The UK government has introduced new measures to protect businesses from unscrupulous energy brokers.
New proposed regulations, now under consultation, will mandate energy brokers to transparently disclose their commission fees to clients, aiming to eliminate hidden charges.
Ofgem, the UK’s energy regulator, will enforce new rules and has the authority to take action against brokers who fail to meet these requirements.
These regulations aim to shield businesses from misleading contracts and hidden fees.
Energy brokers typically help businesses handle the complexities of the energy market, working to secure competitive prices and favorable contract terms for their clients.
“Too many families and businesses, already burdened by the energy crisis, have been exploited due to poor practices by energy intermediaries,” stated Miuatta Fahnbulleh, the minister for energy consumers.
“These unregulated third parties and rogue brokers have been able to deceive consumers without any oversight or consequences,” she continued.
“The energy market can be very confusing for small firms, and many find brokers helpful in securing the best deals,” explained Tina McKenzie, policy chair of the Federation of Small Businesses (FSB).
“However, not all third-party intermediaries operate in the best interests of small business customers, and there is widespread skepticism among small businesses about their motives.
The FSB has consistently advocated for stricter regulations to curb questionable practices by a significant minority of third-party intermediaries, aiming to improve how the energy market serves small business consumers,” McKenzie added.
