(Alliance News) - International Distributions Services PLC's Royal Mail could be allowed to stop Saturday postal deliveries as Ofcom will outline options for reforming the company's service obligations, Sky News reported on Saturday.

The regulator will on Wednesday publish a consultation paper which "industry sources" believe could include reforms such as modifying first- and second-class delivery targets and providing a state subsidy to support the universal service obligation, as well as allowing Royal Mail to impose higher stamp prices.

Under the reforms, Royal Mail's obligation to deliver to every UK address six days a week could be changed to a five-day structure which could see Saturday deliveries being scrapped.

https://news.sky.com/story/ofcom-paves-way-for-royal-mail-to-axe-saturday-post-13052118

The consultation paper to be released will come after Royal Mail asked for changes to its regulatory framework. Under a current system built for 20 billion letter deliveries a year, the company is merely managing seven billion now, with the figure expected to further decline based on current trends.

Removing Saturday deliveries and moving to a five-day universal service obligation would require approval from UK Parliament.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.