The Consumers, Estate Agents and Redress (CEAR) Act will see the creation of new arrangements for consumer representation in the energy sector. Under the new arrangements there will be:
a new consumer advocacy body which will bring together energywatch, postwatch and the National Consumer Council. This will be called the ‘National Consumer Council’;
an extension of Consumer Direct to cover enquiries and simple complaints from energy customers;
a new requirement on energy providers (anticipated to include both suppliers and network businesses) to belong to a redress scheme approved by Ofgem. This scheme will operate as a back-stop for customers that have been unable to resolve disputes with their energy provider. The redress scheme will be capable of requiring resolution of disputes and compensation where warranted; and
a duty on Ofgem to set complaint handling standards which will be binding on energy providers.
As a result of these changes and the duties on Ofgem to set complaint handling standards and approve redress schemes for energy, we have initiated a number of work-streams to take forward complaint handling and redress and are also closely involved in the implementation of the new arrangements to ensure that the interests of energy customers are protected. Our publications relating to our work in these areas will be made available on this section of our website.
We have also established a working group tasked with facilitating the transition from energywatch to the bodies which will replace it, Consumer Direct and the new National Consumer Council. Minutes of the working group’s meetings can be found via the 'energywatch transitional arrangements' link under Further Resources.
Further information about the Act is available from BERR’s website.