(Alliance News) - Regulators have launched an investigation into International Distribution Services PLC's Royal Mail after it delivered just over three-quarters of first-class post on time last year, missing its delivery targets set by the communications watchdog.
The company said 76.3% of first-class mail arrived within one working day in the 12 months to the end of March.
The figure marks a slight improvement on the previous year, when it was 74.5%, but it represents another 12 months in which Royal Mail has missed its delivery targets set by Ofcom.
Under the watchdog's rules, 93% of first-class mail must be delivered within one working day of collection, excluding Christmas.
An Ofcom statement on Friday said: "If we determine that Royal Mail has failed to comply with its obligations, we will consider whether to impose a financial penalty."
Ofcom has already fined Royal Mail a combined GBP16 million for missing its post delivery targets in the previous two years.
The company also missed its 98.5% target of second-class post being delivered in three days, delivering only 92.2% within the time frame, slightly down on last year.
Royal Mail Chief Operating Officer Alistair Cochrane said: "Our quality of service is not yet where we want it to be and we will continue to work hard to deliver the standards our customers expect.
"We are actively modernising Royal Mail, and while these efforts are beginning to deliver results, we know there is still more to do."
The postal service is in the process of adapting to the declining volumes of letters and growing demands for larger parcels and next-day deliveries.
It is trying to improve reliability through "recruitment and retention, reducing sickness absence, extending delivery times and increased automation", it said.
Cochrane reiterated Royal Mail's longstanding claim that its one-price-goes-anywhere so-called universal service obligation needs reform.
The universal service currently requires Royal Mail to deliver letters six days a week and parcels five days a week, but is under review.
It comes after Royal Mail raised stamp prices to GBP1.70 for a first-class stamp in April, marking the sixth price hike in three years.
Responding to the figures on Friday, Tom MacInnes, director of policy at Citizens Advice, said: "For more than half a decade, consumers have been short-changed by our country's postal service.
"Royal Mail's quality of service targets should be there to protect customers, but the company is still getting away with hiking stamp prices while failing to deliver post on time.
"Our research has shown the damaging consequences of late post, like missed health appointments, fines, bills and vital government communications.
"But with no alternative provider to choose from, people are forced to grapple with poor service, year-on-year.
"With Ofcom considering relaxing the current delivery targets set for Royal Mail as part of the universal service obligation review, reliability remains a huge concern.
"The regulator must get off the sidelines and make the company do what it should've been doing all along – giving paying customers the service they deserve."
The latest figures comes after Czech billionaire Daniel Kretinsky agreed to buy Royal Mail last year in a GBP3.57 billion deal.
International Distribution Services shares were 0.1% lower at 359.00 pence each on Friday afternoon in London, giving it a market capitalisation of GBP3.44 billion.
By Alex Daniel, PA Business Reporter
Press Association: Finance
source: PA
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