Regulating Third-Party Intermediaries (TPIs) in the retail energy market

The government envisions an energy sector that prioritises consumers, ensuring they benefit as Great Britain transitions into a clean energy superpower. This approach aims to address economic inequality while tackling the climate crisis, focusing on consumer protection and empowerment within the shift to clean energy.

This consultation document seeks views on the regulation of Third-Party Intermediaries (TPIs) within the retail energy market, aiming to enhance consumer protection and support the transition to a cleaner energy system.

This consultation occurs within the broader context of the government’s ongoing commitment to support Ofgem’s efforts to create a well-functioning market for non-domestic customers. This includes collaboration to implement recommendations from Ofgem’s non-domestic policy consultation from July 2023 swiftly and effectively.

Currently, there are concerns about the performance of some TPIs, which often act as intermediaries between consumers and energy suppliers. Issues such as non-transparent practices and mis-selling have been highlighted, particularly within the non-domestic market.

This consultation outlines proposals to regulate TPIs, enhance consumer protection, improve market transparency, and ensure that TPIs contribute positively to the energy sector’s evolution towards cleaner energy. It also considers the establishment of a general authorisation regime for TPIs as the preferred regulatory approach.

The consultation is open to all interested parties, with a particular focus on stakeholders within the energy sector, including TPIs, energy suppliers, consumer protection groups, and businesses relying on TPIs for energy procurement and management.

Read our consultation privacy notice.