New consumer body to make tackling fuel poverty 'top priority' » Housing » 24dash.com

An organisation being set up to champion the interests of consumers will concern itself strongly with those who are suffering because of energy price rises, a minister said today.

Consumer Focus will have a dedicated unit helping people who are vulnerable to disconnection, or who have been disconnected.

Consumer affairs minister Gareth Thomas said: "The organisation, which starts work on October 1, will be formed through the merger of the National Consumer Council, energywatch, and Postwatch, and receive funding of £15 million a year."

Mr Thomas told a briefing in London: "We will want it to look at promoting competition in energy markets for all consumers, but especially for those who are fuel-poor."

It would also be expected to look at such issues as the interests of consumers during the restructuring of the Post Office network.

The organisation is being created as part of the Consumers, Estate Agents and Redress Act which became law last year.

Also from October 1, under the same Act, there will be ombudsmen in place to rule on complaints in the energy and postal fields, while energy and post companies will have to comply with new complaint handling standards drawn up by the regulators Ofgem and Postcomm.

Mr Thomas said: "After eight weeks, any unresolved consumer and small business complaint will be sent to the ombudsman, who will resolve the complaint."

Ed Mayo, chief executive of the new organisation, said: "It feels like the right time to launch a new consumer organisation to be onside with people just as things are beginning to get tough, because the consumer agenda is almost a survival agenda for some people, including many elderly people. We do believe we can make a difference."

He said the organisation would have the power to explore complaints of general interest across the economy, and to ask information of companies on key issues of consumer concern, so it would be a "watchdog with teeth".

It would be addressing the issue of why prices were swift to go up, but slow to come down.

"We've got that in the mortgage market, and in petrol prices, oil markets are volatile. Recognising that there are global forces at work, we would like to see prices come down when they can," he said.

He confirmed the organisation will be campaigning against the closure of post offices, and would also look at the provision - or lack of it - of other local services.

Consumer Focus organisations will also be set up by similar mergers in Scotland, Wales and Northern Ireland, and they will have representation on the Consumer Focus board, Mr Thomas said.

Funding for the new organisation comes from the Government's Department for Business, Enterprise and Regulatory Reform (£5.9 million), and the gas, electricity and postal industries.