Strengthened consumer protections come into force

The government has this week announced a new regime to better protect consumers

Consumer Focus will be formed through the merger of the National Consumer Council, energywatch and Postwatch. The new body will be a more powerful consumer champion, with much stronger powers than its predecessors - including the ability to demand information from companies.

Energy and post companies will have to take greater responsibility for resolving customers' complaints. The regulators, Ofgem and Postcomm, will now fine companies who fail to meet tough new standards. They will also announce how well companies are handling complaints - giving those that perform the best a competitive advantage

If companies and consumers can't reach agreement on complaints a new independent ombudsman will step in. The ombudsman will be free for consumers, but companies will have to pay hundreds of pounds for every case that reaches this stage. Unlike energywatch and postwatch, the redress schemes have the legal power to enforce resolution and award compensation for consumers

Consumer Direct, the Government funded advice service, will now give consumers information and practical advice on energy and postal issues. It can be contacted on 08454 04 05 06 or by visiting

Business Secretary John Hutton said:

"These changes will help consumers get a better deal.

"One single body, rather than three, means a stronger voice holding business and Government to account. It means a more joined up approach to tackling problems.

"Energy and post companies will have to take greater responsibility for handling complaints or face significant fines. And where complaints can't be resolved voluntarily, new redress schemes give the system teeth."

03 October 2008 © Moneyextra.com

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