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Royal Mail blamed disruptions related to the pandemic, while the regulator concluded the company was not in breach of its regulatory obligations.Ī total of 18 days of strikes by Royal Mail postal workers between August and December cost the parcels and postal company more than 200 million pounds ($252.42 million). Ofcom opened a similar investigation last year over the company's performance in the 2021-2022 year.

"If it does not provide a satisfactory explanation and we determine that Royal Mail has failed to comply with its obligations, we may consider whether to impose a financial penalty."

"In deciding whether the company is in breach of its obligations, we will consider if there were any exceptional events – beyond the company's control – that may have explained why it missed its targets," Ofcom said in a statement. In its quality of service report released on Monday, Royal Mail said that 73.7% of first class mail was delivered within one working day, compared with a universal service obligation (USO) target of 93%. Royal Mail blamed union disputes that led to strikes for its failure to meet the targets for the year to end-March, 2023.

May 15 (Reuters) - Ofcom, Britain's communications regulator, said it launched an investigation on Monday into Royal Mail's failure to meet delivery targets over the past year, adding it would consider imposing a financial penalty.