey Post (JP). CICRA is asking interested parties to provide their views on the way postal services in the Channel Islands should be regulated in the future.
CICRA chief executive, Andrew Riseley (pictured), said the recommended changes to postal regulation would reduce the licence fees charged to GPL from £180,000 to £90,000 and JP from £245,000 to £90,000. In addition, ‘lighter-touch' regulation would decrease the internal costs incurred by postal operators in regulatory compliance.
He said: “We are extremely keen to hear how people think the postal industry should be regulated.
“It is well known that the postal operators in the Channel Islands are experiencing significant changes in their market, with businesses and domestic consumers moving away from post to various electronic communications and bulk mail volumes down due to the loss of Low Value Consignment Relief.
“These substantial changes mean CICRA believes it is an appropriate time to consider the purpose and scope of postal regulation.”
CICRA is recommending that, along with the abolition of price control regulation, the regulator would focus its activities on GPL and JP's quality of service (with regularly published performance indicators), their compliance with licence conditions, and the application of the universal service obligation (USO) in both islands.
The consultation can be viewed on the postal section of CICRA's website:
http://www.cicra.gg/post/index.aspx. Those wishing to respond are asked to provide their views in writing to CICRA at Suites B1 & B2, Hirzel Court, St Peter Port, Guernsey GY1 2NH or 2nd Floor, Salisbury House, 1-9 Union Street, St Helier, Jersey JE2 3RF or by email to email@example.com.
All comments on the consultation should be clearly marked “Future Regulation of Postal Sector – Consultation” and should be lodged with CICRA by Friday, 29 March 2013.