Guernsey Post is having a Christmas rate of 10p

It comes as the island's Office of Utility Regulation (OUR) says that the company is meeting targets set for it after an investigation into a series postal service failures over Christmas 2002.

Guernsey Post had welcomed the targets, believing them to be stringent but achievable.

However, managing director Mike Hall said there were still tough challenges ahead and no room for complacency.

The universal service obligation is now being fully met Regina Finn, Office of Utility Regulation

A part of its work with the OUR to ensure standards, Guernsey Post has agreed to a special Christmas rate of 10p for mail posted within the Bailiwick.

The price change is a requirement by the OUR as redress to customers who were affected by the problems from Christmas 2002.

The OUR has also set its targets for quality of service which will apply for the next three years, starting on 1 October.

In the first year, the company must ensure that 86% of all mail posted in the Bailiwick is delivered in the Bailiwick on the next working day, rising to 93% in year three.

Targets have also been set for mail to and from Jersey and the UK, but they are taking account of the effects of the weather.

Of the original targets, OUR Director General Regina Finn said: "I am pleased to be able to confirm that Guernsey Post has met the requirements of the directions, and, in particular, that the universal service obligation is now being fully met."