Utilities Bill - continued        House of Commons
PART IIA, OTHER FUNCTIONS OF COUNCIL - continued

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Remuneration and service standards
Links between directors' pay and service standards.     99. After section 27L of the 1984 Act there is inserted-
 
 
"Remuneration and service standards.     27M. - (1) This section applies to any company which is authorised by a licence granted under section 7 to carry on activities subject to price regulation.
 
    (2) As soon as reasonably practicable after the end of each financial year of the company it must make a statement to the Authority-
 
 
    (a) disclosing whether or not remuneration has been paid or become due during that financial year to the directors of the company as a result of arrangements falling within subsection (3); and
 
    (b) where such remuneration has been paid or become due, describing the arrangements and the remuneration.
      (3) Arrangements fall within this subsection if they are arrangements for linking the remuneration of the directors of the company to levels of performance as respects service standards in connection with activities subject to price regulation.
 
      (4) A description under subsection (2)(b) must include in particular-
 
 
    (a) a statement of when the arrangements were made;
 
    (b) a description of the service standards in question;
 
    (c) an explanation of the means by which the levels of performance as respects those service standards are assessed; and
 
    (d) an explanation of how the remuneration was calculated.
      (5) The statement required by subsection (2) must also state-
 
 
    (a) whether or not there are in force in respect of the financial year during which the statement is made arrangements falling within subsection (3); or
 
    (b) if not, whether the company intends that such arrangements will be in force at some time during that financial year,
  and if there are, or it is intended that there will be, such arrangements in force the statement must describe those arrangements.
 
      (6) A description under subsection (5) must-
 
 
    (a) include in particular the matters listed in subsection (4)(a), (b) and (c); and
 
    (b) where the arrangements described are different from any arrangements described under subsection (2)(b), state the likely effect of those differences on the remuneration of each director of the company.
      (7) The statement required by subsection (2) must be made to the Authority in such manner as may be required by the Authority.
 
      (8) The statement required by subsection (2)-
 
 
    (a) must be published by the company making the statement in such manner as it reasonably considers will secure adequate publicity for it; and
 
    (b) may be published by the Authority in such manner as it may consider appropriate.
      (9) The duty of a company under this section applies in respect of any person who has at any time been a director of the company.
 
      (10) In this section-
 
 
    "activities subject to price regulation", in relation to any company, are activities for which-
 
      (a) a maximum price which may be charged by the company, or a method for calculating such a maximum price; or
 
      (b) a maximum revenue which may be received by the company, or a method for calculating such a maximum revenue,
 
    is determined by or under the licence granted under section 7;
 
    "company" means a company within the meaning of the Companies Act 1985 which is limited by shares;
 
    "remuneration" in relation to a director of a company-
 
      (a) means any form of payment, consideration or other benefit (including pension benefit), paid or due to or in respect of the director; and
 
      (b) includes remuneration in respect of any of his services while a director of the company;
 
    "service standards" in relation to any company, means standards relating to the quality of service received by customers or potential customers of the company, including any such standards which are-
 
      (a) set by or under any conditions included in a licence granted under section 7;
 
      (b) prescribed by the Authority in regulations made under section 27A(1);
 
      (c) determined by the Authority under section 27B(1); or
 
      (d) set or agreed to by the company.
Enforcement of disclosure requirements.     27N. Sections 16 to 18 shall apply to a company to which section 27M applies as if it were a condition of the licence granted under section 7 that the company shall comply with the requirements of section 27M.".
 
 
Miscellaneous
Reasons for Authority's decisions under the 1984 Act.     100. After section 19 of the 1984 Act (register of licences and orders) there is inserted-
 
 
"Reasons for decisions.     19A. - (1) This section applies to the following decisions of the Authority, namely-
 
    (a) the revocation of a licence granted to a particular person;
 
    (b) the modification of the conditions of a licence;
 
    (c) the giving of any directions or consent in pursuance of a condition included in a licence by virtue of section 7(6)(a) or (b);
 
    (d) the determination of a question referred in pursuance of a condition included in a licence by virtue of section 7(6)(c);
 
    (e) the revocation of a final order or of a provisional order which has been confirmed.
      (2) As soon as reasonably practicable after making such a decision the Authority shall give notice of the reasons for the decision.
 
      (3) Notice under subsection (2) shall be given by-
 
 
    (a) publishing it in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and
 
    (b) in the case of a notice containing reasons for a decision relating to a licence granted to a particular person, by serving a copy of the notice on that person.
      (4) In giving notice under this section the Authority shall have regard to the need for excluding, so far as that is practicable, the matters specified in section 48(2)(a) and (b).
 
      (5) This section does not apply in relation to-
 
 
    (a) a decision of the Authority resulting in any provision which the Secretary of State has under section 19(3) directed the Authority not to enter in the register required to be kept under that section; or
 
    (b) a decision made by the Authority in the interests of national security.".
Standards of performance by designated operators: procedures.     101. After section 27B of the 1984 Act there is inserted-
 
 
"Procedures for prescribing or determining standards of performance.     27BA. - (1) Before prescribing standards of performance under section 27A, or determining standards of performance under section 27B, the Authority shall-
 
    (a) arrange for such research as the Authority considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and considering the results;
 
    (b) publish a notice of his proposals in accordance with subsections (2) and (3) and consider any representations which are duly made in respect of those proposals; and
 
    (c) consult the Council, the designated operator concerned and persons or bodies appearing to the Authority to be representative of persons likely to be affected by the regulations or determination.
      (2) The notice required by subsection (1)(b) is a notice-
 
 
    (a) stating that the Authority proposes to prescribe or determine standards of performance and setting out the standards of performance proposed;
 
    (b) stating the reasons why it proposes to prescribe or determine those standards of performance; and
 
    (c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations with respect to the proposals may be made.
      (3) A notice required by subsection (1)(b) shall be published in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of those likely to be affected by the proposals.
 
      (4) The Authority shall make arrangements for securing that notices under subsection (1)(b), regulations under section 33A or 33AA and determinations under section 33B or 33BA are made available to the public by whatever means it considers appropriate."
 
Systemless service providers.     102. - (1) Where the Authority is satisfied that a systemless service provider has failed or is failing to comply with any obligation imposed by or under the Telecommunications (Open Network Provision)(Voice Telephony) Regulations 1998 the Authority may impose on the operator a penalty of such amount as is reasonable in all the circumstances of the case.
 
      (2) In subsection (1) "systemless service provider" has the meaning given by regulation 2(1) of the Telecommunications (Open Network Provision)(Voice Telephony) Regulations 1998.
 
      (3) The following provisions of the 1984 Act-
 
 
    (a) subsections (3) to (9) of section 18A (power to impose financial penalties);
 
    (b) sections 18B to 18F (provisions supplementary to section 18A),
  apply in relation to the imposition of a penalty under subsection (1) as if it were an imposition of a penalty under section 18A(1) of that Act.
 
      (4) For the purposes of subsection (3)-
 
 
    (a) for "operator", in each place where it appears in the provisions mentioned in that subsection, there is substituted "systemless service provider"; and
 
    (b) for paragraph (b) in subsections (3) and (5) of the section 18A mentioned in that subsection there is substituted-
 
    "(b) setting out the obligation in question;".
Interpretation and extent of Part II.     103. - (1) In this Part-
 
 
    "Authority" means the Telecommunications Authority;
 
    "Council" means the Telecommunications Council;
 
    "the 1984 Act" means the Telecommunications Act 1984.
      (2) Expressions used in this Part and in the 1984 Act have, unless the context otherwise requires, the same meaning as in that Act.
 
      (3) This Part extends to Northern Ireland.
 
 
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