Franchise specification - Customer service quality

[ellendune]

The regulator in the Water Industry recently introduced a new customer service incentive into the regulatory system for water and sewerage services.  This brings in points for complaints at different levels from 1 for an unwanted phone call up to 1000 for a complaint to the Cunsumer Council for Water. 

In this case points do not, however, mean prizes.  Those with the least points might get a small percentage premium on their price increase and those with most points a small percentage decrease.  Small percentages of big numbers are however still big sums of money and this does appear to be transforming customer service in the water industry. 

Would it be desirable or practical to introduce this into the rail franchises?

[matt473]

Practical I doubt due to the pass the blame for delay culture that exists on the railway. But maybe a system where each percentage point over benchmarks for satisfaction levels, cancellations, short turn arounds etc. allows more profit to be made by franchise holder. Carrot works better than the stick and maybe if the financial rewards are great enough, TOCs may invest in new rolling stock themselves to minimise cancellations to recieve more cash. Easier to rewards what TOCs can control as opposed to further increasing the pass the blame game TOCs play