Regulating energy brokers: what the new TPI legislation means and why it matters for a greener future
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The government’s confirmation that Ofgem will become the formal regulator of Third Party Intermediaries (TPIs) marks a major shift for the UK energy market. For the many businesses who rely on energy brokers, these changes are set to raise the bar for transparency, trust and fairness, while also laying stronger foundations for the transition to a sustainable, renewable-powered Britain.
Why bring in regulation for TPIs?
Until now, TPIs, which include energy brokers, price-comparison services, aggregators and other intermediaries, operated without sector-specific oversight. That environment could mean a lack of transparency around broker fees and limited recourse if a customer was mis-sold or faced poor service.
During a consultation into TPIs by the government’s Department for Energy Security and Net Zero, stakeholders overwhelmingly supported regulation. Out of some 85 responses from TPIs, suppliers, consumer-protection bodies and business users, the conclusion was clear: to build a market that supports fairness, transparency and consumer choice, especially as the UK transitions to cleaner energy, TPIs needed to be more regulated.
What will the new TPI legislation do?
Once legislation is passed, the TPI market will likely shift substantially.
The primary change will see Ofgem formally appointed as the TPI regulator, gaining powers to set rules, investigate misconduct, and enforce compliance. TPIs will need to register with Ofgem under a “general authorisation” regime, and meet registration and compliance requirements before operating. Enforcement powers will give Ofgem the same powers their currently have with energy suppliers, meaning they’ll be able to fine or suspend TPIs that breach rules, and to take action against senior individuals in those firms if appropriate.
All energy suppliers will be required to clearly show any TPI fees as separate from supply costs. We believe businesses will benefit from the increased transparency that will come with this.
The cost of regulation will be recovered from the TPI market itself; conversely, those who cooperate and maintain good compliance may benefit from lower costs under proposed incentive measures.
The government has said the implementation will begin with a transition period once the legal framework is in place, giving TPIs 12-18 months to register with Ofgem.
What does this mean for businesses and the wider market?
For businesses, there will be greater clarity and fairness. With mandatory disclosure of broker TPI fees, customers will know exactly what they are paying for intermediary services. They will also have better access to redress meaning that, if issues do arise, customers will have clearer routes to dispute resolution and compensation under a regulated regime.
For the energy market, the changes will foster competition based on the quality and dynamism of the services on offer. We also believe there will be a boost for mission-driven suppliers and TPIs, as suppliers and intermediaries committed to transparency and sustainability will be better able to build trust and stand out.
Why this matters for Ecotricity and our TPI partners
At Ecotricity, we recognise the essential role that our TPI partners play in the energy market, particularly in our mission to build Green Britain. We support and agree that these new regulations will further encourage transparency and enhance integrity and growth in the renewable energy sector.
We see this regulatory step not as a burden, but as an opportunity. It’s an invitation to deepen collaboration, to deliver highly ethical service, and to champion offers that reflect our shared commitment to sustainability. As the market evolves, we are keen to work together with TPIs to navigate the changes, and accelerate the transition to renewable energy across Britain.
For the customers of TPIs, this gives a clearer pathway to secure green energy deals. And for those of us with a long-term vision for a cleaner, greener energy system, this is a meaningful advance. That’s why the introduction of this regulation will drive the opportunity to build a market defined not just by price, but by trust, fairness and collective purpose.
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