Regulation for energy brokers and third-party intermediaries is no longer a question of if but when.
After years of complaints from small firms and public bodies, the government has confirmed it will give Ofgem new powers to police the middlemen of the energy market.
The move comes after evidence that “some TPIs have been failing to meet the needs of consumers by engaging in non-transparent and mis-selling practices”.
These brokers and comparison sites were once hailed as the fix for competition. They now sit at the heart of an unregulated patchwork that handles billions of pounds in energy deals each year.
The government admits bluntly: “At present, Ofgem does not regulate TPIs, meaning we are not able to intervene when TPIs do not meet the standards the non-domestic sector has a right to expect.”
That gap has been costly.
Businesses have faced hidden commissions, confusing contracts and a lack of redress.
Some vulnerable consumers have been targeted or locked into expensive deals with little explanation.
The system has relied on self-policing that simply hasn’t worked.
The government says regulation will be designed to be “future-proofed”, covering both domestic and business markets.
It will bring all intermediaries under one clear framework and force transparency on pricing, commission and conduct.
The preferred model is a “general authorisation regime” that gives Ofgem direct oversight of all TPIs.
This would create common standards across the market and allow the regulator to sanction those who fall short.
Fee transparency
Officials argue this is not about crushing competition but restoring trust.
A properly regulated sector should reward the honest players who already disclose fees and operate fairly while driving out bad actors who profit from confusion.
The timing is crucial. As the UK shifts to a smarter, low-carbon grid, consumers will depend even more on brokers and digital platforms to navigate complex tariffs and technologies.
Without rules, the risk of exploitation will grow.
The government is clear: the current system is “unsustainable”.
Regulation is coming to stop the mis-selling scandals, bring clarity to the market and protect consumers who have paid the price for too long.
Brokers who act responsibly will welcome it.
Those who don’t should start preparing now — because the days of operating in the shadows are numbered.
Ofgem to regulate energy consultants appeared first on Energy Live News.