Third Party Intermediary (TPI) regulation in the UK non-domestic energy market has been a slow-moving policy story since the 2018 Citizens Advice market study first flagged the gap. In 2026, the picture is closer to enforceable rules than it has been at any previous moment, but the legislative path is still mid-route. The detail of what Ofgem proposes, what is in scope, and what is not, matters to any SME buyer working through a broker this year.
TL;DR
- TPI regulation in non-domestic energy supply has been Ofgem-led, not FCA-led, because non-domestic energy is regulated under the Electricity Act 1989 and Gas Act 1986 rather than the Financial Services and Markets Act 2000.
- Ofgem's 2022 microbusiness changes following the Non-Domestic Market Review introduced supplier-side accountability for broker conduct; the 2024 review opened formal consultation on direct TPI rules.
- The 2026 consultation timeline focuses on commission disclosure, mandatory complaint handling through an approved ADR scheme, a code of practice, and a mandatory accreditation register.
- FCA-style authorisation is not in scope: this is Ofgem-led regulation operating through the supply licence and, where statutory powers are granted, directly on TPIs.
- The catch is enforcement timing: Ofgem needs statutory powers from primary or secondary legislation to enforce directly on brokers, and legislative time remains the binding constraint as of May 2026.
Last reviewed: May 2026
Why TPI regulation is Ofgem business, not FCA business
The Financial Conduct Authority regulates activities defined as regulated under the Financial Services and Markets Act 2000 and the Regulated Activities Order. Non-domestic energy supply and the brokerage of non-domestic energy supply are not on the regulated list.
This is a deliberate framing in UK regulatory architecture. Energy supply sits under the Electricity Act 1989, the Gas Act 1986, the Utilities Act 2000, and the Energy Acts that followed. The competent regulator is Ofgem (formally GEMA, the Gas and Electricity Markets Authority).
The Financial Ombudsman Service has no jurisdiction over non-domestic energy broker conduct. The Financial Services Register does not include energy brokers. The Senior Managers and Certification Regime does not apply.
The route to enforceable TPI regulation runs through Ofgem and through energy-specific legislation. There is no shortcut via the FCA.
The 2018 to 2022 backdrop
The 2018 Citizens Advice super-complaint and subsequent market study placed broker mis-selling at the centre of non-domestic market reform. The Competition and Markets Authority earlier work, alongside Ofgem's own review, set out the case for action.
Through 2019 to 2021, Ofgem's response was framed around supplier-side rules rather than direct broker regulation. The Standards of Conduct were tightened to require suppliers to take responsibility for the conduct of brokers acting on their behalf.
In 2022, the Non-Domestic Market Review delivered the most significant package of changes to date. The microbusiness rules tightened, including the ban on automatic rollover into a new fixed term, the requirement for a principal terms document, and the extension of Energy Ombudsman jurisdiction to microbusiness disputes.
The 2022 changes had a real but indirect effect on broker conduct. Suppliers, now exposed to Ofgem action for broker behaviour in their sales chain, increased due diligence on broker partners. Some suppliers exited broker channels with weaker compliance histories. The effect on the broker market was tightening rather than transformation. Several suppliers introduced their own internal broker accreditation processes, layering supplier-specific standards on top of the absent statutory framework. Ombudsman Services Energy data through 2023 and 2024 showed a measurable but partial reduction in microbusiness complaint volume tied to broker conduct. The reduction was not uniform across the market: brokers operating with multiple supplier panels found it harder to evade scrutiny than brokers tied to a single supplier with weaker oversight. Citizens Advice work in the same period highlighted that the supplier-side route, while improved, still left non-microbusiness SMEs without an equivalent protection.
The 2024 Non-Domestic Market Review and the direct TPI rules
Ofgem's 2024 Non-Domestic Market Review opened formal consultation on direct regulation of TPIs. The consultation document, published by Ofgem in 2024 with subsequent statutory consultation through 2025 and continuing into 2026, sets out four main proposed in-scope items.
Commission disclosure. The proposal requires TPIs to disclose commission to customers at the point of contract proposal, either as a pence per kWh figure or as a total monetary value across the contract term. The disclosure would have to be in writing and on the contract paperwork.
Complaint handling through an approved ADR scheme. The proposal extends Energy Ombudsman jurisdiction to cover TPI conduct, not just supplier conduct, with mandatory TPI participation in the scheme. Microbusiness customers would have a direct route to ADR against the broker, not just through the supplier.
Code of practice. A statutory code, replacing the current patchwork of voluntary industry codes, would set conduct standards on cold-calling, contract presentation, Letter of Authority drafting, and renewals communications.
Mandatory accreditation register. A register of TPIs operating in the non-domestic market, with conditions for entry and grounds for removal, would be created. Suppliers would be required to deal only with registered TPIs.
The consultation also addresses Letter of Authority standardisation, the multi-LOA conflict problem, and the cooling-off period for microbusiness contract signature.
What is not in scope
FCA-style individual accountability. The proposals do not include a senior managers regime or individual conduct authorisation for broker personnel. The regime is firm-level rather than individual-level.
Price control on commission. The proposals require disclosure of commission but do not cap it. The market view is that disclosure plus the resulting customer awareness will discipline commission levels without direct regulation.
Direct contract validity rules. The proposals do not invalidate contracts signed without disclosure, although enforcement action against the TPI and supplier remains available.
Domestic energy switching services. The proposals address non-domestic supply. Domestic energy switching (price comparison services for household customers) operates under a different regime, including the Ofgem Confidence Code and FCA permissions where credit is involved.
The legislative path and the timing reality
Ofgem cannot, by current statutory powers, enforce most of the proposed TPI rules directly on brokers. The supply licence reaches suppliers but not TPIs as independent entities. Direct enforcement requires either primary legislation amending the existing Acts to extend Ofgem's perimeter, or secondary legislation under existing enabling provisions where these exist.
The legislative route involves Parliament, DESNZ policy work, and the standard timeline for statutory instruments or new primary legislation. Government statements through 2024 and 2025 have indicated support for the Ofgem direction, but legislative slots are contested and the energy policy agenda has competing priorities (Future System Operator implementation, grid connection reform, the next price cap framework, retail market reform).
The realistic timing for enforceable direct TPI regulation, based on the publicly visible legislative pipeline in May 2026, runs into 2027 at the earliest. Interim measures, operating through supplier-side rules, continue to apply.
Until the statutory rules land, buyers have a finite but real toolkit. The table below summarises the actions available now.
| Action | Current effectiveness | Notes |
|---|---|---|
| Ask for commission disclosure in writing | Not required of broker, broker free to refuse | Refusal is itself useful data. |
| Sign limited-scope LOA | Customer choice, no regulatory backstop | 30 to 60 day window, quote-gathering only. |
| Verify broker entity at Companies House | Independent of regulatory regime | Recent re-registrations are a flag. |
| Check Ofgem Confidence Code (domestic switching only) | Domestic only, not applicable to business | Useful pointer for domestic switching but not business brokers. |
| Use Ombudsman Services Energy for microbusiness disputes | Available through supplier route | Direct TPI jurisdiction pending consultation outcome. |
| Compare against supplier-direct published rates where available | Effective where supplier publishes (Octopus and a few others) | Cleanest commission visibility check available now. |
The table shows the current toolkit. None of it depends on the proposed TPI rules being in force. A buyer using these tools in May 2026 is operating within the current regulatory regime, not anticipating the proposed one.
The regional and contextual reality
TPI activity is not uniform across the UK. Cold-call and outbound broker activity has historically concentrated on certain market segments: hospitality, small retail, and microbusiness sites with low energy literacy. Citizens Advice work in 2024 and 2025 highlighted concentrations of complaint volume around small hospitality businesses in the West Midlands, Greater Manchester, and the Welsh Valleys.
In Scotland, the TPI market operates under the same regulatory framework as England and Wales, since Ofgem's remit covers Great Britain. In Northern Ireland, the parallel regime under NIAUR applies, with its own supplier list and a different set of TPI dynamics. The proposed Ofgem rules will apply to Great Britain only; Northern Ireland reform sits with NIAUR and the Department for the Economy.
Here is where it breaks in practice for the buyer: the regulatory protection a microbusiness receives in 2026 depends on supplier-side enforcement of indirect rules, not direct TPI enforcement, and that asymmetry continues until legislation closes the gap.
What a buyer should look for in supplier and broker responses
Suppliers that work with TPIs and that take the 2022 rules seriously are increasingly able to provide a clear answer when asked: which TPIs are accredited to sell on the supplier's behalf, what due diligence has been done, and what the supplier's complaint handling looks like when broker conduct is challenged.
Brokers that are positioning for the proposed accreditation register are increasingly able to provide voluntary commission disclosure and clear LOA scoping, as a competitive advantage. A broker volunteering this information ahead of any regulatory requirement is a different proposition to one that resists.
The 2026 environment is a transitional one. Some of the proposed protections operate in practice through forward-leaning suppliers and brokers; others remain dependent on the legislative outcome. A buyer who understands which protections are in force and which are aspirational is in a stronger position than one who assumes the framework already protects them.
Editorial disclaimer. KaelTripton is an independent UK publisher. This article is editorial, not personal financial or energy procurement advice. Rates, caps, grant levels and supplier offers move; verify any figure with the named primary source before acting on it. KaelTripton does not earn commission from suppliers or brokers mentioned.
Frequently asked questions
Will the FCA ever regulate non-domestic energy brokers?
Not under the current legal framework. Non-domestic energy supply is regulated under the Electricity Act 1989 and Gas Act 1986, outside the FCA's perimeter. Direct broker regulation is Ofgem-led, requiring energy-specific legislation rather than FCA authorisation.
What does Ofgem propose to require of energy brokers?
The 2024 Non-Domestic Market Review consultation proposes commission disclosure on contract paperwork, mandatory complaint handling through an approved ADR scheme, a statutory code of practice, and a mandatory accreditation register. Implementation depends on legislative timing.
When will the new TPI rules be enforced?
As of May 2026, the consultation work is substantially complete but the statutory enforcement powers require primary or secondary legislation that has not yet completed the parliamentary process. Realistic enforcement timing extends into 2027 at the earliest.
Does the Energy Ombudsman currently take broker complaints?
For microbusiness customers, the Ombudsman has jurisdiction through the supplier route, including broker conduct in the supplier's sales chain. Direct TPI jurisdiction independent of the supplier is part of the proposed reform package, not yet in force.
What is the practical effect of the 2022 microbusiness rules on broker behaviour?
The 2022 changes pushed responsibility for broker conduct onto suppliers through the Standards of Conduct. Suppliers responded with tighter due diligence and exit from some broker partnerships, indirectly raising standards but without direct broker enforcement.
Sources
- Ofgem - Non-Domestic Market Review TPI rule changes, 2024 consultation and 2025-2026 development
- Ofgem - Energy advice for businesses, microbusiness Standards of Conduct
- Ofgem - Energy policy and regulation hub, May 2026
- Citizens Advice - Energy supply, broker mis-selling reporting and policy submissions
- Ombudsman Services Energy - sector reports and microbusiness jurisdiction
- DESNZ - Department for Energy Security and Net Zero, TPI legislation policy
- Utility Regulator NIAUR - Northern Ireland energy regulation, separate framework