Press Release - Energywatch and Postwatch: Helping and
Protecting Consumers
15 October 2004
Sir John Bourn, Head of the National Audit Office, told
Parliament today that Energywatch and Postwatch have achieved
benefits for consumers but they need to do more to show the extent
of these benefits. Over their first three years, Energywatch and
Postwatch have successfully established their organisations,
developed efficient systems to handle customer complaints and
sought to address major consumer problems in the energy and postal
sectors. But today’s report highlights that there is scope to
increase and demonstrate more clearly those benefits, and reduce
costs.
Energywatch and Postwatch’s biggest single task has been to
investigate complaints referred by consumers who are not satisfied
with their service provider’s response. In 2003-04 Energywatch
received 87,600 complaints, showing that consumers faced problems
with the accuracy and timeliness of their bills, and the process of
switching supplier. Postwatch received 27,500 complaints, showing
particular problems with lost mail and mis-delivery. Both have
developed efficient systems for handling complaints and have added
value for consumers. However, neither body evaluates the consumer
benefit from this work in a systematic manner, such as the level of
compensation achieved.
Energywatch and Postwatch have no regulatory powers and have to
rely on influence to affect the decisions of service providers, the
sector regulators and government. Each has sought to address the
major issues faced by consumers in the energy and postal markets;
for example, Energywatch has campaigned to eradicate selling
malpractices and Postwatch has reviewed the Government’s programme
to reduce the number of urban post offices. However, neither has
undertaken a comprehensive analysis of consumer needs, or the
factors which influence consumer behaviour. As a result, there is a
risk of failing to focus on all of the important areas for
consumers and particular sub-groups such as the elderly or low
income groups, or the needs of small businesses.
In their first three years, Energywatch has spent
£57 million, including £12 million on closing down its
predecessor bodies. Postwatch has spent £27 million. There is
scope to reduce annual running costs; for example, by sharing the
provision of administrative and support functions between consumer
bodies. Energywatch and Postwatch have a network of regional
offices and today’s report encourages them to evaluate whether the
benefits of consumer representation in the regions could be
achieved at a lower cost.
Sir John Bourn said today:
"I applaud the efforts of Energywatch and Postwatch to
protect and speak up for consumers. It is important now that these
bodies seek to evaluate their impact more fully to learn lessons
for their future. I am encouraged that they have adopted a positive
response to the recommendations and are taking action to improve
their performance."
Notes for Editors
- Energywatch and Postwatch were established in 2000 as
independent bodies to promote and protect the consumer interests in
their respective markets. They were established to strengthen
consumer representation in the energy and postal markets and to
ensure that consumers have an effective and influential voice
within the regulatory system. There statutory duties are to:
investigate complaints referred by consumers not satisfied with a
company’s response; to represent the views of consumers; and to
provide advice and information for consumers.
- Press notices and reports are available from the date of
publication on the NAO website,
which is now at www.nao.org.uk.Hard copies can be
obtained from The Stationery Office
on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
Head of the National Audit Office which employs some 800 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 59/04
All enquiries to Mark Strathdene, NAO Press Office:
Tel: 020 7798 7183
Mobile: 07748 181693