10-07-2007
Government to improve consumers’ right of redress
Small businesses and consumers will soon have greater rights of redress over complaints against companies in the energy and postal services sector.
According to The Department for Business, Enterprise and Regulatory Reform, proposals on a powerful redress scheme guaranteeing complaint resolution and consideration for compensation to consumers, is being consulted on by the government.
Currently, energy and postal services companies can only seek to resolve complaints through persuasion, having no powers to enforce resolution or offer compensation.
The Government consultation is focusing on the following three areas:
1. All regulated providers in the gas, electricity and postal service sectors should be required to become members of a redress scheme.
2. Domestic consumers and the smallest businesses should have access to the redress schemes
3. The scheme should handle all types of complaint.
BERR Minister, Stephen Timms says: “For the first time, consumers will have guaranteed access to redress schemes which have the teeth to enforce their awards. Our proposals will give people certainty that their complaints will be resolved and that they will receive compensation when it is warranted.”
The Government intends to place a duty on Ofgem, the gas and electricity regulator, and Postcomm, the postal services regulator, that prescribe new complaint handling standards for their sectors.
Moving forward, the government expects that estate agents will also have to belong to am ombudsman scheme and that a new powerful National Consumer Council will be set up, meaning consumers will get new rights relating to doorstep sales.