Ofgem to regulate energy brokers

New measures are being introduced to protect businesses by tackling rogue brokers in the energy market.

The Government said some third party intermediaries use “predatory sales tactics” to take advantage of customers, selling them overpriced contracts in return for higher commission fees.

Ofgem will now regulate the market, and the plans will also standardise contracts when businesses and public sector organisations are required to install smart meters.

The Government said small and medium-sized enterprises stand to benefit most from third-party intermediary regulation.

Beth Martin, Director for Consumer Protection and Competition at Ofgem, said: “Energy brokers can help customers save money. But when any household or business is taken advantage of by a rogue energy broker, the reality is significant stress and financial strain that can have a real impact on their lives or the future of their company.

“We have listened closely to the concerns of businesses and already introduced a series of changes to the support they are provided. By extending our remit to cover third-party intermediaries, we will significantly strengthen those protections.”