Postcomm sets up financial penalty regime

25 February 2002

Following consultation, Postcomm today published a statement of the policy under which it may impose financial penalties on postal licence holders who contravene their licence conditions.

The starting point in deciding the level of penalty following a licence contravention will be an assessment of the financial benefit obtained by the holder, directly or indirectly, from the contravention. That assessment may be increased for aggravating factors or decreased for mitigating factors. The aim will be to ensure that licence holders do not gain from licence contraventions.

Decisions will be preceded by an investigation and processes to ensure fairness, which may involve public hearings.

Notes for editors

In July 2001 Postcomm published a consultation document in which it set out its proposals for a statement of policy on financial penalties. Today’s decision document sets out the points made in response to that paper and Postcomm’s decision in the light of those points.

The document: Financial Penalties: Statement of Policy, is available from Postcomm at 6 Hercules Road, London, SE1 7DB.

More information on Postcomm's financial penalty regime.