Energy brokers are heading for formal regulation, and we think that’s good news. The government intends to make Ofgem the regulator for brokers and other energy intermediaries, and Ofgem is already preparing for the job. Here’s what’s changing as of October 2026, what it means for your next contract, and how we already work to the standards Ofgem is aiming for.
What’s Changing for Energy Brokers?
Since October 2025, the government’s plan has been to make Ofgem the regulator for third-party intermediaries (TPIs) in the retail energy market, because of its experience of the energy sector. TPIs are the businesses that sit between you and your supplier.
It’s what a firm does that counts, not what it calls itself. The starting point is energy procurement, which takes in energy brokers and sub-brokers, price comparison websites, auto-switchers, bill splitters, resellers and aggregators. Most of the harm the government found is concentrated in the non-domestic market, particularly for small businesses and charities. That’s the part of the market we work in, so we’re glad to see it taken seriously.
Here’s how the new regime is meant to work:
- Registration: Ofgem would be able to require intermediaries to register before they operate, with fit-and-proper checks on the people who run them.
- Rules: Ofgem would set high-level principles, specific rules and registration requirements, and update them over time, much as it does with supplier licence conditions.
- Enforcement: Ofgem would have powers to investigate, order redress, impose fines and exclude firms from the market.
- Fees: Intermediaries would pay for regulation through annual fees linked to the revenue from their regulated activities.
- A sunrise period: Once registration is live, there’d be a 12 to 18 month transition, after which an intermediary without Ofgem authorisation would have to stop arranging energy contracts.
None of this is in force as of October 2026. The new powers need primary legislation, which Ofgem expects to come through the Energy Independence Bill announced in the King’s Speech, subject to Parliament. Until then, nothing changes about how you buy your energy with us.
What’s Happening Before the Law Changes?
Ofgem isn’t waiting for the law. On 4 June 2026 it opened a market review of third-party intermediaries, and it estimates there could be over 2,000 intermediaries operating across the sector. As of October 2026, a final report is due in winter 2026/27.
As of October 2026, Ofgem doesn’t license energy brokers, and it can’t until the formal powers arrive. But it’s already preparing to regulate the sector, and we’re part of that work. We sit on the Ofgem TPI working group and meet them regularly, so we’re helping shape how this works rather than watching from the sidelines, and we’ll keep you posted on anything that affects your contracts.
What a Good Broker Should Already Be Doing
Since July 2026, Ofgem’s good practice principles for setting up energy contracts give the clearest picture yet of what a good broker looks like. As of October 2026 they’re principles rather than enforceable rules, but here’s what they cover:
- Clear, honest information: Including whether the broker acts for a supplier or as an impartial intermediary, and whether it searched all suppliers or only some.
- Terms up front: The principal terms, such as pricing, contract length and early exit fees, set out before you agree.
- Commission explained: Commission or fee arrangements clearly explained, and reflecting the service you actually get.
- A clear complaints process: Easy to use, plus membership of a qualifying dispute settlement scheme for any broker serving micro or small businesses.
Brokers already working this way should be well set up when regulation arrives. We’d go further: a good broker should be working this way already, and we do. Some of it is already required through supplier rules, such as showing broker fees in your contract’s principal terms. As a business energy broker, we’re paid commission by the supplier, included in the rates and charges in your supply contract, so that rule applies to every contract we arrange.
How We Already Work
We didn’t need new rules to tell us how to treat our customers. Here’s how we measure up:
- Independent: As an independent business energy and water broker, we aren’t tied to any one supplier.
- More than one price: We compare prices from suitable suppliers for your sites and present the options that best suit your business.
- Commission in writing: You don’t pay us a separate fee, and we disclose our commission in full, in writing, before a contract is signed.
- You stay in control: Our Letter of Authority (LOA) lets us help you, not make decisions for you. Help with your contracts, bills and supplier queries: yes. Enter into a contract on your behalf: no. Some brokers ask for a “level 2” LOA that lets them sign contracts for you. Ours is a level 1 LOA, so only you can agree a contract.
- Memberships: We’re members of an alternative dispute resolution scheme with the Energy Ombudsman. We’re also members of the Energy Consultants Association (ECA), which is a trade association.
What This Means for Your Business
You don’t have to wait for new laws to get the service Ofgem is aiming for. We’ll compare business electricity prices and business gas prices for your sites, with our commission set out before you sign. Once you’re on contract, we check your bills against the agreed rates and recorded consumption, help with any billing or meter issues, and our dedicated retentions team looks after your renewal reminders and timetable.
Our advice on timing doesn’t change while the rules are being written. We always advise arranging your next contract as early as possible, normally 12 months before your renewal date, so you can take advantage of forward pricing rather than the short-notice prices on offer when a renewal is left to the last month or two.
Final Thoughts: Regulation We Welcome
Regulation is on its way, and it’s aimed at exactly the things a good broker should already be doing. That’s how we’ve always worked, so if your contract is coming up for renewal, there’s no reason to wait for the new rules. Book an appointment with our Energy Team or call us on 01273 914000, and we’ll take it from there.