Conclusions and recommendations
1. It is not sufficient to rely on complaints
as a way of understanding what concerns consumers.
Complainants may not be representative of the full range of consumer
experience as a whole. Energywatch and Postwatch should undertake
more research into consumer concerns, focusing in particular on
the needs and problems of the elderly and low income groups.
2. Energywatch and Postwatch are unable to
say whether those who suffer poor service are more likely also
to be socially or economically disadvantaged.
And they have not tried to quantify the losses suffered by consumers
from poor quality of service. They should research the relationship
between deprived areas and poor quality of service, starting with
an analysis of the postcodes from which they have received complaints.
3. Energywatch and Postwatch should provide
better measures of the benefits they have achieved for consumers.
Energywatch and Postwatch have only recently
started to gather data on the compensation they achieve on behalf
of consumers. They should record and report this information systematically.
4. The role of Energywatch and Postwatch is
not well understood by consumers. Energywatch
and Postwatch need to be more innovative in communicating with
consumers, by developing partnerships with bodies who have greater
public recognition and regular contact with consumers on a broader
range of issues, such as Citizens Advice, and the new Consumer
Direct helpline introduced by the Department of Trade and Industry.
5. Energywatch and Postwatch do not need to
have their headquarters in London. The
range of contacts they maintain with the London-based media and
government departments is not so wide as to provide a compelling
reason for a central London location. Locating outside London
would reduce costs, without materially detracting from their ability
to represent consumers.
6. Energywatch and Postwatch could also reduce
costs by sharing support services such as Information Technology
and human resources. But they need authority
from the Department to share costs. The Department of Trade and
Industry should allow Energywatch and Postwatch to share back-office
services.
7. The costs of Postwatch have increased by
21% since its creation in 2000, to £10.3 million in 2003-04.
This increase partly reflects the fourfold
rise in the volume of complaints it has received. It is hard to
see why it now has a larger budget than that of Postcomm, the
economic regulator of post. And its expenditure is similar to
that of Energywatch (£12.8 million in 2003-04), even though
the scale of consumer expenditure on postal services is far lower
than on energy.
8. Only 72% of
consumers are satisfied with how Postwatch has handled their complaint.
Postwatch take up complaints on behalf of consumers where
the consumer is not satisfied with the response from Royal Mail.
The satisfaction ratings it achieves for its resolution of complaints
have been falling and it needs to improve these ratings.
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