A new Government consultation will investigate introducing regulations for third-party services in the energy retail market to protect consumers and businesses.

Energy brokers and price comparison websites will be among those under a new regulatory regime in response to “unacceptable instances of consumers and businesses being scammed” by unregulated rogue brokers and other Third-Party Intermediaries (TPIs) in the energy retail market.

Examples of unethical behaviour have included adding hidden fees in exchange for services or offering unsuitable contracts for customers’ specific requirements, all in a market where clients have little, or no, route for redress. 

Subject to the consultation, a new regulatory regime will require price transparency for consumers within the TPI sector, provide a suitable remedy for customer harm if it does occur.

Zoisa North-Bond, CEO of Octopus Energy for Business, commented: “We welcome the Government’s decision to look into regulations for energy brokers. We’ve long campaigned for the need to crack down on rogue brokers to bring transparency and standards into a market that’s been operating as the Wild West. Bad broker behaviour has been running rampant for too long. This consultation is a step in the right direction to protecting small businesses, the backbone of our economy, from hidden fees, unsolicited pressure and other shady practices.”

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