The Government to Regulate Third-Party Intermediaries (TPIs)

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


For some context, let’s go back to November 2024, when the government launched a consultation to discuss the prospects of regulating TPIs. This came about because the government saw that businesses, specifically 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 feedback from last year’s consultation this month, on 23rd October 2025. 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 will carry out a detailed market survey, which is set to begin in the first half of 2026. 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. 


2. 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. 


3. 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”.


4. 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. 


5. 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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Written by Faith Labong at Purely Energy