Guidance

Regulation of third-party intermediaries

Published 4 November 2026

Factsheet relating to the Energy Independence Bill.

Summary

Ofgem regulation of energy brokers, price comparison services and other third-party intermediaries will improve consumer confidence, crack down on the minority of rogue actors who exploit consumers, and empower households and businesses to benefit from the smart, secure and sustainable energy system of the future.

Why are we legislating?

The role of third-party intermediaries (TPIs), such as energy brokers and price comparison websites, is to help consumers navigate the energy market and secure energy contracts that meet their needs. However, not all TPIs are living up to this ideal, with a small minority exploiting consumers through pressure selling techniques and profiteering through high rates of commission. Regulation is the most effective solution to resolving the structural causes of these consumer harms.

Market structures, such as payment by commission and supplier’s ability to gatekeep access to pricing, create situations where the most profitable decision can be directly opposed to the best interest of consumers. Then, if things go wrong, consumers lack the protections of Ofgem’s complaints handling standards and only some business consumers have access to out of court dispute resolution.

There are many other markets where intermediaries advise and support consumers in arranging contracts, such as stockbrokers and pensions advisors. The knowledge gap between consumers and intermediaries always creates a risk of consumer exploitation, and energy TPIs are one of the last comparable markets without a direct oversight body. For these reasons and more set out during our consultation^{[footnote 1]}, the government is taking this decisive action to protect consumers.

What are the government’s objectives with this measure?

Regulation of TPIs will put consumers first by protecting them from harmful practices, improving confidence and reducing costs from excessive rates of commission. It will also support the delivery of clean power through ensuring intermediaries provide effective advice which considers consumer-led flexibility and other energy efficiency and decarbonisation options.

The government has a bold vision for the future of the TPI market and its role in promoting market engagement, enabling consumers to benefit from system transformation, and driving competition to deliver better outcomes for energy consumers. For households, TPI regulation will ensure access to out of court dispute resolution for comparison services and auto-switchers, closing a gap in consumer protections, which is particularly critical for vulnerable consumers.

For small businesses, TPI regulation will transform the energy broker market to drive pro-consumer competition between brokers and give consumers high quality, unbiased advice to make informed choices on their energy supply contracts. TPI regulation will bring an end to harmful behaviours, protecting consumers from unwanted cold calls, high pressure sales, and hidden, excessive rates of commission.

How will this measure deliver the objectives?

TPI regulation will appoint Ofgem as the regulator for TPIs. This will enable Ofgem to address cross-market issues holistically, putting consumers first by placing responsibilities on TPIs or suppliers to deliver improved consumer outcomes in the most effective and efficient way.

Ofgem will be granted a strong set of regulatory tools to create rules for TPIs, require them to pass an authorisation process, and robustly monitor their behaviour. Ofgem will also be empowered to take decisive, enforcement action if TPIs break the rules, ordering redress for consumers, levying fines, and permanently prohibiting malicious actors from the market. For over a decade, businesses and good faith intermediaries have been calling for regulation with ‘teeth’ to crack down on harmful actors in the market. The government is proud to be making this a reality. The government estimates this could save small businesses more than £300m over the next decade in excessive commission and mis-sold energy contracts.^{[footnote 2]}

Price comparison services and energy brokers are the gateway to the energy market for many UK consumers. Regulation will hold them to a set of consistent standards for behaviour, complaints handling and consumer protections. Ofgem will ensure that consumers can engage with the market in confidence and receive genuine support to bring down their energy bills and benefit from emerging technologies in the smart and secure energy system of the future.

1. DESNZ (2024) ‘Regulating Third-Party Intermediaries (TPIs) in the retail energy market’ ↩

2. DESNZ (2026) ‘Energy Independence Bill: Impact Assessment 20 - Regulation of Third-Party Intermediaries (PDF, 787 KB, 55 pages) ↩