Ofgem confirmed on 20 July 2026 that it is preparing to regulate third-party intermediaries, including energy brokers and price comparison websites, with registration required before operating. A sector review completes in 2026 and formal regulatory proposals are expected in 2027.
TL;DR · LAST REVIEWED 21 July 2026
- Ofgem's Deputy Director for Consumer Protection set out the regulator's preparations in a blog published 20 July 2026
- The government intends to appoint Ofgem as regulator with powers to make rules, monitor the market and require intermediaries to register before operating
- Ofgem cites a lack of transparency, misselling, hidden commissions and poor complaint access in parts of the market
- Good practice principles are available now and are voluntary, but Ofgem says firms that adopt them will be well set up for future regulation
- The sector review completes in 2026, with initial regulatory proposals to be consulted on in 2027
- A market review call for input and TPI Forum mailing list are open for brokers to contribute
Ofgem's three consumer outcomes translated into TPI good practice, July 2026
| Consumer outcome | What Ofgem expects in practice |
| Informed choices | Clear, accurate and timely information so customers can compare and decide |
| Fair complaint handling | Concerns and complaints addressed fairly, effectively and promptly |
| Fair value pricing | Charges that reflect fair value for the service the intermediary provides |
Source: Ofgem blog, 20 July 2026
KEY FACTS
- TPIs are defined by Ofgem as businesses acting on behalf of customers to find and arrange energy contracts, including brokers, price comparison sites and auto-switchers
- Registration before operating is part of the government's intended framework
- Ofgem's stated aim is regulation that protects customers without over-regulating, using an evidence-led approach
- The good practice principles are not enforceable rules but set out Ofgem's starting view of what good looks like
- Brokers can join Ofgem's TPI Forums and respond to the market review by emailing TPI@Ofgem.gov.uk
What did Ofgem announce about TPI regulation?
Ofgem confirmed it is actively preparing to regulate the third-party intermediary sector, with the government intending to grant powers to create rules, monitor the market and require intermediaries to register before operating. The announcement came in a blog by Louise van Rensburg, Deputy Director for Consumer Protection and Competition, on 20 July 2026.
Third-party intermediaries sit between energy customers and suppliers: brokers who negotiate business energy contracts, price comparison websites, and auto-switching services all fall within Ofgem's definition of businesses that act on behalf of customers to find and arrange energy deals. The sector has operated largely outside direct regulation, with protections applying mainly through rules on suppliers rather than on the intermediaries themselves. That gap is what the announced framework closes. Ofgem's blog is explicit about the harms driving the change: a lack of transparency in parts of the market, misselling, hidden commissions and poor access to help when things go wrong. Hidden broker commissions in particular have been the subject of a wave of business energy claims in recent years, with costs embedded in unit rates that customers could not see or compare. The regulator balances the criticism by acknowledging that intermediaries can guide homes and businesses through a complex market, and frames regulation as a route to trust and growth for the sector rather than a punishment: in its words, good regulation can encourage innovation, increase trust and create a market that works in customers' interests.
What happens next and when will the rules apply?
Ofgem completes its market review during 2026, then consults on its initial regulatory proposals in 2027. Until formal powers arrive, voluntary good practice principles apply, and Ofgem says intermediaries that consistently deliver them will be well positioned for the future framework.
The immediate machinery is evidence gathering. Ofgem is collecting data from intermediaries, suppliers, consumer groups and customers to build a picture of how the sector operates, and has said it does not want simply to replicate supplier regulation: it is studying how other sectors regulate large numbers of firms efficiently, which signals a registration and standards model rather than full licensing. For energy brokers, three practical steps are available now. The good practice principles, built on three consumer outcomes covering informed choices, fair complaint handling and fair value pricing, can be adopted into day-to-day operations immediately. The market review call for input is open for submissions. And Ofgem's TPI Forums mailing list gives firms notice of consultation opportunities, joined by emailing TPI@Ofgem.gov.uk. For the businesses that use brokers, the direction of travel matters when signing multi-year contracts today: commission transparency and complaint routes are the behaviours the regulator has named, and asking a broker now how it aligns with Ofgem's published principles is a reasonable due diligence question. Micro businesses already have some protection through supplier licence conditions requiring principal terms to be transparent, but the new framework is the first to reach the intermediaries directly.
DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
Frequently asked questions
What is a third-party intermediary in energy?
Ofgem defines TPIs as businesses that act on behalf of customers to find and arrange energy contracts between customers and suppliers. This includes business energy brokers, price comparison websites, auto-switching services and energy consultants who negotiate deals.
When will energy brokers be regulated by Ofgem?
No date is fixed. Ofgem completes its sector review in 2026 and will consult on initial regulatory proposals in 2027. The government has stated its intention to give Ofgem powers including requiring intermediaries to register before operating.
Are Ofgem's good practice principles mandatory?
No. Ofgem states they are not enforceable rules but set out its starting view of what good looks like. The regulator adds that intermediaries consistently achieving these outcomes are likely to be well set up for future regulation.
Why is the TPI sector being regulated?
Ofgem identified a lack of transparency, misselling, hidden commissions and poor access to help when things go wrong in parts of the market. The government concluded regulation is the best way to strengthen protections for homes and businesses using intermediaries.
How can an energy broker respond to Ofgem's plans?
Brokers can respond to the third-party intermediaries market review call for input, adopt the good practice principles now, and join Ofgem's TPI Forums mailing list by emailing TPI@Ofgem.gov.uk to be notified of consultation opportunities.
SOURCES
- Ofgem blog: third-party intermediaries, 20 July 2026 – accessed 21 July 2026
- Ofgem: TPIs market review call for input – accessed 21 July 2026
- Ofgem: setting up energy contracts, good practice – accessed 21 July 2026
