Government to regulate energy brokers to protect SMEs

24 October 2025

The UK government is planning to introduce rules to regulate third-party energy brokers and price comparison websites following concerns that some have misled small businesses and charities. In the current market, organisations have faced hidden fees, deals that favour certain suppliers, and unclear information that makes it difficult to compare contracts or challenge brokers when things go wrong.

A consultation launched in September 2024 gathered feedback from businesses, charities and industry groups. While brokers can and do help organisations navigate the energy market, the process highlighted the vulnerability of smaller organisations, which often lack the time or expertise to spot misleading practices.

Under the new rules, brokers will be required to register with Ofgem and adhere to clear standards of conduct. The regulations aim to increase transparency, protect vulnerable organisations from exploitative practices, and give businesses confidence that the advice they receive is fair. Reputable brokers will still be able to operate and innovate, while the TPI sector will cover the costs of regulation.

Legislation will be introduced when parliamentary time allows, with oversight expected to evolve as the retail energy market changes. Officials say the reforms will create a more trusted market where businesses and charities can make informed energy decisions with greater certainty.