More than two million households in Scotland should benefit from new legislation aimed at gas, electricity and telecoms companies, according to the government.

Electricity bills will be cut by 10% under the range of reforms announced by Trade and Industry Secretary Stephen Byers.

A series of new protections for customers are included in the Utilities Bill, including new consumer councils for electricity, gas, water and telecoms.

Under the plans companies could be fined large sums, running into millions of pounds, for bad practices such as mis-selling or for interruptions to supplies.

New consumer councils

Firms will also have to publish links between directors' pay and quality of service in a move aimed at tackling continuing controversy over "fat cat" salaries.

The bill contains proposals for a new objective for regulators to protect the interests of consumers.

Mr Byers said the new consumer councils would make it easier for customers to make a complaint and check they were getting a good deal.

It was time to modernise utility regulation, 15 years after the first utility - British Telecom - was privatised, he added.

New powers will allow regulators to impose financial penalties for breaches of licence conditions.

The bill will also require companies to disclose how they link directors' pay to levels of customer service. Firms will have to disclose figures as soon as possible after the end of their financial year.

Union call for safety inquiry

Mr Byers said the bill would tackle fuel poverty, giving the government reserve powers to help disadvantaged gas and electricity consumers.

Scottish and Southern Energy said they it have to study the details of the bill but Scottish Power welcomed anything which encouraged competition in the marketplace.

Unison welcomed the focus on consumers but called for an investigation into the safety impact of recent job cuts by water and electricity firms.

"The industry cannot go on promising further price cuts at the expense of jobs and not expect there to be serious concerns over public safety," said deputy general secretary Dave Prentis.