Regulatory statistics

Price control
Under the company’s licence, there are restrictions on the prices it may charge for its main switched telephone services. The company’s performance against this price constraint, which is linked to the annual movement in the retail price index (RPI), is shown below.

YEAR COMMENCING 1 AUGUST

1991 1992 1993 1994 1995

% RPI movement for the relevant period (a) 5.84 3.88 1.22 2.62 3.52
RPI formula in effect (6.25) (6.25) (7.50) (7.50) (7.50)
% required reduction in prices (b) (0.23) (0.95) (c) (6.94) (4.86) (1.38)
% reduction in prices overall (0.73) (0.47) (6.95) (7.35) (0.02) (d)


(a) Annual increase in RPI to previous June.

(b) After permitted carry forward of any unused allowance or shortfall from previous years.

(c) After adjustment for a shortfall in directory enquiry revenue in the years commencing 1 August 1990 and 1991.

(d) Reductions implemented to 21 May 1996; a further reduction of 1.36% is required to be implemented before 31 July 1996.

Exchange line disconnections for non-payment of bills YEAR ENDED 31 MARCH 1996
April May June July Aug Sep

Business (’000) 14 18 17 18 17 19
Residential (’000) 52 75 73 68 74 71


Total disconnections (’000) 66 93 90 86 91 90


Oct Nov Dec Jan Feb Mar

Business (’000) 19 19 13 25 25 20
Residential (’000) 79 69 46 96 70 62


Total disconnections (’000) 98 88 59 121 95 82


BT’s policy is not to disconnect customers for non-payment of bills unless 28 days have elapsed from the despatch of the relevant bill, except in cases of suspected fraud. Customers who are late in paying receive at least two reminders from BT, one of which is normally given by telephone, before the company considers disconnection. BT takes this action only as a last resort after giving customers an opportunity to agree revised payment plans.
Financial, operational and regulatory statistics have been restated where necessary to provide consistency with the presentation of the 1996 figures.
Contents Next page