Consumer redress
New arrangements for consumers came into effect on 1 October 2008 with the establishment of Consumer Focus; extension of the Consumer Direct service to give consumers information and practical advice on energy and postal issues; and the establishment of new consumer redress arrangements obliging energy and postal companies to take greater responsibility for resolving complaints internally.
The new arrangements entailed:
- Creating Consumer Focus through the merger of the National Consumer Council, energywatch and Postwatch. Consumer Focus is a more powerful consumer champion than its predecessors, with stronger powers including the ability to demand information from companies.
- Establishing new consumer redress arrangements obliging energy and postal companies to take greater responsibility for resolving complaints internally. The regulators, Ofgem and Postcomm, are now able to fine companies who fail to meet these tough new standards.
- Where companies and consumers can’t reach agreement on complaints, the new independent Ombudsman will step in. The ombudsman is free for consumers. Unlike energywatch and Postwatch, the new redress schemes have the legal power to enforce a resolution and provide compensation for consumers where appropriate.
- Consumer Direct, the Government funded advice service, now also gives consumers information and practical advice on energy and postal issues. It can be contacted on 08454 04 05 06 or by visiting www.consumerdirect.gov.uk
For further information, please see the guidance to advisors:
New help for consumers of energy and postal services (PDF, 1.49MB)
