Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
Ofgem is introducing mandatory licensing for business energy brokers (TPIs) following widespread mis-selling scandals and a PS2 billion class action over undisclosed commissions. The licensing regime is expected in 2027. Currently, business energy brokers are unregulated. Kaeltripton does not act as a TPI and does not receive energy broker commissions.
What Is Ofgem TPI Regulation and Why Does It Matter?
Direct answer
What is Ofgem TPI regulation for business energy brokers?
Ofgem is developing mandatory licensing for Third Party Intermediaries (energy brokers) in the business energy market, expected in 2027. Currently business energy brokers are unregulated and not required to disclose commissions. Following BBC Watchdog investigations and a PS2 billion class action over undisclosed broker commissions, Ofgem's licensing will require brokers to be licensed, disclose commissions, and meet minimum conduct standards.
Check your business energy contract for commission disclosure
Ask your broker in writing: what commission did you receive from the supplier for this contract? They should disclose this. Keep their response.
Compare your contract rate against market
Check whether the rate you are on is significantly above the market rate for equivalent business energy contracts at the time of signing. A large gap may indicate an undisclosed commission arrangement.
Complain about undisclosed commissions
Write to the broker and supplier jointly. State that the undisclosed commission constitutes a breach of your broker's fiduciary or agency duty. Request the commission be disclosed and the contract be rescinded if the commission was material.
Contact the Energy Ombudsman if a micro-business
Micro-businesses (fewer than 10 employees or less than 100,000 kWh annual energy use) can access the Energy Ombudsman scheme for energy disputes.
Seek legal advice for large undisclosed commissions
For large businesses with significant undisclosed commission claims, legal advice is recommended. The PS2 billion class action may be relevant.
| Market | Broker regulation | Commission disclosure | Complaint route |
|---|---|---|---|
| Consumer energy (domestic) | FCA regulated under CONC/ICOBS | Required for FCA-authorised brokers | Energy Ombudsman / FOS |
| Business energy (SME) | Currently unregulated -- TPI licensing 2027 | Not currently mandatory | Energy Ombudsman (micro-business) / courts |
| Business energy (large) | Currently unregulated | Not currently mandatory | Courts / BEDR scheme |
Related KT guides
Frequently Asked Questions
What is Ofgem TPI regulation?
TPI stands for Third Party Intermediary -- energy brokers and comparison services that help businesses find energy contracts. Ofgem has been developing a mandatory licensing regime for TPIs in the business energy market following widespread mis-selling scandals, BBC Watchdog investigations and a PS2 billion class action against TPI practices. As of June 2026, Ofgem's TPI licensing framework is expected to be introduced in 2027. The framework will require business energy brokers to be licensed, disclose their commissions, and meet minimum conduct standards.
Why is TPI regulation being introduced?
Ofgem identified systemic mis-selling in the business energy broker market including: undisclosed commissions paid by suppliers to brokers (creating conflicts of interest), inaccurate comparisons, pressure selling, and contract terms that locked businesses into expensive deals. The BBC Watchdog investigations (2022-2023) exposed practices where brokers received commissions of PS3,000-PS5,000 per business customer switched, with no obligation to disclose this to the customer. The PS2 billion class action against major suppliers and brokers for undisclosed commission is ongoing as of June 2026.
Does TPI regulation affect consumer energy markets?
No. The TPI regulation being developed by Ofgem is specifically for the non-domestic (business) energy market. Consumer energy intermediaries (domestic comparison websites) are already regulated by the FCA under CONC and ICOBS. Business energy brokers are not currently FCA-regulated and operate without mandatory licensing -- this is the gap the TPI licensing regime aims to close.
What should a business do about undisclosed broker commissions?
If your business energy broker did not disclose their commission from the supplier when arranging your contract, this may be grounds for a mis-selling complaint. Write to the broker and the supplier requesting full disclosure of all commissions paid. If the commission was material and undisclosed, you may have grounds to claim the commission back under agency law. The Energy Ombudsman handles some micro-business energy disputes, but most business energy complaints must go to court or the business energy dispute resolution scheme (BEDR).
How does KT's editorial position relate to TPI regulation?
Kaeltripton.com publishes independent editorial content and does not act as a TPI. The site does not arrange business energy contracts, does not receive commissions from energy suppliers for referring business customers, and does not route leads to specific brokers. This positions KT on the publisher side of the regulatory line -- generating advertising revenue from clearly labelled display advertising and directory listings, not from energy broker commissions subject to the incoming TPI regime.
Primary sources
Kael Tripton Ltd is registered with the Information Commissioner's Office under registration number ZC135439.
