Designated Universal Service Provider Condition 1.10 Consumer Protection Condition USP Access Condition 8.1
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1 Designated Universal Service Provider Condition 1.10 Consumer Protection Condition USP Access Condition 8.1 Quarterly Quality of Service and Complaints Report Quarter 4 Publication date: 11 May 2018
2 NATIONAL QUARTER 4 REPORT CONTENT PAGE Overview of Quality of Service Performance: Quarter Table 1 DUSP 1.10 Domestic and EU standards and performance targets 3 Table 2 DUSP 1.10 First Class Stamped and Metered Delivered in PCA 4 8 Table 3 USPA 8.1 Downstream Access Products 9 Table 4 Consumer Protection Condition : Consumer Complaints 10
3 OVERVIEW OF QUALITY OF SERVICE PERFORMANCE QUARTER In the quarter, the full-year Standards were achieved or exceeded by the Standard for Correctly Delivered Mail and USO Outgoing European mail. The results in the quarter for USO First Class, the geographical Standard for Delivered in the Postcode Areas, the USO Standard for Collections, the USO Standard for Deliveries and Special Delivery were below the full-year target. For USO Second Class, Royal Mail s overall performance of 98.4 per cent was within the 98.5 per cent target range when allowing for the margin of error in sampling. The Company notes the full year outcomes were significantly impacted by a number of exceptional events. These factors included a very challenging industrial relations environment, some very severe weather, Cyber Week falling outside the exemption period and significantly reduced staffing levels caused by the Australian flu outbreak. Royal Mail believes that, if performance was adjusted for these factors, we would have achieved our USO First Class target. Royal Mail will ask Ofcom to take these issues into consideration. It will be for Ofcom to decide. In the year to date, 71 of 118 postcode areas met or exceeded their targets. Allowing for the margin of error in sampling, 95 of 118 postcode areas were within the target range. The Company believes that, if the performance was adjusted for the exceptional events outlined above, an additional 44 postcodes would meet or exceed their targets. This would result in a total of 115 postcodes meeting or exceeding their targets, allowing for the margin of error in sampling. Domestic & Outgoing EU standards and performance targets Qtr 1 compared with Target Qtr 2 compared with Target Qtr 3 compared with Target Qtr 4 compared with Target USO 1st Class % USO 2nd Class % Special Delivery % Postcode Area % Delivered % Of Collection Points Served Daily (USO) % Of Delivery Routes Completed Daily (USO) % Of Items Deemed Correctly Delivered USO Outgoing EU Services D+3 %
4 Notes: 1. DUSP condition 1.9 Tables 1 and 2 of the regulatory conditions detail the domestic and EU standards and performance targets. 2. The Quarter 4 reporting period for all measures was 2 January to 25 March 2018 (12 weeks). 3. Special Delivery has been adjusted for an overstatement of performance due to an incorrect handling of manual entries where no time of delivery has been recorded. 4. PCA performance figures exclude results from any panellists situated in locations that are not scheduled to receive a daily delivery and/or collection. Results from these panellists are, however, included in the national results. 5. The USO 1 st and 2 nd Class performance figures (overleaf and in table 1) include Single Piece PPI mail in addition to Stamped and Metered mail. 6. The percentage of collection points served daily (overleaf and in table 1) and the percentage of collections at or after the final advertised time (table 1) are based on collections from post boxes and Post Office branches only. The following report details results for Quarter 4 against the DUSP condition 1.9 domestic and EU standards and performance targets. In addition, the DUSP condition requires Royal Mail to provide quarterly results against the following standards which do not have specified targets. These are: The percentage of deliveries in the UK which are made by the latest delivery times. The percentage of collections in the UK which are made from post boxes and Post Office branches at or after the final advertised time of collection. USO priority services purchased by postage stamp and by meter: deemed delivered with an actual routing time of D+1 in each of the postcode areas HS, KW and ZE. The report also includes information on the quality of service given to access mail as required by condition USPA 8.1: The percentage of Downstream Access products which are delivered on the first working day after receipt by Royal Mail. The report includes, in accordance with condition CP the quarterly statement on consumer complaints, covering complaints about a USO or regulated product made by a customer who does not have a contract for the product concerned. 2
5 Table 1 DUSP 1.10: Domestic and EU standards and performance targets Domestic & EU standards and performance targets Standard Target Quarter Quarter Cumulative Cumulative % % Accuracy % Accuracy USO 1st Class / /- 0.1 USO 2nd Class / /- 0.1 Special Delivery Postcode Area Target % (Delivered) (in 118/118) 21 of of 118 Percentage Of Collection Points Served Daily 3 118/118) Percentage Of Delivery Routes Completed Daily Percentage Of Items Deemed Correctly Delivered / / USO Outgoing EU Services D / /- 1.1 Percentage of Deliveries by Latest Delivery Time (Urban) 98.8 (Urban) 99.7 (Rural) 99.8 (Rural) Percentage of Collections At or After Final Advertised Time Target Based on full-year cumulative performance, excluding the defined Christmas period. Accuracy Denotes the range within which we can be 95% confident the true Quality of Service lies. For a measured Quality of Service performance of 93.0% and an accuracy of +/- 0.2%, the range would be from 92.8% to 93.2%. 1 Special Delivery is for all Special Delivery Guaranteed by 1PM items. The regulatory target is for Special Delivery Guaranteed by 1PM other than when sold to users having an account with Royal Mail buying the service using their account. The Royal Mail measurement system is unable to separate performance for account and non-account customers in this way. Special Delivery performance is measured using live mail items, not a sample survey and a confidence limit does not apply. 2 The postcode area delivered target is based on 1 st Class Stamped and Metered performance only and the performance for each postcode is shown in table 2. 3 Performance is based on collections from post boxes and Post Office branches only. 4 The Correctly Delivered Mail survey measures all items delivered by Royal Mail and not only USO items. 5 Results are calculated by the International Postal Corporation (IPC), based on the UNEX measurement data. They cover the flows between the UK and the other 27 EU member states. Results for the Christmas period are not included in the Royal Mail reported figures and are therefore not comparable to the UNEX results published annually by IPC on behalf of its European members. 6 Performance is based on collections from post boxes and Post Office branches only. 3
6 Table 2 DUSP 1.10: First Class Stamped and Metered PCA Delivered Performance Postcode Area Q1 C/L Q2 C/L Q3 C/L Q4 C/L Cumulative C/L AB Aberdeen / / / / /- 1.2 AL St Albans / / / / /- 1.0 B Birmingham / / / / /- 0.8 BA Bath / / / / /- 1.1 BB Blackburn & Burnley / / / / /- 1.1 BD Bradford / / / / /- 1.0 BH Bournemouth / / / / /- 1.2 BL Bolton / / / / /- 1.0 BN Brighton / / / / /- 0.9 BR Bromley / / / / /- 1.2 BS Bristol / / / / /- 0.8 BT Northern Ireland / / / / /- 0.9 CA Carlisle / / / / /- 0.9 CB Cambridge / / / / /- 1.1 CF Cardiff / / / / /- 0.8 CH Chester & Deeside / / / / /- 0.9 CM Chelmsford / / / / /- 1.1 CO Colchester / / / / /- 1.2 CR Croydon / / / / /- 1.2 CT Canterbury / / / / /- 1.1 CV Coventry & Warwickshire / / / / /- 1.0 CW Crewe / / / / /- 1.1 DA Dartford / / / / /- 1.2 DD Dundee / / / / /- 1.1 DE Derby / / / / /- 1.0 DG Dumfries / / / / /- 1.2 DH Durham / / / / /- 1.2 = Areas below full-year target = Areas meeting or exceeding full-year target = Exempted from postcode area targets 4
7 Table 2 (Continued) DUSP 1.10: First Class Stamped and Metered PCA Delivered Performance Postcode Area Q1 C/L Q2 C/L Q3 C/L Q4 C/L Cumulative C/L DL Darlington / / / / /- 1.1 DN Doncaster / / / / /- 1.1 DT Dorchester / / / / /- 1.1 DY Dudley / / / / /- 1.1 E London East / / / / /- 1.0 EC City of London / / / / /- 1.1 EH Edinburgh / / / / /- 0.9 EN Enfield / / / / /- 1.2 EX Exeter / / / / /- 1.2 FK Falkirk / / / / /- 1.5 FY Fylde / / / / /- 1.0 G Glasgow / / / / /- 0.8 GL Gloucester / / / / /- 1.0 GU Guildford / / / / /- 0.8 HA Harrow / / / / /- 1.0 HD Huddersfield / / / / /- 1.1 HG Harrogate / / / / /- 1.2 HP Hemel Hempstead / / / / /- 1.0 HR Hereford / / / / /- 1.2 HS Hebrides / / / / /- 2.5 HU Hull / / / / /- 1.2 HX Halifax / / / / /- 1.3 IG Ilford / / / / /- 1.2 IP Ipswich / / / / /- 1.2 IV Inverness / / / / /- 1.3 KA Kilmarnock / / / / /- 1.2 KT Kingston upon Thames / / / / /- 0.9 = Areas below full-year target = Areas meeting or exceeding full-year target = Exempted from postcode area targets 5
8 Table 2 (Continued) DUSP 1.10: First Class Stamped and Metered PCA Delivered Performance Postcode Area Q1 C/L Q2 C/L Q3 C/L Q4 C/L Cumulative C/L KW Kirkwall / / / / /- 1.9 KY Kirkcaldy / / / / /- 1.2 L Liverpool / / / / /- 0.8 LA Lancaster / / / / /- 1.0 LD Llandrindod Wells / / / / /- 1.2 LE Leicester / / / / /- 0.9 LL North Wales / / / / /- 1.0 LN Lincoln / / / / /- 1.3 LS Leeds / / / / /- 0.7 LU Luton / / / / /- 1.1 M Manchester / / / / /- 0.8 ME Maidstone / / / / /- 1.0 MK Milton Keynes / / / / /- 1.1 ML Motherwell / / / / /- 1.3 N London N / / / / /- 0.9 NE Newcastle / / / / /- 0.8 NG Nottingham / / / / /- 0.8 NN Northamptonshire / / / / /- 1.1 NP Newport / / / / /- 1.1 NR Norwich / / / / /- 1.0 NW London NW / / / / /- 1.1 OL Oldham / / / / /- 1.2 OX Oxford / / / / /- 1.0 PA Paisley / / / / /- 1.2 PE Peterborough / / / / /- 0.8 PH Perth / / / / /- 1.3 PL Plymouth / / / / /- 1.0 = Areas below full-year target = Areas meeting or exceeding full-year target = Exempted from postcode area targets 6
9 Table 2 (Continued) DUSP 1.10: First Class Stamped and Metered PCA Delivered Performance Postcode Area Q1 C/L Q2 C/L Q3 C/L Q4 C/L Cumulative C/L PO Portsmouth / / / / /- 1.0 PR Preston / / / / /- 0.9 RG Reading / / / / /- 0.8 RH Redhill / / / / /- 0.9 RM Romford / / / / /- 1.3 S Sheffield / / / / /- 0.8 SA Swansea / / / / /- 0.9 SE London SE / / / / /- 0.9 SG Stevenage / / / / /- 1.1 SK Stockport / / / / /- 1.0 SL Slough / / / / /- 1.1 SM Sutton / / / / /- 1.3 SN Swindon / / / / /- 1.0 SO Southampton / / / / /- 1.0 SP Salisbury / / / / /- 1.3 SR Sunderland / / / / /- 1.2 SS Southend-on-Sea / / / / /- 1.3 ST Stoke-on-Trent / / / / /- 1.1 SW London SW / / / / /- 0.9 SY Shrewsbury / / / / /- 1.3 TA Taunton / / / / /- 1.2 TD Borders / / / / /- 1.4 TF Telford / / / / /- 1.1 TN Tonbridge / / / / /- 1.0 TQ Torquay / / / / /- 1.2 TR Truro / / / / /- 1.2 TS Teesside / / / / /- 1.1 = Areas below full-year target = Areas meeting or exceeding full-year target = Exempted from postcode area targets 7
10 Table 2 (Continued) DUSP 1.10: First Class Stamped and Metered PCA Delivered Performance Postcode Area Q1 C/L Q2 C/L Q3 C/L Q4 C/L Cumulative C/L TW Twickenham / / / / /- 0.9 UB Uxbridge / / / / /- 1.1 W London West / / / / /- 0.9 WA Warrington / / / / /- 0.9 WC London West Central / / / / /- 1.2 WD Watford / / / / /- 1.3 WF Wakefield / / / / /- 1.1 WN Wigan / / / / /- 1.2 WR Worcester / / / / /- 1.3 WS Walsall / / / / /- 1.1 WV Wolverhampton / / / / /- 1.1 YO York / / / / /- 0.9 ZE Lerwick / / / / /- 2.6 = Areas below full-year target = Areas meeting or exceeding full-year target = Exempted from postcode area targets 8
11 Table 3 USPA 8.1 Downstream Access Products Percentage Delivered on First Working Day After Receipt by Royal Mail National Result Quarterly Performance & Confidence Limit Cumulative Performance & Confidence Limit UK / /
12 Consumer Protection Condition : Consumer Complaints Category of Customer Complaint Complaints Received and Completed Complaints Received and Not Completed Recompense Received Loss 51,598 11, ,613 Other 28,034 3, ,452 Redirection 16,056 1,304 69,602 P739 Failure 15,400 1,657 3,080 Delay 15,372 2, ,002 Misdelivery 14, ,115 Delivery Procedure Errors 13,667 1,214 5,013 Redelivery Failure 10,017 1,142 2,507 Damage 8,365 1,520 86,359 Denial of Receipt 8,271 3,121 18,234 Part Loss 4, ,262 Grand Total 186,147 29,189 1,453,239 Note: This report includes complaints about a USO or regulated product made by a customer who does not have a contract for the product concerned. The Recompense Received figures include all payments made to relevant customers in accordance with the product terms and conditions, the compensation scheme for loss, damage and delay, and any goodwill payments made in respect of customer complaints received in the quarter. Royal Mail is required to record any expression of dissatisfaction as a complaint, including phone calls, letters, s and online forms. This means we are obliged to record some matters as complaints even if Royal Mail is not at fault. 10
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