Consumers, Estate Agents and Redress Act 2007

Part 5: Funding and accounts

198. Part 5 sets out how the Council will be funded, and the requirements to be placed on the Council in relation to its accounts.

199. Paragraph 29 inserts additional provisions in the Utilities Act 2000 (c.27) which provide that licensed electricity and gas providers may be required to pay for:

a)

the appropriate proportion of the expenses of the Council (including a proportion of the establishment costs);

b)

the appropriate proportion of the costs of the Secretary of State in relation to the establishment of the Council;

c)

any transfer schemes made under section 35(2)(a) or 35(7) of the Act in respect of energywatch;

d)

the costs of the Secretary of State in relation to the abolition of energywatch;

e)

the costs of the OFT in relation to the expansion of any public consumer advice scheme supported by the OFT (“OFT scheme”) to enable it to cater for enquiries from electricity and gas consumers;

f)

the appropriate proportion of the costs of the Office of Fair Trading in relation to the operation of an OFT scheme.

200. In determining the “appropriate proportion” of the funding to come from energy licensees, the Secretary of State must have regard to the functions exercised by the Council or an OFT scheme in relation to electricity and gas consumers.

201. Paragraph 31 inserts a new provision into the Postal Services Act 2000 (c.26) which provides that licensed suppliers of postal services may be required to pay for:

a)

the appropriate proportion of the expenses of the Council (including a proportion of the establishment costs);

b)

the appropriate proportion of the costs of the Secretary of State in relation to the establishment of the Council;

c)

any costs relating to transfer schemes made under section 35(2)(a) or 35(7) of the Act in respect of Postwatch;

d)

the costs of the Secretary of State in relation to the abolition of Postwatch;

e)

the costs of the OFT in relation to the expansion of any public consumer advice scheme supported by the OFT (“OFT scheme”) to enable it to cater for enquiries from postal services consumers;

f)

the appropriate proportion of the costs of the Office of Fair Trading in relation to the operation of an OFT scheme.

202. In determining the “appropriate proportion” of the funding to come from postal services licensees, the Secretary of State must have regard to the functions exercised by the Council or the OFT scheme in relation to postal services consumers.

203. Paragraph 32 sets out the requirements on the Council in relation to its accounts, including a requirement on the Comptroller and Auditor General (the head of the National Audit Office) to audit the Council’s accounts annually, and for the Secretary of State to lay each year’s certified accounts (as well as the Comptroller and Auditor General’s report on the accounts) before Parliament.