Postal Services Bill

House of Commons

Session 2010 - 11
Internet Publications
Other Bills before Parliament

Postal Services Bill

Postal Services Bill
Part 3 — Regulation of postal services
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Requirement 6: services to blind or partially sighted

The provision free of charge of such postal services as are specified
in the universal postal service order to such descriptions of blind or
partially sighted persons as are so specified.
Requirement 7: legislative petitions and addresses
5

A service of conveying free of charge qualifying legislative petitions
and addresses.
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Section 30: definitions
(1)
“Insured items service” means a service of conveying postal packets from one
place to another by post which, in the event of the theft or loss of or damage to
10
the packets, provides for the payment of an amount up to the value of the
packets as declared by the sender.
(2)
“Legislative petitions and addresses” means—
(a)
petitions and addresses to Her Majesty meeting the weight and covers
requirements which are sent by post to a member of a legislative body,
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(b)
petitions meeting those requirements which are addressed to a
legislative body and are sent by post to a member of such a body or to
the Clerk of the Scottish Parliament, or
(c)
petitions and addresses forwarded to Her Majesty or, in Northern
Ireland, to the Secretary of State.
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(3)
For the purposes of subsection (2)—
(a)
a “legislative body” means either House of Parliament, the Scottish
Parliament, the National Assembly for Wales or the Northern Ireland
Assembly, and
(b)
petitions or addresses meet the “weight and covers requirements” if
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they do not exceed 1 kilogram in weight and are sent without covers or
in covers open at the sides.
(4)
“Registered items service” means a service of conveying postal packets from
one place to another by post which provides—
(a)
for the registration of the packets in connection with their conveyance
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by post, and
(b)
for the payment of an amount determined by the person providing the
service in the event of the theft or loss of or damage to the packets.
(5)
In this section references to conveying postal packets from one place to another
include—
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(a)
the incidental services of receiving, collecting, sorting and delivering
them, and
(b)
conveying them to places outside the United Kingdom.
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Exceptions to minimum requirements
(1)
Nothing in section 30 requires the doing of anything in relation to a letter or
40
other postal packet—
(a)
whose weight exceeds 20 kilograms, or

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(b)
whose dimensions fall outside the minimum and maximum
dimensions laid down in the Convention and the Agreement
concerning Postal Parcels adopted by the Universal Postal Union.
(2)
The requirements in section 30 in respect of the delivery or collection of letters
or other postal packets (requirements 1 and 2)—
5
(a)
do not need to be met on any day which is (in the part of the United
Kingdom concerned) a public holiday, and
(b)
do not need to be met in such geographical conditions or other
circumstances as OFCOM consider to be exceptional.
(3)
Nothing in section 30 is to be read—
10
(a)
as requiring a service to continue without interruption, suspension or
restriction in an emergency, or
(b)
as preventing individual agreements as to prices from being concluded
with customers.
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Review of minimum requirements
15
(1)
OFCOM may from time to time review the extent to which the provision made
by section 30 reflects the reasonable needs of the users of postal services
provided in the United Kingdom.
(2)
A review under subsection (1) may, in particular, consider whether the
requirements imposed by that section could be altered so as better to reflect
20
those needs.
(3)
OFCOM must send a copy of each review under subsection (1) to the Secretary
of State.
(4)
The Secretary of State may at any time direct OFCOM to carry out a review
under subsection (1).
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(5)
Where OFCOM have carried out a review under subsection (1), the Secretary
of State may by order amend section 30.
(6)
The provision that may be made by an order under subsection (5) does not
include the making of different provision in relation to different places in the
United Kingdom.
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(7)
An order under subsection (5)—
(a)
is subject to affirmative resolution procedure, and
(b)
may include such amendments of this Part as the Secretary of State
considers necessary or expedient in consequence of any provision
made by the order.
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Universal service providers
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Designation of universal service providers
(1)
OFCOM may designate one or more postal operators as universal service
providers.
(2)
But there are only two cases in which there may be more than one postal
40
operator designated as a universal service provider.
(3)
The first case is where—

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(a)
OFCOM have made a procurement determination under section 43
(fairness of bearing burden of universal service obligations), and
(b)
in the light of that determination, OFCOM consider it appropriate for
the number of postal operators designated as universal service
providers to be greater than one.
5
(4)
The second case is where—
(a)
a postal administration order has been made under Part 4, and
(b)
OFCOM consider it appropriate for the number of postal operators
designated as universal service providers to be greater than one for, or
in connection with, achieving the objective of the postal administration.
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(5)
OFCOM must publish each designation in such way as they consider
appropriate for bringing it to the attention of members of the public.
(6)
The procedure to be followed for the making of a designation under this
section must be provided for in regulations made by OFCOM.
(7)
OFCOM may—
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(a)
review the designations for the time being in force, and
(b)
consider what (if any) designated USP conditions should continue to
apply to each of the universal service providers.
(8)
The procedure to be followed on a review must be provided for in regulations
made by OFCOM.
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(9)
Regulations made by OFCOM must provide for a postal operator’s
designation to cease to have effect where, in any case described in the
regulations, the operator is no longer subject to any universal service
obligations.
(10)
Both the procedure for designations and the procedure for the conduct of
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review of designations provided for by regulations under this section must be
one appearing to OFCOM—
(a)
to be efficient, objective, proportionate and transparent, and
(b)
not to involve, or to tend to give rise to, any undue discrimination
against any person or description of persons.
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(11)
OFCOM must notify the European Commission of the designations and of any
case where a designation ceases to have effect (and the notification must
identify the postal operator designated or ceasing to be designated).
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Designated USP conditions
(1)
OFCOM may impose a designated USP condition on a universal service
35
provider.
(2)
A designated USP condition is a condition requiring the provider to do one or
more of the following—
(a)
to provide a universal postal service, or part of a universal postal
service, throughout the United Kingdom, or in a specified area of the
40
United Kingdom, in accordance with the standards set out in the
universal postal service order,
(b)
to provide, or make arrangements for the provision of, access points for
the purposes of a universal postal service,

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(c)
to provide specified information (at such times and in such manner as
OFCOM may direct) to other postal operators and users of postal
services about the services within paragraph (a) that it is required to
provide, and
(d)
to do anything else that OFCOM consider appropriate for the purposes
5
of, or in consequence of, the obligations imposed under any of
paragraphs (a) to (c).

In this subsection “specified” means specified in the condition.
(3)
OFCOM may impose a designated USP condition only if they consider it is
necessary to do so in order to secure the provision of a service of a description
10
set out in the universal postal service order in accordance with the standards
set out there.
(4)
A designated USP condition may make provision as to the tariffs to be used for
determining prices in accordance with which a universal postal service, or part
of a universal postal service, is provided.
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(5)
In exercising the power conferred by subsection (4), OFCOM must seek to
ensure that—
(a)
the prices are affordable,
(b)
the prices take account of the costs of providing the service or part of a
service, and
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(c)
the prices provide incentives to provide the service or part of a service
efficiently.
(6)
A designated USP condition may impose performance targets.
(7)
If there are two or more universal service providers—
(a)
OFCOM must secure that there is no overlap in the universal service
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obligations imposed on the providers, and
(b)
designated USP conditions may require the providers to make
arrangements for securing that a universal postal service operates
uniformly and effectively throughout the United Kingdom.
(8)
In this Part “universal service obligations”, in relation to a universal service
30
provider, means the obligations imposed on the provider by any designated
USP condition.
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Publication of information about performance
(1)
A designated USP condition must include provision requiring the universal
service provider concerned—
35
(a)
to publish information about the extent to which it is providing
specified postal services in accordance with specified standards, and
(b)
to publish annually an independently audited performance report.
(2)
The reference here to an independently audited performance report is to a
report that—
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(a)
contains information about the provider’s performance in complying
with specified requirements under the designated USP condition, and
(b)
is audited by an independent person for accuracy and, if there are two
or more universal service providers, for its usefulness in comparing
information published by other universal service providers.
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(3)
An “independent person” means a person who is independent of both OFCOM
and universal service providers.
(4)
OFCOM must notify the European Commission of anything contained in a
designated USP condition as a result of subsection (1).
(5)
A designated USP condition may require the universal service provider
5
concerned to meet the costs of the audit required as a result of subsection (1)(b).
(6)
A designated USP condition may include other provision requiring the
universal service provider concerned to publish information about its
performance in complying with specified requirements under the designated
USP condition.
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(7)
The provision made as a result of this section—
(a)
must include provision—
(i)
requiring information previously published to be updated and
published again, and
(ii)
requiring the published information to satisfy requirements
15
that OFCOM consider appropriate to secure its adequacy, and
(b)
may include requirements as to the times at which, and the manner in
which, the information is to be published.
(8)
In this section “specified” means specified in the designated USP condition.
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USP access conditions
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(1)
OFCOM may impose a USP access condition on a universal service provider.
(2)
A USP access condition is a condition requiring the provider to do either or
both of the following—
(a)
to give access to its postal network to other postal operators or users of
postal services, and
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(b)
to maintain a separation for accounting purposes between such
different matters relating to access (including proposed or potential
access) to its postal network as OFCOM may direct.
(3)
The provider’s “postal network” means the systems and all the resources used
by the provider for the purpose of complying with its universal service
30
obligations (and, accordingly, includes arrangements made with others for the
provision of any service).
(4)
OFCOM may not impose a USP access condition unless it appears to them that
the condition is appropriate for each of the following purposes—
(a)
promoting efficiency,
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(b)
promoting effective competition, and
(c)
conferring significant benefits on the users of postal services.
(5)
In addition, OFCOM may not impose any price controls on a universal service
provider in a USP access condition unless it appears to them that the provider
concerned—
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(a)
might otherwise fix and maintain some or all of its prices at an
excessively high level with adverse consequences for users of postal
services, or
(b)
might otherwise impose a price squeeze with adverse consequences for
users of postal services.
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(6)
In imposing price controls in a USP access condition in connection with the
giving of access to a universal service provider’s postal network or to part of
that network, OFCOM must have regard to such of the costs incurred in the
provision of that network, or part of that network, as OFCOM consider
appropriate.
5
(7)
In imposing price controls in a USP access condition OFCOM may—
(a)
have regard to the prices at which services are available in comparable
competitive markets, and
(b)
determine what they consider to represent efficiency by using cost
accounting methods.
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(8)
In deciding what obligations to impose in a USP access condition in a particular
case, OFCOM must (in addition to taking into account anything relevant for
the purpose of performing their duty under section 28) take into account, in
particular, the following factors—
(a)
the technical and economic viability, having regard to the state of
15
market development, of installing and using facilities that would make
the proposed access unnecessary,
(b)
the feasibility of giving the proposed access,
(c)
the investment made by the universal service provider concerned in
relation to the matters in respect of which access is proposed,
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(d)
the need to secure effective competition in the long term, and
(e)
any rights to intellectual property that are relevant to the proposal.
(9)
For the purposes of this section references to giving a person access to a
provider’s postal network include giving a person an entitlement to use, be
provided with or become a party to any services, facilities or arrangements
25
comprised in the postal network.
(10)
In Schedule 3—
(a)
Part 1 makes provision about the kind of matters that may be included
in a USP access condition, and
(b)
Part 2 makes provision about the resolution of access disputes by
30
OFCOM.
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USP accounting conditions
(1)
OFCOM may impose a USP accounting condition on a universal service
provider.
(2)
A USP accounting condition is a condition requiring the provider to do one or
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more of the following—
(a)
to maintain a separation for accounting purposes between such
different matters as OFCOM may direct for such purposes as they may
direct,
(b)
to comply with rules made by OFCOM in relation to those matters
40
about the identification of costs and cost orientation,
(c)
to comply with rules made by OFCOM about the use of cost accounting
systems in relation to those matters, and
(d)
to secure that its compliance with those systems is audited annually by
a qualified independent auditor.
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(3)
An obligation within subsection (2)(a)—

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(a)
may require the separation to be maintained in relation to different
services, facilities or products or in relation to services, facilities or
products provided in different areas, and
(b)
may impose requirements about the accounting methods to be used in
maintaining the separation.
5
(4)
An obligation within subsection (2)(b) or (c)—
(a)
may include conditions requiring the application of presumptions in
the fixing and determination of costs and charges for any purpose, and
(b)
may require the universal service provider concerned to publish such
accounts and other information relating to anything required to be
10
done as a result of those provisions as OFCOM consider appropriate.
(5)
An obligation within subsection (2)(d) may require the universal service
provider concerned to meet the costs of the audit.
(6)
If a USP accounting condition imposes rules on a universal service provider
about the use of cost accounting systems, OFCOM may secure that the
15
condition also imposes an obligation on the provider to make arrangements for
a description to be made available to the public of the cost accounting system
used.
(7)
If OFCOM impose an obligation under subsection (6), the description of
information to be made available must include details of—
20
(a)
the main categories under which costs are brought into account for the
purposes of that system, and
(b)
the rules applied for the purposes of that system with respect to the
allocation of costs.
(8)
In this section “qualified independent auditor” means a person who—
25
(a)
is eligible for appointment as a statutory auditor under Part 42 of the
Companies Act 2006, and
(b)
if the appointment were an appointment as a statutory auditor, would
not be prohibited from acting by section 1214 of that Act (independence
requirement).
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Persons providing services within scope of universal postal service
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Services within scope of the universal postal service
(1)
A postal service is within the scope of the universal postal service if—
(a)
the service falls within the description of a service set out in the
universal postal service order, or
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(b)
the service would fall within the description of a service set out in that
order but for the fact that—
(i)
in the case of a service consisting of the delivery or collection of
letters or other postal packets, the delivery or collection is not
made on each of the days required by section 30 (see
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requirements 1 and 2),
(ii)
the service is not provided throughout the United Kingdom, or
(iii)
the service is not provided at an affordable price in accordance
with a public tariff which is uniform throughout the United
Kingdom, or
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