40 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
(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 31 (see 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
(c) in the opinion of OFCOM the service is of a kind that, from the point of view of users of postal services, could reasonably be said to be interchangeable with a service of a description set out in that order.
(2) In this section any reference to a service includes a part of a service.
(1) OFCOM may impose a notification condition on—
(a) every person providing, or intending to provide, a service within the scope of the universal postal service, or
(b) every person providing, or intending to provide, a service within the scope of the universal postal service of a specified description.
(2) A notification condition is a condition requiring the person to give OFCOM—
(a) advance notice of the person's intention to provide a letters business on a specified scale (whether or not the person is currently providing a letters business or any other postal service), and
(b) where the person is already providing a letters business on a specified scale, advance notice of the person's intention to expand the business by a specified extent.
(3) A specified scale or extent may be determined by reference to any specified factor.
(4) The Secretary of State may at any time direct OFCOM to impose a notification condition.
(5) The direction may (but need not) specify some or all of the provision to be contained in the condition.
(6) Where a notification condition applies to a person at a time when the person is not providing a postal service—
(a) Schedule 7 (enforcement of regulatory conditions) is to have effect as if paragraph 7(2) and (3) were omitted and as if, for the purposes of paragraph 11, the person were providing a postal service, and
(b) Schedule 8 (information provisions) is to have effect as if the person were a person falling within paragraph 1(2) and as if, for the purposes of paragraph 8, the person were providing a postal service.
(7) In this section—
“advance notice” means written notice given at least a specified period of time before the person intends to do as mentioned in subsection (2)(a) or (b),
“a letters business” means a postal service which consists in the delivery of letters, and
“specified” means specified in the notification condition.
(1) OFCOM may impose a general universal service condition on—
(a) every postal operator providing a service within the scope of the universal postal service, or
(b) every postal operator providing a service within the scope of the universal postal service of a description specified in the condition.
(2) A general universal service condition is—
(a) a condition containing such obligations as OFCOM consider necessary to impose for, or in connection with, securing the provision of a universal postal service in accordance with the standards set out in the universal postal service order, or
(b) a condition containing such obligations as OFCOM consider necessary to impose for the purposes of section 46.
(3) A general universal service condition may require a person—
(a) to make contributions in accordance with any scheme established under section 46, and
(b) to take such steps as may be required by any such scheme as regards contributions made by users of services within the scope of the universal postal service.
(4) At any time when there is a universal service provider, nothing in subsection (2)(a) is to be read as authorising the imposition of a condition requiring a person—
(a) to deliver or collect letters or other postal packets as mentioned in section 31,
(b) to provide a service throughout the United Kingdom, or
(c) to provide a service at an affordable price in accordance with a public tariff which is uniform throughout the United Kingdom.
43 Recovery of administrative charges incurred by OFCOM
Schedule 4 makes provision authorising OFCOM to impose charges on postal operators providing services within the scope of the universal postal service to meet costs incurred by OFCOM in carrying out their functions in relation to postal services.
44 Review of costs of universal service obligations
(1) OFCOM may from time to time review the extent (if any) of the financial burden for a universal service provider of complying with its universal service obligations.
(2) In carrying out a review under this section OFCOM must consider the extent to which, in their opinion, the provider is complying with its universal service obligations in a cost-efficient manner.
(3) If—
(a) regulations under section 35 require the financial burden of complying with universal service obligations (or proposed universal service obligations) to be taken into account in determining whom to designate, and
(b) the regulations provide for a particular method of calculating that burden to be used for the purposes of that determination,
that must be the method of calculation applied on a review under this section.
(4) If subsection (3) does not apply, the financial burden of complying is to be taken to be the amount calculated by OFCOM to be the net cost of compliance after allowing for market benefits accruing to the universal service provider from—
(a) the provider's designation, and
(b) the application to the provider of universal service obligations.
(5) After carrying out a review under this section OFCOM must either—
(a) ensure that the calculations made by them on the review are audited by a person who appears to them to be independent of universal service providers, or
(b) carry out an audit of those calculations themselves.
(6) OFCOM must ensure that a report on the audit—
(a) is prepared, and
(b) if not prepared by OFCOM, is provided to them.
(7) OFCOM must publish—
(a) their conclusions on the review, and
(b) a summary of the report of the audit which was carried out as respects the calculations made for the purposes of that review.
(8) The publication must be in such manner as OFCOM consider appropriate for bringing it to the attention of the persons who, in their opinion, are likely to be affected by it.
(9) The Secretary of State may at any time direct OFCOM to carry out a review under this section.
(10) Unless directed to do so by the Secretary of State, OFCOM may not carry out a review under this section before the end of the period of 5 years beginning with the day on which this section comes into force.
45 Fairness of bearing burden of universal service obligations
(1) This section applies if OFCOM—
(a) have concluded on a review under section 44 that complying with its universal service obligations imposes a financial burden on a universal service provider, and
(b) have published that conclusion in accordance with that section.
(2) OFCOM must determine whether they consider it is or would be unfair for the provider to bear, or to continue to bear, the whole or a part of the burden of complying with its universal service obligations.
(3) The determination by OFCOM of—
(a) whether it is or would be unfair for the provider to bear, or to continue to bear, that burden, or
(b) the extent (if any) to which that is or would be unfair,
must be made in accordance with regulations made by OFCOM.
(4) OFCOM must publish the determination.
(5) The publication must be in such manner as OFCOM consider appropriate for bringing it to the attention of the persons who, in their opinion, are likely to be affected by it.
(6) If OFCOM determine that it is or would be unfair for the provider to bear, or to continue to bear, the whole or a part of that burden, they must submit a report to the Secretary of State setting out their recommendations as to the action (if any) that they consider ought to be taken to deal with the burden.
(7) The report may make recommendations—
(a) about the order in which action ought to be taken, and
(b) as to whether the taking of action ought to be contingent on the success or otherwise of the taking of other action.
(8) The recommended action may consist of one or more of the following—
(a) the carrying out of a review under section 34 (review of minimum requirements),
(b) requiring contributions to be made in accordance with section 46 for meeting some or all of that burden, and
(c) the making of a procurement determination.
(9) A procurement determination is a determination by OFCOM as to whether, in their opinion, any particular postal operator or operators (which may include the provider) could provide any of the postal services required to be provided by the universal service obligations concerned in a way which would mean that—
(a) no unfair financial burden would be imposed on any person (or persons) in complying with those obligations, or
(b) the financial burden imposed on any person (or persons) in complying with those obligations would be less unfair than the one mentioned in subsection (6).
(10) A procurement determination must be made in accordance with regulations made by OFCOM.
(11) After receiving the report under subsection (6), the Secretary of State must determine what action (if any) the Secretary of State considers ought to be taken by OFCOM to deal with the burden.
(12) The Secretary of State may then direct OFCOM to take that action.
(13) A direction under subsection (12) may make provision—
(a) about the order in which specified action is to be taken, and
(b) for the taking of specified action to be contingent on the success or otherwise of the taking of other specified action.
In this subsection “specified” means specified in the direction.
(14) A direction under subsection (12) may not require OFCOM to make a procurement determination at any time in the period of 10 years beginning with the day on which this section comes into force unless the universal service provider has agreed to the making of the determination.
(1) This section applies where the Secretary of State has directed OFCOM to require contributions to be made for meeting some or all of the burden concerned.
(2) The contributions are to be made by either or both of the following—
(a) postal operators providing services within the scope of the universal postal service,
(b) users of services within the scope of the universal postal service (by way of the charges paid by them).
(3) OFCOM may determine that the contributions under this section are to be made only by a description of postal operator or user.
(4) The assessment, collection and distribution of the contributions must be carried out in accordance with a mechanism provided for in a scheme contained in regulations made by OFCOM.
(5) OFCOM must exercise their power to make the regulations in a way they consider will secure the operation of the scheme—
(a) in an objective, proportionate and transparent way,
(b) in a way that does not involve, or tend to give rise to, any undue discrimination against particular postal operators (or a particular description of postal operators) or particular users (or a particular description of users), and
(c) in a way that avoids, or (if that is impracticable) minimises, any distortion of competition.
(6) The regulations may provide for—
(a) the scheme, and
(b) any fund set up for the purposes of the scheme,
to be administered by OFCOM or some other person specified in the regulations.
(7) A person may be specified only if OFCOM are satisfied as to the person's independence of both—
(a) universal service providers, and
(b) postal operators providing postal services within the scope of the universal postal service.
(8) The regulations may not be made unless—
(a) the Secretary of State has consented to the making of them and
(b) a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.
(1) This section applies where regulations under section 46 provide for a scheme for the assessment, collection and distribution of contributions.
(2) OFCOM must prepare and publish a report setting out, in relation to the period to which it applies—
(a) every determination by OFCOM that has had effect in relation to a time in that period as a determination of the costs of providing anything required to be provided by a universal service provider to meet its universal service obligations,
(b) the market benefits for each universal service provider that have accrued to the provider during that period from its designation and the application to it of universal service obligations, and
(c) the contribution made by every person who has made a contribution during that period.
(3) The first report under this section must be prepared in relation to the period of 12 months beginning with the coming into force of the first regulations made under section 46.
(4) Subsequent reports must be prepared in relation to the period of 12 months beginning with the end of the period to which the previous report applied.
(5) A report under this section—
(a) must be prepared as soon as practicable after the end of the period to which it is to apply, and
(b) must be published as soon as practicable after its preparation is complete.
(6) OFCOM are not required under this section—
(a) to publish any matter that is confidential, or
(b) to publish anything that it would not be reasonably practicable to publish without disclosing such a matter.
(7) A matter is confidential for this purpose—
(a) if it relates specifically to the affairs of a particular body and publication of the matter would or might, in OFCOM's opinion, seriously and prejudicially affect the interests of the body, and
(b) if it relates to the private affairs of an individual and publication of the matter would or might, in OFCOM's opinion, seriously and prejudicially affect the interests of the individual.
(8) A report under this section must be published in such manner as OFCOM consider appropriate for bringing it to the attention of the persons who, in their opinion, are affected by the matters to which it relates.
(1) The Secretary of State may make regulations requiring persons to notify OFCOM before they carry on business as postal operators.
(2) The Secretary of State must consult OFCOM before making the regulations.
(3) The regulations may make provision corresponding, with such modifications as appear to the Secretary of State to be appropriate, to any of the provisions of sections 33 to 37 of the Communications Act 2003 (requirements to notify before carrying on a regulated activity).
(4) The maximum penalty which may be imposed by the regulations for failure to comply with any of its provisions must not exceed the maximum penalty for the time being specified in section 37(6) of that Act.
(5) OFCOM must establish and maintain a register which records every notification given to them under the regulations.
(6) Information recorded in the register must be recorded in such manner as OFCOM consider appropriate.
(7) OFCOM must publish a notice setting out—
(a) the times at which the register is for the time being available for public inspection, and
(b) the fees that must be paid for, or in connection with, an inspection of the register.
(8) The notice must be published in such manner as OFCOM consider appropriate for bringing it to the attention of the persons who, in their opinion, are likely to be affected by it.
(9) OFCOM must make the register available for public inspection—
(a) during such hours, and
(b) on payment of such fees,
as are set out in the notice for the time being in force under subsection (7).
(10) Regulations under this section are subject to negative resolution procedure.
(1) OFCOM may impose an essential condition on—
(a) every postal operator, or
(b) every postal operator of a description specified in the condition.
(2) An essential condition is a condition containing such obligations as OFCOM consider necessary to impose for, or in connection with, any one or more of the following purposes—
(a) safeguarding confidentiality in connection with the sending, conveyance and delivery of letters,
(b) safeguarding security where dangerous goods are transported,
(c) safeguarding the confidentiality of information conveyed,
(d) guarding against the theft or loss of or damage to postal packets, and
(e) securing the delivery of postal packets to the intended addressees.
(1) OFCOM may impose a general access condition on a particular postal operator (or operators).
(2) A general access condition is a condition requiring the operator to do either or both of the following—
(a) to give access to other postal operators, or users of postal services, to the operator's postal infrastructure or any service within the scope of the universal postal service which it provides, and
(b) to maintain a separation for accounting purposes between such different matters relating to access of a kind within paragraph (a) (including proposed or potential access of that kind) as OFCOM may direct.
(3) An operator's “postal infrastructure” includes both physical infrastructure (such as letter boxes) and infrastructure in non-physical form (such as information relating to postcodes or addresses or arrangements made with others for the provision of any service).
(4) OFCOM may impose a general access condition only if it appears to them that the condition is necessary for either or both of the following purposes—
(a) protecting the interests of the users of postal services, and
(b) promoting effective competition.
(5) In deciding what obligations to impose in general access conditions in a particular case, OFCOM must (in addition to taking into account anything relevant for the purpose of performing their duty under section 29) take into account, in particular, the following factors—
(a) the technical and economic viability, having regard to the state of 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 postal operator in relation to the matters in respect of which access is proposed,
(d) the need to secure effective competition in the long term, and
(e) any rights to intellectual property that are relevant to the proposal.
(6) For the purposes of this section a reference to giving a person access to an operator's postal infrastructure includes giving a person an entitlement to use, be provided with or become a party to any services, facilities or arrangements comprised in the infrastructure.
(7) In Schedule 3—
(a) Part 1 makes provision about the kind of matters that may be included in general access conditions, and
(b) Part 2 makes provision about the resolution of access disputes by OFCOM.
(1) OFCOM may impose a consumer protection condition on—
(a) every postal operator, or
(b) every postal operator of a specified description.
(2) A consumer protection condition is a condition requiring the operator to do one or more of the following—
(a) to assume specified liability in respect of specified loss of or damage to specified postal packets,
(b) to establish and maintain procedures, standards and policies with respect to consumer protection matters,...
(c) to make payments relating to qualifying consumer expenses of ... Citizens Advice ... or the General Consumer Council for Northern Ireland ,...
(ca) to make payments relating to such amounts as the Secretary of State considers reasonable in respect of the provision, in or as regards Scotland, of consumer advocacy and advice by, or by agreement with, a public body or the holder of a public office, in relation to users of postal services, and
(d) to make payments relating to qualifying consumer expenses of the Secretary of State.
(3) The reference in subsection (2)(b) to consumer protection matters is to—
(a) the handling of complaints made to postal operators by users of their services,
(b) the resolution of disputes between postal operators and users of their services,
(c) the provision of remedies and redress in respect of matters that form the subject-matter of such complaints or disputes,
(d) the information that is to be made available by postal operators to users of their services about service standards and about the rights of those users, and
(e) anything else appearing to OFCOM to be necessary to secure effective protection for those users.
(4) The reference in subsection (2)(c) to qualifying consumer expenses of Citizens Advice... or the General Consumer Council for Northern Ireland is to—
(a) such proportion of the expenses of Citizens Advice as the Secretary of State considers reasonable having regard to the functions exercisable by it in relation to users of postal services (including expenses which relate to taking on functions transferred from the National Consumer Council, but not including expenses within paragraph (b)),
(b) such proportion of the expenses of Citizens Advice relating to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011 as the Secretary of State considers reasonable having regard to the functions exercisable by Citizens Advice in relation to users of postal services,
(c) such proportion of the expenses of Citizens Advice incurred in connection with its support of any qualifying public consumer advice scheme as the Secretary of State considers reasonable having regard to the functions under the scheme exercisable in relation to users of postal services,
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(g) such proportion of the expenses of the General Consumer Council for Northern Ireland as the Secretary of State considers reasonable having regard to the functions exercisable by it in relation to users of postal services (including expenses which relate to taking on functions transferred from the National Consumer Council).
(4ZA) The reference in subsection (2)(d) to qualifying consumer expenses of the Secretary of State is to—
(a) such proportion of the expenses of the Secretary of State relating to the abolition of the National Consumer Council as the Secretary of State considers reasonable having regard to the functions exercised by the National Consumer Council in relation to users of postal services,
(b) such proportion of the expenses of the Secretary of State relating to the conferring of functions on Citizens Advice, Citizens Advice Scotland and the General Consumer Council for Northern Ireland by the Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc) Order 2014 (S.I. 2014/…) as the Secretary of State considers reasonable having regard to the functions exercisable by any of those bodies in relation to users of postal services, and
(c) such proportion of the expenses of the Secretary of State relating to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011 as the Secretary of State considers reasonable having regard to the functions exercised by the National Consumer Council in relation to users of postal services.
(4A) A qualifying public consumer advice scheme is a scheme that is supported by Citizens Advice ... in a manner that the Competition and Markets Authority is prohibited from using by section 8A of the Enterprise Act 2002.
(5) In imposing a consumer protection condition, OFCOM must (so far as they consider appropriate) secure that—
(a) the procedures for the handling of complaints and the resolution of disputes are easy to use, transparent and effective and otherwise facilitate the settling of disputes fairly and promptly,
(b) users have the right to use those procedures free of charge, and
(c) if a postal operator contravenes a consumer protection condition, the operator follows such procedures as may be required by the condition.
(6) The Secretary of State may direct OFCOM to include provision within subsection (2)(c) , (ca) or (d) in consumer protection conditions.
(7) In this section and section 52 any reference, in relation to postal operators, to users of their services is to users of any of the postal services provided by the operators.
(8) In this section —
...
“specified” means means specified in the consumer protection condition.
52 Provision that may be made by consumer protection conditions
(1) A consumer protection condition may require postal operators to be members of an approved redress scheme.
(2) A “redress scheme” is a scheme under which complaints about postal operators by users of their services may be made to, and investigated and determined by, a person who is independent of postal operators and OFCOM.
(3) A redress scheme is “approved” if it is approved by OFCOM in accordance with Schedule 5.
(4) For the purposes of the law relating to defamation, proceedings under an approved redress scheme are to be treated in the same way as proceedings before a court.
(5) A consumer protection condition may require postal operators—
(a) to provide information to OFCOM with respect to the levels of compliance with the standards for the handling of complaints, and
(b) to publish information about the number of complaints made about them (whether under an approved redress scheme or otherwise) and the way in which the complaints have been dealt with.
(6) Requirements may be contained in the condition as to the times at which, and the manner in which, any information is to be published as a result of subsection (5)(b).
(7) A consumer protection condition imposed on a universal service provider must include a requirement within subsection (5)(b).
Schedule 7 makes provision for the enforcement of regulatory requirements imposed by OFCOM in carrying out their functions in relation to postal services.
(1) Schedule 8 makes provision about the provision of information to OFCOM for the purpose of carrying out their functions in relation to postal services or for related purposes.
(2) In that Schedule—
(a) Part 1 makes provision authorising OFCOM to require information to be provided to them,
(b) Part 2 makes provision for the enforcement of those requirements ..., and
(c) Part 3 contains supplementary provision.
(3) Nothing in Schedule 7 to the Postal Services Act 2000 (disclosure of information) prevents the Postal Services Commission from disclosing information to OFCOM for the purposes of OFCOM's functions in relation to postal services.
56 General restriction on disclosure of information
(1) Information that—
(a) is obtained as a result of this Part, and
(b) relates to the affairs of an individual or to a particular business,
must not be disclosed during the lifetime of the individual or so long as the business is carried on, except as provided by this section.
(2) Disclosure is permitted—
(a) with the consent of the individual or the person for the time being carrying on the business,
(b) for the purpose of facilitating the carrying out by OFCOM of any of their functions,
(c) for the purpose of facilitating the carrying out by the Secretary of State, the Treasury or the Competition and Markets Authority of any of their functions under this Act,
(d) for the purpose of facilitating the carrying out by a prescribed body or other person of any functions under a prescribed enactment,
(e) in connection with the investigation of any criminal offence or for the purposes of any criminal proceedings,
(f) for the purposes of any civil proceedings brought as a result of this Part or any prescribed enactment,
(g) in pursuance of an assimilated obligation, or
(h) in any other prescribed circumstances or for any other prescribed purpose.
(3) In subsection (2) “prescribed” means prescribed by an order of the Secretary of State.
(4) An order under subsection (3) is subject to affirmative resolution procedure.
(5) This section does not apply to information that has been made available to the public by being disclosed in circumstances in which, or for a purpose for which, disclosure is not precluded by this section.
(6) This section also does not apply to information that is subject to the disclosure regime in Part 9 of the Enterprise Act 2002 as a result of—
(a) section 393(8) of the Communications Act 2003 (information obtained by OFCOM in exercise of competition functions), or
(b) section 29(3) of the Consumers, Estate Agents and Redress Act 2007 (information obtained by Citizens Advice etc).
(6A) Nothing in this section prevents the disclosure of information under section 24A or 24B of the Communications Act 2003.
(7) A person who discloses information in contravention of this section commits an offence.
(8) A person guilty of an offence under this section is liable—
(a) on summary conviction, to a fine not exceeding the statutory maximum, or
(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding two years or both.
57 Decisions by OFCOM to impose regulatory conditions, penalties etc
(1) For the purposes of this section a “qualifying decision” means—
(a) a decision to impose or modify a regulatory condition,
(b) a decision to give, modify or withdraw a direction, consent or approval that falls within paragraph 2 of Schedule 6,
(c) a decision to impose a penalty, or give or modify a direction, under any provision of Schedule 4, 7 or 8,
(d) a decision to give or modify a direction under section 89A or 116(2A) of the Postal Services Act 2000 (schemes as to terms and conditions for provision of postal services, and the Postcode Address File), or
(e) a decision to give a direction under section 25(5) of the Consumers, Estate Agents and Redress Act 2007 (enforcement of requirements to give information to the Citizens Advice etc).
(2) A person affected by a qualifying decision may appeal against it to the Competition Appeal Tribunal (“the CAT”).
(3) The means of making an appeal is by sending the CAT a notice of appeal in accordance with rules made under section 15 of the Enterprise Act 2002.
(4) The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.
(5) In determining an appeal under this section the CAT must apply the same principles as would be applied by a court on an application for judicial review.
(6) The CAT must either—
(a) dismiss the appeal, or
(b) quash the whole or part of the qualifying decision to which the appeal relates.
(7) If the CAT quashes the whole or part of a qualifying decision, it may refer the matter back to the person who made the decision with a direction to reconsider and make a new decision in accordance with its ruling.
(8) The CAT may not direct the person who made the decision to take any action that the person would not otherwise have the power to take in relation to the decision.
(9) Except in the case of a decision to impose a penalty, or give or modify a direction, under Schedule 4, 7 or 8, the effect of a qualifying decision is not suspended by the making of an appeal against the decision under this section.
(1) An appeal lies to the appropriate court on any point of law arising from a decision of the CAT under section 57.
(2) An appeal under this section may be brought by—
(a) a party to the proceedings before the CAT, or
(b) any other person who has a sufficient interest in the matter.
(3) An appeal under this section requires the permission of the CAT or the appropriate court.
(4) In this section “the appropriate court” means—
(a) in relation to England and Wales and Northern Ireland, the Court of Appeal, and
(b) in relation to Scotland, the Court of Session.
(1) A person affected by a price control decision may appeal against it by sending a notice of appeal to OFCOM within the period of two months beginning with the day on which the decision is published.
(2) The notice of appeal must set out the grounds of appeal in sufficient detail to indicate the error (or errors) which the appellant contends OFCOM made.
(3) OFCOM must refer any appeal made in accordance with this section (and with rules made under section 60) to the Competition and Markets Authority (“the CMA”) as soon as reasonably practicable after it is made.
(4) The making of an appeal against a decision does not suspend the effect of the decision.
(5) The CMA must determine an appeal before the end of—
(a) the period of 4 months beginning with the day on which OFCOM refer the appeal to it, or
(b) if the decision appealed against is not an initial price control decision and the CMA considers that the circumstances of the case are exceptional, the period of 6 months beginning with that day.
If paragraph (b) applies, the CMA must, before the end of the period mentioned in paragraph (a), publish its reasons for considering that the circumstances of the case are exceptional.
(6) On determining the appeal, the CMA must—
(a) dismiss the appeal,
(b) allow the appeal and make its own decision on the subject matter of the appeal, or
(c) quash the whole or part of the price control decision to which the appeal relates.
(7) The CMA may allow the appeal, or quash the whole or part of the price control decision to which the appeal relates, only if it considers that OFCOM made a material error.
(8) If the CMA quashes the whole or part of a price control decision, it may refer the matter back to OFCOM with a direction to reconsider and make a new decision in accordance with its ruling.
(9) The CMA may not direct OFCOM to take any action that they would not otherwise have the power to take in relation to the decision.
(10) OFCOM must give effect to any decision of the CMA under subsection (6)(b) as soon as is reasonably practicable after it is made.
(11) The CMA may investigate any matter or do any other thing for the purpose of making a decision under subsection (6)(b) or (c).
(12) Any decision made by the CMA under subsection (6) other than one relating to an initial price control decision is a qualifying decision for the purposes of section 57.
(12A) The CMA's functions with respect to an appeal under this section are to be carried out on its behalf by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013
(13) In this section—
a “price control decision” means—
a decision of OFCOM as to the tariffs that are to be used as mentioned in section 36(4) (designated USP condition: tariffs), or
a decision of OFCOM (other than under Part 2 of Schedule 3) as to prices that may be charged for the giving of access under an access condition, and
an “initial price control decision” means—
the first decision of OFCOM within paragraph (a) of the definition of “price control decision”, or
the first decision of OFCOM within paragraph (b) of that definition.
(1) The CMA may make rules about the making, conduct and disposal of appeals under section 59.
(2) The rules may, in particular, impose time limits or other restrictions on—
(a) the taking of evidence at an oral hearing, or
(b) the making of representations or observations at an oral hearing.
(3) The rules may make different provision for different cases.
(4) The CMA must publish the rules in such manner as it considers appropriate for the purpose of bringing them to the attention of those likely to be affected by them.
(5) Before making the rules, the CMA must consult such persons as it considers appropriate.
(6) The Secretary of State may by order—
(a) apply any of sections 109 to 117 of the Enterprise Act 2002 (investigation powers of the CMA), as they had effect immediately before the date on which section 143 of the Digital Markets, Competition and Consumers Act 2024 came into force, with or without modifications, in relation to appeals made under section 59, and
(b) make provision for and in connection with the extension of the period within which appeals must be determined in cases where requirements imposed under section 109 of that Act (as applied) have not been complied with.
(7) An order under subsection (6) applying an enactment under which a criminal or civil penalty could be imposed may not provide for the penalty to be greater than that which could be imposed under the enactment.
(8) An order under subsection (6) is subject to negative resolution procedure.
61 Duties in relation to social and environmental matters
(1) The Secretary of State may from time to time give guidance about the making by OFCOM, in the carrying out of their functions in relation to postal services, of a contribution towards the attainment of any social or environmental policies set out or referred to in the guidance.
(2) OFCOM must, when carrying out their functions in relation to postal services, have regard to any guidance given under subsection (1).
(3) Before giving any such guidance, the Secretary of State must consult—
(a) OFCOM,
(b) Citizens Advice,
(ba) Consumer Scotland,
(bb) if the guidance relates to Northern Ireland, the General Consumer Council for Northern Ireland, and
(c) such other persons as the Secretary of State considers appropriate.
(3A) The Secretary of State is not required to consult Citizens Advice or Consumer Scotland if the draft guidance relates only to Northern Ireland.
(4) A draft of any guidance proposed to be given under subsection (1) must be laid before Parliament.
(5) Guidance may not be given under subsection (1) until after the end of the period of 40 days beginning with the day on which the draft is laid before Parliament.
(6) In calculating that 40 day period, no account is to be taken of any time during which—
(a) Parliament is dissolved or prorogued, or
(b) both Houses of Parliament are adjourned for more than four days.
(7) If, before the end of that 40 day period, either House of Parliament resolves that the guidance should not be given, the Secretary of State must not give it.
(8) The Secretary of State must publish any guidance given under subsection (1) in such way as the Secretary of State considers appropriate.
(1) The Secretary of State may give a direction to a universal service provider requiring the provider to do either or both of the following—
(a) to issue United Kingdom postage stamps bearing the image of Her Majesty (“relevant stamps”) in cases specified in the direction, and
(b) to comply with provision specified in the direction in relation to any relevant stamps that the provider is required or proposes to issue.
(2) A direction under subsection (1)(b) must include provision for relevant stamps not to be issued without the approval of Her Majesty.
(3) The provision that may be contained in a direction under subsection (1)(b) includes—
(a) provision in relation to the design or subject-matter of relevant stamps (including the frequency of designs in any period specified in the direction), and
(b) provision conferring functions on persons (or a committee of persons).
(4) A person to whom a direction has been given has a duty to comply with it.
(5) That duty is enforceable in civil proceedings by the Secretary of State—
(a) for an injunction,
(b) for specific performance of a statutory duty under section 45 of the Court of Session Act 1988, or
(c) for any other appropriate remedy or relief.
Section 403 of the Communications Act 2003 (regulations and orders made by OFCOM) applies to any power of OFCOM under this Part to make an order, a scheme or regulations.
(1) The Postal Services Commission is abolished.
(2) In section 30 of, and Schedule 2 to, the Communications Act 2003 (transfers of property etc from pre-commencement regulators), each reference to a pre-commencement regulator includes the Postal Services Commission.
(3) The following provisions apply in relation to a transfer scheme made by virtue of subsection (2).
(4) The Transfer of Undertakings (Protection of Employment) Regulations 2006 apply to a transfer, by virtue of a transfer scheme, of rights and liabilities under a contract of employment (whether or not the transfer would otherwise be a relevant transfer for the purposes of those regulations).
(5) Where an employee of the Postal Services Commission becomes an employee of OFCOM by virtue of a transfer scheme—
(a) a period of employment with that Commission is to be treated as a period of employment with OFCOM, and
(b) the transfer to OFCOM is not to be treated as a break in service.
(6) The transfer of functions, property, rights or liabilities from the Postal Services Commission to OFCOM under or by virtue of this Act is not to be treated as a merger for accounting purposes.
(1) In this Part—
“access condition” means a USP access condition or a general access condition,
“access point” has the meaning given by section 29(11),
“Citizens Advice” means the National Association of Citizens Advice Bureaux,
“Citizens Advice Scotland” means the Scottish Association of Citizens Advice Bureaux;
“consumer protection condition” has the meaning given by section 51,
“contravention” has the meaning given by subsection (4)(a),
“designated USP condition” has the meaning given by section 36,
“essential condition” has the meaning given by section 49,
“general access condition” has the meaning given by section 50,
“general universal service condition” has the meaning given by section 42,
“letter”—
means any communication in written form on any kind of physical medium to be conveyed to the person or address indicated on the item itself or on its wrapping (excluding any book, catalogue, newspaper or periodical), and
includes a postal packet containing any communication within paragraph (a),
“notification condition” has the meaning given by section 41,
“postal operator” has the meaning given by section 27,
“postal packet” has the meaning given by section 27,
“postal services” has the meaning given by section 27,
“regulatory condition” has the meaning given by section 28,
“universal postal service order” has the meaning given by section 30,
“universal service obligations” has the meaning given by section 36(8),
“universal service provider” means any postal operator for the time being designated under section 35,
“user”, in relation to a postal service, includes—
addressees, and
potential users,
“USP access condition” has the meaning given by section 38, and
“USP accounting condition” has the meaning given by section 39.
(2) In this Part—
(a) references to the provision of a universal postal service are to be read in accordance with sections 30 to 33, and
(b) references to the provision of a service within the scope of the universal postal service are to be read in accordance with section 40.
(3) In the case of a universal service provider who—
(a) provides part of a universal postal service, or
(b) provides a universal postal service, or part of a universal postal service, in a specified area of the United Kingdom,
references in this Part to the provision of a universal postal service are to the provision of that part or to the provision of a universal postal service, or part of a universal postal service, in that area.
(4) For the purposes of this Part—
(a) “contravention” includes a failure to comply (and related expressions are to be read accordingly),
(b) where there is a contravention of an obligation that requires a person to do anything within a particular period or before a particular time, the contravention is to be taken to continue after the end of that period, or after that time, until that thing is done,
(c) references to remedying the consequences of a contravention include paying an amount to a person—
(i) by way of compensation for loss or damage suffered by the person, or
(ii) in respect of annoyance, inconvenience or anxiety to which the person has been put, and
(d) in determining whether a contravention is a repeated contravention for any purposes, a notification of a contravention under any provision is to be ignored if it has been withdrawn before the imposition of a penalty in respect of the matters notified.
(5) Any direction given by the Secretary of State under any provision of this Part—
(a) must be in writing, and
(b) may be varied or revoked by a further direction.
(6) Nothing in any provision of this Part that authorises the inclusion of any particular kind of provision in any regulatory condition or direction is to be read as restricting the generality of the provision that may be included in the condition or direction.
(7) Any power under this Part to provide for the manner in which anything is to be done includes power to provide for the form in which it is to be done.
(8) Any reference in this Part to OFCOM's functions under an enactment includes their power to do anything which appears to them to be incidental or conducive to the carrying out of their functions under that enactment.
Schedule 9 makes transitional provision in connection with the coming into force of this Part and provides for OFCOM to carry out certain functions before the provisions of this Part come into force generally.
(1) As soon as reasonably practicable after the end of the review period, the Secretary of State must—
(a) carry out a review of the provisions of this Part, and
(b) set out the conclusions of the review in a report.
(2) The report must, in particular—
(a) set out the objectives intended to be achieved by the regulatory system established by those provisions,
(b) assess the extent to which those objectives have been achieved, and
(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposed less regulation.
(3) The review period is the period of 5 years beginning with the day on which the provisions of this Part come generally into force.
(4) The Secretary of State must lay the report before Parliament.
(1) In this Part “postal administration order” means an order which—
(a) is made by the court in relation to a company which is a universal service provider, and
(b) directs that, while the order is in force, the company's affairs, business and property are to be managed by a person appointed by the court.
(2) The person appointed in relation to a company for the purposes of a postal administration order is referred to in this Part as the postal administrator of the company.
(3) The postal administrator of a company must—
(a) manage the company's affairs, business and property, and
(b) exercise and perform all the powers and duties conferred or imposed on the postal administrator of the company,
so as to achieve the objective set out in section 69.
(4) In relation to a postal administration order applying to a foreign company, references in this section to the company's affairs, business and property are references to its UK affairs, business and property.
(1) The objective of a postal administration is to secure—
(a) that a universal postal service is provided in accordance with the standards set out in the universal postal service order, and
(b) that it becomes unnecessary, by one or both of the following means, for the postal administration order to remain in force for that purpose.
(2) Those means are—
(a) the rescue as a going concern of the company subject to the order, and
(b) relevant transfers.
(3) A transfer is a “relevant” transfer if it is a transfer as a going concern—
(a) to another company, or
(b) as respects different parts of the undertaking of the company subject to the order, to two or more different companies,
of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the postal administration.
(4) The means by which relevant transfers may be effected include, in particular—
(a) a transfer of the undertaking of the company subject to the order, or of a part of its undertaking, to a wholly-owned subsidiary of that company, and
(b) a transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer within paragraph (a).
In this subsection “wholly-owned subsidiary” has the meaning given by section 1159 of the Companies Act 2006.
(5) The objective of a postal administration may be achieved by relevant transfers to the extent only that—
(a) the rescue as a going concern of the company is not reasonably practicable or is not reasonably practicable without the transfers,
(b) the rescue of the company as a going concern will not achieve the objective of the postal administration or will not do so without the transfers,
(c) the transfers would produce a result for the company's creditors as a whole that is better than the result that would be produced without them, or
(d) the transfers would, without prejudicing the interests of the company's creditors as a whole, produce a result for the company's members as a whole that is better than the result that would be produced without them.
(1) An application for a postal administration order in relation to a company may be made only—
(a) by the Secretary of State, or
(b) with the consent of the Secretary of State, by OFCOM.
(2) The applicant for a postal administration order in relation to a company must give notice of the application to—
(a) every person who has appointed an administrative receiver of the company,
(b) every person who is or may be entitled to appoint an administrative receiver of the company,
(c) every person who is or may be entitled to make an appointment in relation to the company under paragraph 14 of Schedule B1 to the 1986 Act (appointment of administrators by holders of floating charges), and
(d) such other persons as may be prescribed by postal administration rules.
(3) The notice must be given as soon as reasonably practicable after the making of the application.
(4) In this section “administrative receiver” means—
(a) an administrative receiver within the meaning given by section 251 of the 1986 Act for the purposes of Parts 1 to 7 of that Act, or
(b) a person whose functions in relation to a foreign company are equivalent to those of an administrative receiver and relate only to its UK affairs, business and property.
(1) On hearing an application for a postal administration order, the court has the following powers—
(a) it may make the order,
(b) it may dismiss the application,
(c) it may adjourn the hearing conditionally or unconditionally,
(d) it may make an interim order,
(e) it may treat the application as a winding-up petition and make any order the court could make under section 125 of the 1986 Act (power of court on hearing winding-up petition), and
(f) it may make any other order which it thinks appropriate.
(2) The court may make a postal administration order in relation to a company only if it is satisfied—
(a) that the company is unable, or is likely to be unable, to pay its debts, or
(b) that, on a petition by the Secretary of State under section 124A of the 1986 Act, it would be just and equitable (disregarding the objective of the postal administration) to wind up the company in the public interest.
(3) The court may not make a postal administration order on the ground set out in subsection (2)(b) unless the Secretary of State has certified to the court that the case is one in which the Secretary of State considers (disregarding the objective of the postal administration) that it would be appropriate to petition under section 124A of the 1986 Act.
(4) The court has no power to make a postal administration order in relation to a company which—
(a) is in administration under Schedule B1 to the 1986 Act, or
(b) has gone into liquidation (within the meaning of section 247(2) of the 1986 Act).
(5) A postal administration order comes into force—
(a) at the time appointed by the court, or
(b) if no time is appointed by the court, when the order is made.
(6) An interim order under subsection (1)(d) may, in particular—
(a) restrict the exercise of a power of the company or of its directors, or
(b) make provision conferring a discretion on a person qualified to act as an insolvency practitioner in relation to the company.
(7) In the case of a foreign company, subsection (6)(a) is to be read as a reference to restricting the exercise of a power of the company or of its directors—
(a) within the United Kingdom, or
(b) in relation to the company's UK affairs, business or property.
(8) For the purposes of this section a company is unable to pay its debts if—
(a) it is a company which is deemed to be unable to pay its debts under section 123 of the 1986 Act, or
(b) it is an unregistered company which is deemed, as a result of any of sections 222 to 224 of the 1986 Act, to be so unable for the purposes of section 221 of the 1986 Act, or which would be so deemed if it were an unregistered company for the purposes of those sections.
(1) The postal administrator of a company—
(a) is an officer of the court, and
(b) in exercising and performing powers and duties in relation to the company, is the company's agent.
(2) The management by the postal administrator of a company of any of its affairs, business or property must be carried out for the purpose of achieving the objective of the postal administration as quickly and as efficiently as is reasonably practicable.
(3) The postal administrator of a company must exercise and perform powers and duties in the way which, so far as it is consistent with the objective of the postal administration to do so, best protects—
(a) the interests of the company's creditors as a whole, and
(b) subject to those interests, the interests of the company's members as a whole.
(4) A person is not to be the postal administrator of a company unless qualified to act as an insolvency practitioner in relation to the company.
(5) If the court appoints two or more persons as the postal administrator of a company, the appointment must set out—
(a) which (if any) of the powers and duties of a postal administrator are to be exercisable or performed only by the appointees acting jointly,
(b) the circumstances (if any) in which powers and duties of a postal administrator are to be exercisable, or may be performed, by one of the appointees, or by particular appointees, acting alone, and
(c) the circumstances (if any) in which things done in relation to one of the appointees, or in relation to particular appointees, are to be treated as done in relation to all of them.
73 Conduct of administration, transfer schemes etc
(1) Schedule 10 contains provision applying the provisions of Schedule B1 to the 1986 Act, and certain other enactments, to postal administration orders.
(2) Schedule 11 contains provision for transfer schemes to achieve the objective of a postal administration.
(3) The power to make rules under section 411 of the 1986 Act is to apply for the purpose of giving effect to this Part as it applies for the purpose of giving effect to Parts 1 to 7 of that Act (and, accordingly, as if references in that section to those Parts included references to this Part).
(4) Section 413(2) of the 1986 Act (duty to consult Insolvency Rules Committee about rules) is not to apply to rules made under section 411 of the 1986 Act as a result of this section.
(1) This section applies if a person other than the Secretary of State petitions for the winding-up of a company which is a universal service provider.
(2) The court is not to exercise its powers on a winding-up petition unless—
(a) notice of the petition has been served on the Secretary of State and OFCOM, and
(b) a period of at least 14 days has elapsed since the service of the last of those notices to be served.
(3) If an application for a postal administration order in relation to the company is made to the court in accordance with section 70(1) before a winding-up order is made on the petition, the court may exercise its powers under section 71 (instead of exercising its powers on the petition).
(4) References in this section to the court's powers on a winding-up petition are to—
(a) its powers under section 125 of the 1986 Act (other than its power of adjournment), and
(b) its powers under section 135 of the 1986 Act.
(1) A company which is a universal service provider has no power to pass a resolution for voluntary winding up without the permission of the court.
(2) Permission may be granted by the court only on an application made by the company.
(3) The court is not to grant permission unless—
(a) notice of the application has been served on the Secretary of State and OFCOM, and
(b) a period of at least 14 days has elapsed since the service of the last of those notices to be served.
(4) If an application for a postal administration order in relation to the company is made to the court in accordance with section 70(1) after an application for permission under this section has been made and before it is granted, the court may exercise its powers under section 71 (instead of granting permission).
(5) In this section “a resolution for voluntary winding up” has the same meaning as in the 1986 Act.
(1) This section applies if a person other than the Secretary of State makes an ordinary administration application in relation to a company which is a universal service provider.
(2) The court must dismiss the application if—
(a) a postal administration order is in force in relation to the company, or
(b) a postal administration order has been made in relation to the company but is not yet in force.
(3) If subsection (2) does not apply, the court, on hearing the application, must not exercise its powers under paragraph 13 of Schedule B1 to the 1986 Act (other than its power of adjournment) unless—
(a) notice of the application has been served on the Secretary of State and OFCOM,
(b) a period of at least 14 days has elapsed since the service of the last of those notices to be served, and
(c) there is no application for a postal administration order which is outstanding.
(4) Paragraph 44 of Schedule B1 to the 1986 Act (interim moratorium) does not prevent, or require the permission of the court for, the making of an application for a postal administration order.
(5) On the making of a postal administration order in relation to a company, the court must dismiss any ordinary administration application made in relation to the company which is outstanding.
(6) In this section “ordinary administration application” means an application in accordance with paragraph 12 of Schedule B1 to the 1986 Act.
(1) Subsections (2) to (4) make provision about appointments under paragraph 14 or 22 of Schedule B1 to the 1986 Act (powers to appoint administrators) in relation to a company which is a universal service provider.
(2) If in any case—
(a) a postal administration order is in force in relation to the company,
(b) a postal administration order has been made in relation to the company but is not yet in force, or
(c) an application for a postal administration order in relation to the company is outstanding,
a person may not take any step to make an appointment.
(3) In any other case, an appointment takes effect only if each of the following conditions are met.
(4) The conditions are—
(a) that a copy of every document in relation to the appointment that is filed or lodged with the court in accordance with paragraph 18 or 29 of Schedule B1 to the 1986 Act has been served on the Secretary of State and OFCOM,
(b) that a period of 14 days has elapsed since the service of the last of those copies to be served,
(c) that there is no outstanding application to the court for a postal administration order in relation to the company, and
(d) that the making of an application for a postal administration order in relation to the company has not resulted in the making of a postal administration order which is in force or is still to come into force.
(5) Paragraph 44 of Schedule B1 to the 1986 Act (interim moratorium) does not prevent, or require the permission of the court for, the making of an application for a postal administration order at any time before the appointment takes effect.
(1) A person may not take any step to enforce a security over property of a company which is a universal service provider unless—
(a) notice of the intention to do so has been served on the Secretary of State and OFCOM, and
(b) a period of at least 14 days has elapsed since the service of the last of those notices to be served.
(2) In the case of a foreign company which is a universal service provider, the reference to the property of the company is to its property in the United Kingdom.
(1) This section applies if a postal administration order has been made in relation to a company.
(2) The Secretary of State may, with the consent of the Treasury, make grants or loans to the company of such amounts as it appears to the Secretary of State appropriate for achieving the objective of the postal administration.
(3) The grants or loans may be made in whatever manner, and on whatever terms, the Secretary of State considers appropriate.
(4) The terms on which the grants may be made include, in particular, terms requiring the whole or a part of the grants to be repaid to the Secretary of State if there is a contravention of the other terms on which they are made.
(5) The terms on which loans may be made include, in particular, terms requiring—
(a) the loans to be repaid at such times and by such methods as the Secretary of State may, with the consent of the Treasury, from time to time direct, and
(b) interest to be paid on the loans at such rates and at such times as the Secretary of State may, with the consent of the Treasury, from time to time direct.
(6) The Secretary of State must pay sums received as a result of this section into the Consolidated Fund.