3 Representing and advising consumers
15. Energywatch and Postwatch were established to
strengthen the consumer's voice in the post and energy markets,
and they have a primary statutory duty to represent the views
of consumers. In doing so, they work with the Government, the
regulator and regulated companies.
16. The relevant sector regulators are the Office
of Gas and Electricity Markets (Ofgem) and the Postal Services
Commission (Postcomm) respectively. Ofgem and Postcomm issue licences,
can fine companies and require them to improve quality of service.
They also set prices and quality of service standards for any
companies in the industry with a dominant market position. In
the energy industry, direct control of prices is confined to the
companies who own the pipes and wires through which gas and electricity
is distributed. In the postal market, only Royal Mail Group, with
over 90% of the market, is subject to direct regulation of price
and quality of service.
17. The interests of the consumer body and the regulator
may diverge.[20] For
example Postwatch has criticised the short consultation periods
allowed by Postcomm for important elements of Royal Mail's price
control, and Energywatch has argued that Ofgem should reintroduce
price controls for consumers on prepayment meters.[21]
18. Post Office Limited has proposed to close around
2,700 urban post offices and Postwatch represents consumers in
the consultation process under the Urban Reinvention programme.
Postwatch has examined each proposal, and its intervention has
contributed to the withdrawal of 60 closure proposals and the
modification of a further 140. But it can be difficult to compare
the influence of Postwatch with that of others such as local councils
and MPs when a closure is modified or withdrawn.[22]
Figure 4 illustrates the limitations in the influence that
Postwatch has in the closure process. Figure
4: Post Office closures[23]
| In December 2003, the Post Office decided to close 6 post offices in one town and open up a new one in a petrol station. The local MP was concerned that the new post office would be inconvenient for many local residents. He consulted Postwatch who provided some helpful information. The MP then suggested to two local supermarkets - Morrisons and the Co-Op - that they could take on a Post Office franchise. The Co-Op eventually did so and the new branch opened in November 2004.
|
Source: Postwatch
19. Energywatch and Postwatch also have a duty to
advise consumers and can use the media to communicate with them
directly. For example, Energywatch has 'named and shamed' companies
who are providing a poor quality of service and praised companies
that are performing well. Postwatch has highlighted concerns with
Royal Mail's service. For example, it advised consumers not to
use first-class post for their Christmas mail in 2004 because
of Royal Mail's poor track record over the Christmas period. Postwatch
advised consumers to post their Christmas cards earlier but using
second-class post (a three day service) which is cheaper and more
reliable.[24]
20. There are a large number of organisations, both
public and private, representing consumers, including the National
Consumer Council, the Citizens Advice and the new Consumer Direct
advice service established by the Department of Trade and Industry.
This array of organisations is confusing, and consumers may not
be sure which one to contact.[25]
To help raise their profile, Energywatch and Postwatch meet Members
of Parliament but other initiatives, such as sending out desk
calendars with the consumer body's contact details, may not always
be the most effective way of engaging with MPs.[26]
21. Awareness of Energywatch and Postwatch remains
low. For example, just 2% of people mentioned Energywatch as the
organisation they would consult if they had a problem with their
energy service. Energywatch's contact details are provided on
gas and electricity bills. There is no similar channel for raising
awareness of Postwatch, but since 2002 the Royal Mail has passed
on Postwatch's details when replying to complainants.[27]
20 Q 19 Back
21
C&AG's Report, Figure 15. Issues surrounding prepayment meters
have been covered in the 13th Report from the Committee
of Public Accounts, Ofgem: The Social Action Plan and the Energy
Efficiency Commitment (HC 442, 2004-05). Back
22
Q 55 Back
23
Q 38 Back
24
Postwatch advises customers to use 2nd class stamps at Christmas,
Postwatch News Release, Monday 29 November 2004 Back
25
Q 117 Back
26
Q 119 Back
27
C&AG's Report, para 2.21 Back
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