The UK government has announced new measures to safeguard businesses from the practices of “rogue” energy brokers.
Under new regulations currently undergoing consultation, energy brokers will be required clearly to disclose their commission fees to clients, a move aimed at preventing hidden charges.
Ofgem, the UK’s energy regulator, will enforce these rules and has the authority to take action against brokers who do not comply with the new requirements.
The changes seek to protect businesses from misleading contracts and undisclosed fees.
Energy brokers are meant to assist businesses in navigating the complexities of the energy market, often working to find competitive pricing and more favourable contract terms on behalf of their clients.
“Too many families and businesses, already struggling with the effects of the energy crisis, have fallen victim to poor practices by energy intermediaries,” said Minister for Energy Consumers Miuatta Fahnbulleh.
“These unregulated third parties and rogue brokers have had licence to scam consumers without oversight or facing consequences,” she added.
“The energy market can be very confusing to navigate for small firms, and many find brokers are helpful to find the best possible deal,” said Tina McKenzie, policy chair of the Federation of Small Businesses (FSB).
“However, this is not the case for all third-party intermediaries and there is widespread scepticism among small businesses as to whether they truly act in the small business customer’s best interests.
FSB has long called for tougher rules to crack down on questionable practices among a significant minority of third-party intermediaries, to make the energy market work better for small business consumers.”