- Postal and logistics group Royal Mail has been fined £1.6m by British regulators for failing to meet its delivery targets and overcharging customers for stamps.

Royal Mail is required by regulator Ofcom to deliver at least 93% of first-class post across the UK within one working day of collection.

In the 2018/19 year, 91.5% of first-class post was delivered on time.

Ofcom can consider evidence submitted by Royal Mail of any exceptional circumstances beyond the company's control that may have explained why it missed the target.

'But it did not provide a satisfactory explanation and it did not take sufficient steps to get back on track during the year,' the regulator said.

It had imposed a £1.5m fine for the target miss and an additional £0.1m fine for overcharging customers for second-class stamps between 25 March and 31 March last year.

'We set a price cap for second-class stamps to ensure that an affordable postal service is available to everyone, while keeping the universal service financially sustainable,' Ofcom said.

The price cap was set at 60p between 1 April and 31 March, but Royal Mail upped its price to 61p on 25 March, overcharging customers for seven days.

The company estimated that it overcharged people by around £60k in total as a result, which it was unable to refund.

Ofcom said Royal Mail had since made changes to its compliance processes that it said would prevent the error from happening again.

At 1:15pm: [LON:RMG] Royal Mail PLC share price was +0.68p at 165.98p

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