Tina McKenzie, Policy Chair, Federation of Small Businesses (FSB), said, “We are very pleased to see that the government is proposing that energy brokers will be compelled to be more transparent about fees and contract terms, and that the complaint and dispute resolution process will be more robust.
“The energy market can be very confusing to navigate for small firms, and many find brokers are helpful to find the best possible deal. 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.
“This will drive up confidence and create a fair and level playing field for small businesses as they get past the energy crisis and look to the future, with the right deal for them.”
Taken together, the measures being proposed are all designed to protect consumers, but also raise standards and ensure fair competition in the energy market of the future.
Subject to the consultation, a new regulatory regime will:
- put in place a coherent approach to regulation of TPIs
- ensure fairness, equity and consumer empowerment in interactions with TPIs, enabling informed decision-making
- require price transparency for consumers within the TPI sector
- provide a suitable remedy for customer harm if it does occur
- accommodate both existing and future TPI business models whilst also being proportionate to the harm or risk of harm identified
- encourage innovation, measures that will contribute towards net zero, and fair market competition
These measures and standards will also be future-proofed, enabling this relatively new market to continue evolving, and making use of new technologies such as artificial intelligence to deliver the best service, and savings, for consumers and businesses.
