If I'm not mistaken it was narrated by Kenneth Williams.
It was a cartoon set in a forest. I think every story was just about
the goodies (fat fairy girl and friends) trying to get on with life without the evil television set
(Evil Edna!!) doing nasty things to them.
The characters:
God knows what that was. Obviously he was Willow the Wisp? I think he was friendly, some kind of ghosty thing....
A dog and a cat, the dog was quite dopey if I recall.. (couldn't tell to look at him!)

The fat fairy girl with her friend's the caterpiller and birdie.

Yay! Evil Edna, she was fantastic...I don't get why she is a television set though... Had a really grouchy voice too.
Here's a little snippet of the theme tune: Willow The Wisp (Wav)