(Alliance News) - Royal Mail PLC has been ordered by the UK Office of Communications to pay a GBP1.5 million fine for overcharging customers and failing to meet its target for first-class next day delivery.
The regulatory body said the FTSE 250-listed delivery company delivered 91.5% of first-class post on the next working day in 2018/19, against a target of 93%. It added that Royal Mail was unable to provide a satisfactory explanation on its failure to deliver, adding that the company did not take sufficient steps to get back on track during the year.
Ofcom said it has also levied an additional fine of GBP100,000 as Royal Mail overcharged customers for second-class stamps between March 25 and March 31 in 2019. The stamps were charged at 61 pence, 1p over the 60p cap set by the regulatory body.
"Royal Mail has since made changes to its compliance processes that it says will prevent this error from happening again," Ofcom said.
"Many people depend on postal services, and our rules are there to ensure they get a good service, at an affordable price. Royal Mail let its customers down, and these fines should serve as a reminder that we'll take action when companies fall short," added Gaucho Rasmussen, Ofcom's director of investigations & enforcement.
Royal Mail shares were trading 0.7% higher at 166.50 pence each on Friday morning in London but are 28% lower than at the start of the year.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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