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News of the fine comes at a time when Royal Mail’s parent, IDS, is facing a probable takeover by the Czech billionaire Daniel Kretinsky’s EP Group.
In recent years the business has struggled to make money. Its letters business has declined dramatically, with the volume being sent having halved since 2011.
However, last month IDS said its revenues had increased by 10% in the six months to the end of September, compared to the same period in 2023.
It made an operating loss of £26m, compared to £243m the year before.
Ofcom has been looking at ways in which the Universal Service could be reformed. In September, it said it would look at whether changes to second class deliveries, while continuing a six-day-a-week service for first class post, would meet customers’ needs.
It had previously suggested Royal Mail could save hundreds of millions of pounds a year if it reduced its mail deliveries to five or even three days a week.
In its response to Ofcom’s fine, IDS said it was essential that its own efforts to improve services were backed by “urgent reform” of the Universal Service, “restoring it to a level that meets the needs of today’s postal users, not the needs of customers 20 years ago”.
It said this would help to create a “modern, sustainable and reliable” postal service.
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