§ Mr. BreedTo ask the Secretary of State for Trade and Industry if his proposals for the public utilities to link boardroom pay to consumer performance standards will include linkage with the protection of vulnerable consumers; and if he will make a statement. [54057]
§ Mr. Mandelson[holding answer 31 July 1998]: The Government's proposals for encouraging a direct link between boardroom pay and consumer standards (set out in their response to the consultation on the Green Paper, A Fair Deal for Consumers: Modernising the Framework for Utility Regulation) will require price-regulated utility 1042W companies to disclose the nature of any links between the pay of the directors of the regulated business, and the service standards attained by that business, and if there is no such link, that fact. The proposals do not involve Government determining the nature of these links, which will be for individual regulated companies to decide.
Minimum consumer performance standards are set for utility companies by the regulators following public consultation. These standards are concerned mainly with standards of service to all consumers, although a small number relate to the disadvantaged. Obligations to provide special services to the disadvantaged are generally imposed by the regulator through licence conditions, enhanced in some areas with voluntary industry initiatives. Licence conditions can be enforced in the event of a breach.