The formation of the new Consumer Focus organisation happens today - but some MPs remain to be convinced over its effectiveness.
Energywatch joined forces with two other campaigning groups to form a new, merged, watchdog today.
The gas and electricity consumers' group, the National Consumer Council and Postwatch - which supervised the postal service - have now formed the new Consumer Focus organisation. It will function primarily as a voice for British people, lobbying the government for fairer treatment.
Around £15 million a year in public money will go towards funding the organisation and the creation of a new ombudsman scheme - which is set to rule on customer complaints regarding both the energy and the postal sectors.
Business secretary John Hutton said: "These changes will help consumers get a better deal. One single body, rather than three, means a stronger voice holding business and government to account. It means a more joined up approach to tackling problems."
He added: "Energy companies will have to take greater responsibility for handling complaints or face significant fines. And where complaints can't be resolved voluntarily, new redress schemes give the system teeth."
However, the merging of Energywatch in to a larger group at a time when gas and electricity prices are rising sharply has been criticised by MPs. Earlier this year, the commons business and enterprise committee said that Consumer Focus was a "spectacularly bad idea".
