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Black Friday may mean Royal Mail allowed to make more late deliveries

Royal Mail (LSE: RMG.L - news) may be allowed to make more late deliveries because of the impact of Black Friday, under changes being considered by Ofcom.

It is weighing up whether to extend an exemption to delivery targets that currently applies in December when volumes are much higher because of Christmas.

The postal firm missed its target of delivering 93% of first class mail within one day in the last financial year but was not issued with a fine by Ofcom.

That was because of "circumstances beyond Royal Mail's control" including the surge in online deliveries around Black Friday, the US discounting day that has taken hold in the UK in recent years.

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Ofcom said: "Royal Mail is exempt from performance targets during December, to reflect the volume of pre-Christmas deliveries.

"But promotional days such as Black Friday and Cyber Monday usually fall in November.

"So we are now considering whether any changes to the rules are needed to reflect these shifting online shopping habits.

"However, Ofcom expects Royal Mail to hit the delivery targets it is set."

Royal Mail targets include the 93% benchmark for next-day first class delivery and for 98.5% of second class mail to be delivered within three working days.

The proposal by Ofcom comes days after it was announced that stamp prices were to increase from later this month.

It was announced as the regulator concluded a review of Royal Mail and its universal service obligation and decided the current framework for regulation would be extended from 2019 to 2022.

Ofcom said it had decided not to impose new controls on prices but it would tighten the rules about how it sells wholesale services to rival operators.

Jonathan Oxley, Ofcom competition director, said: "We know people value the universal postal service and we will continue to ensure that it remains effective.

"Our review has shown that current rules are generally working well for companies and households.

"Royal Mail still has room to improve.

"So we'll keep a very close eye on all aspects of the company's performance, and step in if we need to protect consumers from high prices."

Royal Mail said it was reviewing Ofcom's statement and would respond in due course.