Regulating Third-Party Intermediaries (TPIs) in the retail energy market
Read the full outcome
Detail of outcome
Feedback from the consultation has given the government increased confidence that direct regulation of the third-party intermediary (TPI) market is the right decision for consumers. Regulation is the best mechanism for addressing the risks to consumers, particularly for protecting charities and small businesses from rogue energy brokers. Regulation of TPIs can improve consumer outcomes, enhance consumer protections and transform the TPI market into a powerful enabler to unlock the benefits of energy innovations for ordinary consumers.
Consequently, when parliamentary time allows, we intend to bring forward legislative proposals to:
- appoint Ofgem as regulator for TPIs
- grant it rules making, monitoring and investigation tools
We intend to empower Ofgem to create principles, set specific rules and require TPIs to pass a registration process. Our proposals would also expand statutory consumer advocacy into this sector. The cost of regulation would be recovered from the TPI market with strong incentives for firms to co-operate with the regulator to reduce the cost of regulation for all parties.
Feedback received
Detail of feedback received
We received 85 responses to this consultation from the following types of respondents:
- third-party intermediaries (TPIs):
- energy brokers and sub-brokers
- price comparison websites/services
- auto-switchers
- bill splitters
- resellers
- independent advanced meter data agents
- aggregators (for TPIs)
- AI enabled TPIs
- energy suppliers and their representatives
- consumer advocates and customer industry bodies
- energy industry bodies
- legal, data, and technology service providers
Responses strongly supported direct regulation of this market to improve transparency, protect consumers and create a more trustworthy and competitive TPIs market.
The government will continue to engage with stakeholders on this policy area and intends to issue a full response to the consultation later in 2025.
Original consultation
Consultation description
The government envisions an energy sector that prioritises consumers, ensuring they benefit as Great Britain transitions into a clean energy superpower. This approach aims to address economic inequality while tackling the climate crisis, focusing on consumer protection and empowerment within the shift to clean energy.
This consultation document seeks views on the regulation of Third-Party Intermediaries (TPIs) within the retail energy market, aiming to enhance consumer protection and support the transition to a cleaner energy system.
This consultation occurs within the broader context of the government’s ongoing commitment to support Ofgem’s efforts to create a well-functioning market for non-domestic customers. This includes collaboration to implement recommendations from Ofgem’s non-domestic policy consultation from July 2023 swiftly and effectively.
Currently, there are concerns about the performance of some TPIs, which often act as intermediaries between consumers and energy suppliers. Issues such as non-transparent practices and mis-selling have been highlighted, particularly within the non-domestic market.
This consultation outlines proposals to regulate TPIs, enhance consumer protection, improve market transparency, and ensure that TPIs contribute positively to the energy sector’s evolution towards cleaner energy. It also considers the establishment of a general authorisation regime for TPIs as the preferred regulatory approach.
The consultation is open to all interested parties, with a particular focus on stakeholders within the energy sector, including TPIs, energy suppliers, consumer protection groups, and businesses relying on TPIs for energy procurement and management.
Read our consultation privacy notice.
Documents
Updates to this page
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Government response published.
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Published a summary of responses to this consultation.
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First published.