§ Mr. Chopeasked the Secretary of State for Trade and Industry when the Monopolies and Mergers Commission report on the revenue collection system of the East Midlands, South-Eastern, North-Eastern and South Western area electricity boards will be published.
§ Mr. FletcherThe report is published today.
The commission was asked to investigate the efficiency and costs of the boards' revenue collection systems; the service given to consumers — including in relation to revenue collection and tariffs — and the treatment of revenue collection costs in the boards' reports and accounts.
The commission finds much to commend but makes a number of suggestions for improving cost control. The commission notes that the boards expect the costs of revenue collection to be reduced in real terms during the next few years. It recommends that each board should set a quantified cost objective for revenue collection, against which performance can be measured, and that the medium term objective for each board should be the achievement of continuing cost reduction in real terms. It also recommends that there should be more detailed budgetary control by the boards themselves.
The commission draws attention to the many differences between the boards' arrangements and procedures for revenue collection and recommends a drive to identify the implement best or improved practices throughout the industry. The commission also considers that there should be greater consistency between the boards with regard to measures of performance.
The commission considers that the boards should publish more information about their revenue collection costs and about standing charges.
The commission records the boards' view that advising consumers and answering queries are an integral part of their functions and are consistent with the increasing emphasis which they place on customer care. The report notes the difficulties of quantifying customer satisfaction but expresses the hope that continuing co-operation between the boards and the consultative councils will lead to great consistency in the recording of customer complaints, which could then give a somewhat better indication of customer satisfaction. The commission broadly endorses the boards' policies of developing payment schemes, partly to help customers who have difficulty in paying their electricity bills. The commission also recommends that the boards should follow the Electricity Council's guide on investment appraisal and should conduct their appraisals in a uniform way.
217WFinally, the commission concludes that none of the four boards is pursuing a course of conduct which operates against the public interest. The boards will be producing their initial responses to the report in about three to four months and my right hon. Friend the Secretary of State for Energy will make a statement on these at that time.
I should like to take this opportunity to thank the commission for a worthwhile and useful report on a subject which is of direct interest to all electricity consumers.