The government has announced plans to introduce new regulations aimed at protecting consumers and businesses from “rogue” energy brokers.
A consultation will be held on these proposals, which target third-party services in the energy retail market, including brokers and price comparison websites.
The proposed regulations aim to increase transparency around fees and contracts, ensuring consumers can make informed choices.
This move follows reports of unethical practices by brokers, such as hidden charges and unsuitable contracts, with little recourse for affected customers.
The new rules will require brokers to disclose their fees and provide clear contract terms.
There will also be standards to prevent mis-selling and improve the dispute resolution process, designed to build trust in the sector.
These protections are intended to help consumers secure better deals and promote energy efficiency.
Minister for Energy Consumers Miatta Fahnbulleh said: “Too many families and businesses, already struggling with the effects of the energy crisis, have fallen victim to poor practices by energy intermediaries.
“These unregulated third parties and rogue brokers have had license to scam consumers without oversight or facing consequences.
“We will bring these intermediaries under control and put an end to hidden fees and other unethical tactics.”
Tina McKenzie, Policy Chair, Federation of Small Businesses (FSB), said: “The energy market can be very confusing to navigate for small firms, and many find brokers are helpful to find the best possible deal.
“However, this is not the case for all third-party intermediaries and there is widespread scepticism among small businesses as to whether they truly act in the small business customer’s best interests.
“The FSB has long called for tougher rules to crack down on questionable practices among a significant minority of third-party intermediaries, to make the energy market work better for small business consumers.”
