Companies such as DHL could play a bigger part in postal deliveries following the OUR’s decision to remove most of Guernsey Post’s reserved area. (Picture by Tom Tardif, 0893802)

GUERNSEY Post has a year to address its inefficiencies or face a further reduction of its monopoly, Healthspan has warned.

The company responded yesterday to news that the States-owned mail service will face increased competition after the Office of Utility Regulation reduced its ‘reserved area’ of the market.

Guernsey Post will, from April, have a monopoly only over letters and large letters costing less than £1 to post.

The current reserved area gives it a monopoly over all types of mail costing less than £1.35. Packages and packets will now be open to full competition.

Healthspan backed the OUR’s decision to reduce the reserved area, but warned that bulk mailers would demand a further reduction unless Guernsey Post improved.

‘Healthspan welcomes the news of the OUR decision to introduce pricing in proportion, the opportunity for downstream access for bulk packets and the reduction of the reserved area,’ said operations director Chris Jackson.

‘The OUR has effectively given GPL a time window in which to address some of its cost structure issues, as pressure will continue to grow to be competitive and further reduce the reserved area.’