Variations and Trends in
Postal Regulatory
Oversight

Oversight of the Universal Service Obligation (USO)

• For some countries, the USO is fully defined in national law. However, the regulator can influence decisions about the USO through a role in advising policymakers or it may have the authority to determine the parameters of at least one aspect of the USO.

• The U.S. postal regulatory framework is different in that the Postal Service itself can set most USO targets except the six-day delivery mandate.

Price Oversight

Ex ante review: The regulator reviews proposed price changes before they take effect to ensure compliance with the law and guiding principles, such as affordability or cost orientation.

Price Oversight

Ex ante review with price cap: Ex ante oversight can be done through a price cap, with the regulator verifying that proposed new prices fall within the rate authority provided under the cap. The cap formula can be set by law or regulations or established by the regulator.

Price Oversight

Ex post review: In some countries, a regulator only reviews price changes after implementation by the national post. The regulator may then order corrective action if the pricing is found to be noncompliant with laws and regulations. 

Price Oversight

In some countries, the postal regulator does not oversee prices. Another government entity may have that responsibility.

Price Oversight in the United States

• There is ex ante review with a price cap for Market Dominant products. There is a less constraining ex ante review for parcels to ensure prices cover costs.

• The PRC, not the law, defines the price setting mechanism for Market Dominant (monopoly) products. The U.K. is the only other country in our comparison set with a similar authority.

• The PRC’s price cap applies to a larger percentage of postal volume than is the case for the seven largest European countries in our comparison set that implement price caps.

Ensuring Universal Access to the Postal Network

• Most regulators monitor posts’ compliance with access requirements; some are empowered to go beyond monitoring and can make decisions regarding the location of postal access points, such as post offices or collection boxes.

• The U.S. regulatory framework does not include specific targets regarding access to the postal network, as in the case in many other countries.

• The PRC cannot reverse a Postal Service decision to close or consolidate a post office but can return that decision to USPS if it finds the agency has not followed applicable laws.

Responding to Customer Complaints

• Can consist of advising and reporting on complaints received by the national post, or may involve directly handling complaints.

• Like some other regulators, the PRC hears complaints about USPS compliance with rules governing rates, service, and competition.

Enforcement and Fines

• Most regulators can levy fines if a post or delivery company fails to comply with an order or regulation.

• The PRC has comparatively limited enforcement powers and has never fined the Postal Service, although it has the legal authority to do so.

Market Entry, Competition, and Commercial Contracts

• Unlike other postal regulators in our comparison set, the PRC does not have a role granting authorizations and licenses.

• The PRC reviews Postal Service accounts to verify there is no cross-subsidization.

• The PRC is unique among postal regulators in approving commercial contracts (Negotiated Service Agreements).