Energy Brokers Face Crackdown: Regulation Incoming, Says Government

The Days of Deregulation Could Soon Be Over

The UK government’s upcoming regulation of energy brokers marks a pivotal development, welcomed by many in the energy legal and consumer protection sectors. This follows years of growing concern over mis-sold business energy contracts, hidden commission structures and lack of accountability.

At Energy Solicitors, we have long represented clients who were misled or financially disadvantaged by energy brokers. 

Businesses should take note as this marks a major turning point.

Government Consultation: Overwhelming Support for Regulation

The Department for Energy Security and Net Zero (DESNZ) has revealed the findings of a recent public consultation, where stakeholders across the board supported direct regulation of energy brokers, also known as Third Party Intermediaries (TPIs).

Key voices included, consumer watchdogs, energy suppliers and brokers themselves.

The message is clear.

Self-policing in the broker market has failed.

How Have Energy Brokers Been Mis-Selling Contracts?

Many businesses, especially small and medium enterprises have been signed onto inflated energy tariffs, with brokers taking undisclosed commissions from suppliers. These arrangements often lacked transparency, leaving companies locked into costly deals without any awareness of how much the broker profited.

Common issues include, undisclosed commissions, limited independent avenues for redress and contracts signed under pressure or without full information.

A New Energy Broker Regulation Framework

The government is now weighing options for a formal regulatory framework.

Two possible models are being debated: A general authorisation regime and a bespoke licensing system for TPIs.

The proposed regulatory principles include, mandatory transparency around commissions, clear conduct rules for brokers and stronger dispute resolution mechanisms.

Regardless of which route is taken, one thing is certain... change is coming.

What Does This Mean for UK Businesses?

For thousands of small and medium-sized businesses, this could bring much-needed protections. If you've ever felt you were misled into a business energy contract or weren’t told about broker commissions, now is time to review your agreements.

At Energy Solicitors, we specialise in:

• Business Energy Mis-selling
• Energy Overcharging
• Dispute Resolution & Ombudsman Complaints
• Revenue Recovery Disputes

We’ve helped clients recover tens of thousands of pounds and our team is already preparing for the upcoming regulatory shift.

Get Ready: The Market Is Changing

As energy brokers increasingly move into areas like smart energy tech, net zero services and efficiency consulting, their influence over business energy choices is growing. But with that influence comes a need for trust, transparency and legal accountability.

If your business has been affected by dishonest broker practices, or you want a review of your energy contracts, contact our solicitors today.