Regulator Ofcom said it has launched an investigation into Royal Mail's failure to meet its delivery targets in the past year - and could hand out a fine. The British delivery firm fell short of its performance targets across the 2022 to 2023 financial year for first and second class mail and deliveries.
Some 73.7% of first class mail was delivered within one working day across the year. The target was 93%. Ofcom said it takes quality of service very seriously and could fine Royal Mail if it cannot reasonably explain why it missed the targets.
The pandemic could no longer be used as an excuse for poor delivery performance, Ofcom said. The probe follows last week's news that boss Simon Thompson will step down by the end of the year. His departure was announced weeks after a lengthy dispute with the main postal union came to an end.
Ofcom warned it took "quality of service very seriously", adding: "In deciding whether the company is in breach of its obligations, we will consider if there were any exceptional events - beyond the company's control - that may have explained why it missed its targets. If it does not provide a satisfactory explanation and we determine that Royal Mail has failed to comply with its obligations, we may consider whether to impose a financial penalty."
Grant McPherson, chief operating officer of Royal Mail, said: "Improving quality of service is our top priority. We are committed to accelerating Royal Mail's transformation and restoring service levels to where our customers expect them to be.
"We're sorry to any customers who may have been impacted by our performance during a year that has been one of the most challenging in our history. With the plans we have in place to drive service levels and reduce absence, we hope and expect to see further progress in the coming months."
