Over the last two weeks we have been taking Access customers through our proposed plans for introducing a D+3 service into the Access Letters Contract (ALC). I would like to thank customers who have participated. At the sessions we have detailed and discussed the proposed service specifications for a new D+3 service, as well as the changes to the D+2 service specifications ??" all of which would be effective from the date the Universal Service Obligation (USO) regulatory changes take effect, which we expect to be in Summer 2025. By launching a D+3 service it is our intention to maximise the amount of notice we are giving our customers ahead of the USO regulatory changes coming into effect.

The discussions have proven extremely valuable in helping shape a service proposition which meets with customers’ expectations whilst also addressing Royal Mail’s need to realise the cost savings from a new alternate day delivery model in a timely manner to ensure the sustainability of the USO.

We wrote to you on 9 October 2024 to outline the voting process which applies to the introduction of a new service, and to agree which “Customer Segment” you belong to.  As a reminder, under clause 13.2(b)(i) (‘New Products and Services’) of the ALC, we may introduce a new service on 70 days’ notice if 67% of each “Customer Segment” vote in favour of such notice period. If this Acceptance Threshold is not reached then we will give at least 120 days’ notice to introduce the new service.

Today we are commencing the voting process under clause 13.2(b)(i) and you will have until 28 November 2024 to vote either for or against a shorter notice period of 70 days to introduce the new D+3 service. Votes received after this time will not be counted. For the avoidance of doubt, the voting process is related to the notice period for the introduction of the D+3 service only.  

To re-emphasise, despite the formality of completing the voting process, it is our intention to maximise the amount of notice we give customers, and we expect such notice to be considerably more than 120 days before the service goes live. During the recent engagement sessions, customers have asked for as much notice as possible to be able to implement the changes required to deploy the new D+3 service and the changes we are requiring to the D+2 service specifications. We fully appreciate that different customers have their own respective internal lead times for deploying change, as well as your own supply chain who may need to make changes too. Therefore, whilst we are running this formal voting process in accordance with the ALC, we do not intend to deploy such changes until the USO regulatory change takes effect ??" we are working to an assumptive implementation date of 1 July 2025 (in other words we expect (but cannot be certain) that Ofcom’s decision on USO Reform, and the change to the relevant Ofcom Conditions, will take place on 1 July 2025).

Our full proposal can be found here which sets out the technical specification details for the D+3 service, much of which we presented to you in the engagement sessions. Please note that we are still exploring funder which service or services we will offer General Large Letters from July next year. We will notify you of our decision on this at the same time we notify you of the launch of the new D+3 service.

I invite you to submit your vote by emailing ravi.chauhan@royalmail.com by 28 November 2024, by simply stating whether you agree or disagree to a shorter period of 70 days’ notice for Royal Mail to introduce the new D+3 service.  Please note that any nil responses will be marked as abstentions as per clause 13.8(e) of the ALC.

Once the voting window closes on 28 November 2024, we will count the votes and then, shortly after, we intend on formally notifying you of both the introduction of the new D+3 service and the changes to the D+2 service specifications.

We have also put together a technical guide which details the specification requirements for the D+2 service after the USO regulatory changes take effect. This can be found here.