Many businesses in the UK will be familiar with using an energy broker to manage their commercial energy. As a business owner, you're juggling multiple tasks, and managing energy contracts takes time few owners can spare. Your broker is trusted to secure fair and competitive energy contracts for your business. But how can you know you're always receiving a professional and honest service? The Department for Energy Security and Net Zero (DESNZ) has published its official response to its consultation on regulating Third-Party Intermediaries (TPIs), including energy brokers, consultants, and any businesses that support customers in securing energy contracts or information.

Where has broker regulation got to in 2026?

Ofgem still doesn't regulate brokers directly. The government has confirmed it will, but that needs new law. The Energy Independence Bill, announced in the King's Speech on 13 May 2026, is expected to make Ofgem the TPI regulator, and as far as we can tell it hasn't yet been introduced to Parliament.

In the meantime, the government and Ofgem have both acted. On 18 March 2026, during the price spike, the government wrote to brokers and other TPIs across Great Britain, asking brokers to separate fact from advice and to check that commission isn't structured to favour higher-cost contracts. Ofgem then opened a market review of TPIs on 4 June 2026, and its final report is due in winter 2026/27.

Small businesses can already take a broker complaint to a redress scheme such as the Energy Ombudsman, and broker fees must appear in a contract's principal terms. Our guide to energy broker commission explains what you should see.

What is a TPI?

A Third-Party Intermediary is any organisation that sits between an energy customer and a supplier. That includes brokers who find and negotiate contracts, consultants who advise on procurement strategy, price comparison services, and aggregators. If a company helps you buy energy but doesn't actually supply it, it's a TPI.

Until now, this part of the market has been largely unregulated. Suppliers are licensed and closely monitored by Ofgem. The brokers arranging contracts on behalf of businesses have faced no equivalent oversight. That gap is what the government is now closing.

Why did the government step in?

For some context, let's go back to November 2024, when the government launched a consultation on regulating TPIs. This came about because the government saw that businesses, particularly small to medium-sized enterprises and charities, were being taken advantage of when securing energy contracts through TPIs.

Main Consultation Feedback:

The main points from DESNZ’s consultation feedback show that there were too many instances where businesses found:

  • Hidden commission and a lack of fee transparency.
  • Brokers favouring certain suppliers.
  • Mis-selling and deceptive practices.
  • Poor complaints handling and limited access to redress.
  • Sales to vulnerable or poorly informed customers.

With DESNZ’s recent official response, the hope is that moving forward this will level the playing field for both good energy brokers and customers, preventing consumers from being taken advantage of and helping to restore trust again.

Next Steps

DESNZ published its response on 23 October 2025 to the consultation that closed on 14 November 2024. They’ve appointed Ofgem (the energy regulator in Great Britain) to begin the process of regulating TPIs. Although it will take some time to regulate this subsection of the market, Ofgem is now carrying out a detailed market review, which began on 4 June 2026 and is due to report in winter 2026/27. This will help them gain a more in-depth understanding of how the TPI sector is currently operating in order to put fairer regulations in place.

5 Key Takeaways

  1. Authorisation

Once Ofgem starts putting the regulations in place, they will open a registration/authorisation window where already existing TPIs operating in the market will have a 12-18 month “sunrise period” to register. However, after that, failure to get authorised means you will not be allowed to trade.

  1. Rules on Behaviour

With the consultation feedback, it is clear that Ofgem will have to set out clear rules around how brokers and other third-party intermediaries will in future sell contracts, break down pricing to consumers, and interact with customers. By putting strict rules in place, it will filter out businesses that practise hiding commission on prices, pressure selling to customers and providing misleading quotes.

  1. Accountability

Ofgem will have the power to fine brokers, suspend them, or ban them from the market if they break the rules. They’ll also be able to take action against senior people in a business, not just “the company”.

  1. Protection for Customers

If a broker has behaved unfairly, Ofgem will be able to order compensation so that the customer doesn't have to fight it themselves.

  1. Ongoing Monitoring

Ofgem will collect data from brokers and keep a register of who is authorised. That means customers will be able to see who is compliant and who isn't.

Why this matters:

  • Ultimately customers should see more transparency and cleaner pricing.
  • It should become much harder for bad actors to operate.
  • Customers will know they are dealing with an approved partner.

In Summary

The government knows that many brokers provide real value for businesses. The new regulation will help stop bad practices and make it easier for SMEs to get the right energy deals while saving time and money. These reforms aim to create a fairer market, rebuild trust, and support good brokers who put customers first. If you would like to know more information about the government's full response, please click here.

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At Purely Energy, we’ve always put our customers first, working with openness and honesty: the median saving across our published case studies is about £5,600 a year.

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