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Royal Mail Quality of Service Report

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1 March 2011

News Release

HF18
28 February 2011

ROYAL MAIL QUALITY OF SERVICE REPORT

The latest Quality of Service Report, covering quarter three from 6 September to 5 December 2010, is being published today. Royal Mail is also publishing its service performance figures for the Christmas Period from 6 December 2010 to 1 January 2011.

The company’s cumulative performance for First Class Stamped and Metered Mail, the bellwether indicator, was above the target of 93 per cent up to, and including, Period 8*. In period 9 (8 November to 5 December), performance was adversely impacted by the onset of exceptionally severe weather conditions in various parts of the UK.

Despite the onset of very severe weather (see below), Royal Mail was able to maintain a cumulative result for the first three quarters of the year of 92 per cent, against a 93 per cent target for First Class Stamped and Metered Mail. For Second Class Stamped and Metered Mail, Royal Mail maintained a cumulative result of 98.3 per cent against a target of 98.5 per cent for the same period.

The company’s performance during the Christmas period was very significantly impacted by severe and prolonged weather conditions. It was the coldest December across the UK since records began in 1910**. UK road, rail and air services experienced very significant and protracted disruption. Under the terms of the company’s Licence, the Christmas period is not part of the Quality of Service measure.

From 22 November to 9 January, there were only three days that were not impacted by material rail, air or road transport difficulties.*** During the Christmas period, Royal Mail’s daily post bag doubled to 130 million items a day. As the sole delivery operator in parts of the country during this time, Royal Mail also saw an increase in volumes over and above the traditional Christmas uplift.



Quarter Three Performance
The service target for First Class Stamped and Metered Mail arriving the next day is 93.0 per cent. Royal Mail achieved 89.2 per cent for quarter three, with the very bad weather being a significant factor towards the end of the period.

The target for Second Class Stamped and Metered Mail is 98.5 per cent. Royal Mail achieved 97.2 per cent for the quarter. Standard Retail Parcels has a target of 90 per cent. Royal Mail achieved 93.1 per cent.

December Performance
A major contingency programme was put in place throughout the Christmas period. The programme included:

• Investing over £20 million in the biggest weather recovery programme ever undertaken by Royal Mail.
• 20,000 members of staff were taken on for the Christmas period. A further 3,000 were recruited as the weather worsened.
• Around 18,000 extra delivery rounds.
• Hiring additional planes, trains and lorries in a concerted attempt to move the mail.

For this period, the company achieved 33.7 per cent for First Class Stamped and Metered Mail and 76.5 per cent for Second Class Stamped and Metered Mail. The equivalent figures in 2009 were 56 per cent and 91.9 per cent respectively.

At the end of this financial year, Royal Mail will be applying to the regulator for a special exemption in recognition of the severity of the weather conditions that led to the decline of service standards during the quarter three period. The regulator is able to grant Royal Mail an exemption in such circumstances. The company believes that these conditions warrant our application on this occasion.

Mark Higson, Royal Mail’s Managing Director of Operations and Modernisation, said: “Despite doing everything possible to get the mail through in exceptionally difficult circumstances, we were unable to deliver everything to our usual high standards. We apologise to our customers. We hope they understand how hard our staff worked to ensure as many items as possible were delivered before Christmas.”

Ends




For further information:
Richard Stephenson David Simpson Hayley Fowell
Director of Public Relations Director of News Senior External Relations Manager
Royal Mail Group Royal Mail Group Royal Mail Group
020 7250 2468 020 7250 2468 020 7250 2417
07872 815335 07850 705980 07725 446226
richard.m.stephenson@royalmail.com david.simpson@royalmail.com hayley.fowell@royalmail.com

Notes to Editors:
1. The third quarter report covers the period from 6 September to 5 December 2010. The full report will be published on Royal Mail’s website – www.royalmail.com
2. Royal Mail’s Quality of Service is measured independently by Research International, a company with a long track record in this field. The methodology used and the results obtained are verified independently of Royal Mail and Research International. Royal Mail knows of no other measurement of its quality of service that gives results with the geographical coverage and degree of reliability and accuracy in the figures obtained by Research International. This latest report is based on more than 239,600 sample letters, parcels and packets sent to 7,000 addresses.
3. *Quality of Service is reported in 12 ‘periods’ throughout the year. These are set out in the Licence agreement and are as follows:
- Period seven 6 September – 10 October
- Period eight 11 October – 7 November
- Period nine 8 November – 5 December
- Christmas 6 December – 1 January (not included in Licence)
- Period ten 3 January – 16 January
- Period eleven 17 January – 13 February
- Period twelve 14 February – 20 March
4. ** The Met Office.
5. *** Various sources including Met Office, Highways Road information and the Airport Authorities.





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