Energy brokers and price comparison websites will be among those set to be held to account by a new regulatory regime in a bid to provide better protection and save money for consumers and businesses, the Government has announced.
The proposed measures, published on Friday (20 September), were said to have been “designed to protect” customers as well as “raise standards and ensure fair competition” in the energy market of the future and contribute towards net zero goals.
UKH chief executive Kate Nicholls said: “It’s about time rogue energy brokers were addressed and we’re pleased the Government is acting on our concerns, which were also reinforced by Ofgem’s review into the non-domestic energy market.
Introduced swiftly
“New measures to make broker fees more transparent are absolutely essential and will see the market better regulated moving forwards, but it remains the case that it will be too late to deal with the poor behaviour many businesses were subject to during the energy crisis.
“For that reason, new measures must be introduced swiftly to stamp out that behaviour once and for all.”
Subject to a consultation, the new regulatory regime will include regulation of Third-Party Intermediaries (TPIs), require price transparency for consumers within the TPI sector and provide a suitable remedy for harm if it does occur as well as encourage innovation and fair market competition.
It would also be “mandatory” for TPIs to provide “transparent information” on their fees and “clarity” over the terms of their contracts to ensure consumers can make informed decisions under the proposals, the Government added.
Unacceptable instances
The measures were described as a response to “unacceptable instances” of consumers and businesses being scammed by “unregulated rogue brokers and other TPIs in the energy retail market”.
Examples of unethical behaviour included adding hidden fees in exchange for services or offering unsuitable contracts for customers’ specific requirements.
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.
“A new regulatory framework, coupled with clear rules and standards, will restore trust and protect consumers while helping to build an energy market fit for the future – one where these organisations help people save money through fairer practices and show them the best ways to reduce their carbon footprint.”
