Financial watchdog warns on post services

Postcomm, the new postal services regulatory body, could be prevented from promoting competition in delivery services due to its statutory duty to ensure a universal service at a uniform price, according to the NAO.

The NAO also warned there might be insufficient competition to generate an improved service to most customers if Postcomm continues to only issue short term licences to new postal companies.

Sir John Bourn, head of the NAO, said: ‘For their strategy to be successful, and to ensure that postal services improve rather than decline, they need to address the risks I have identified.’

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