Energy News

Consumer Focus goes live

Thursday 9 October, 2008

By garnet@consumerchoices.co.uk

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New energy watchdog Consumer Focus went live last week, taking over from EnergyWatch.

One of the first issues that it will focus on is fuel poverty - pushing for a fairer deal for energy consumers to avert what it says will become a “national crisis” unless urgent action is taken.

The number of families in fuel poverty - where more than 10 per cent of household income is spent on fuel - has increased by one million to 3.5 million since 2005 according to recent Government figures, but Consumer Focus has said it wants to “see measures that both tackle immediate needs and help stamp out fuel poverty in the long-term”.

Consumer Focus was created through the merger of three consumer organisations - EnergyWatch, PostWatch and the National Consumer Council.

Although the new watchdog has new legislative powers to investigate any consumer complaint if it is of “wider interest”, it’s immediate interest is focused on the energy markets, which have seen massive price hikes over the past year - at a time when consumers are already struggling with the credit crunch.

Ed Mayo, chief executive of Consumer Focus, said: “Customers across the country will be seriously worried about fighting escalating bills through winter while the regulator [Ofgem] consults with industry. We urge energy companies to take action now by boosting their social tariffs.”

“Ofgem has gone some way to highlight action to bring about fairer pricing but we remain concerned that there is a lack of true competition across the country. Ofgem should step up its work to bring more competition among the big six, encourage new entrants and increase trading or consumers will be at risk of not seeing sustained improvements,” he concluded.

Chris Eagle, EnergyChoices.co.uk financial director, said: “Mayo is right to be concerned about the effects of rising energy bills on vulnerable customers - many of whom can’t take advantage of the savings made by switching because they’re on a pre-payment meter, or are not online so can’t access the best deals.

“It’s vital Consumer Focus keeps the pressure on to ensure that Ofgem’s recommendations for fairer energy prices for all are put into action as soon as possible.”