Success! New regulation on brokers will make energy fairer for businesses
Today is a good news day!
The Department for Energy Security & Net Zero (DESNZ) has published their report on third-party intermediaries (TPIs) in the energy market. ‘TPI’ is a way to describe companies like energy brokers and price comparison websites. Ones that set up energy users with new suppliers.
At Octopus Energy for Business, we don’t work with TPIs. We think energy works best when it’s simple, fair and transparent. So, you won't see us on any price comparison websites; we only sell directly to customers.
In fact, we’ve been campaigning to improve the energy broker system for years. We think it should do more to protect commercial energy users.
That good news I mentioned? DESNZ agrees. Their report paves the way for an energy system with more regulation and scrutiny for brokers – and better deals for British businesses.
Let’s take a deeper look.
The outcomes of this DESNZ report will improve the energy system for businesses
The findings are the product of a big nationwide consultation. With energy suppliers (like us), consumer advocates, business customers and the TPIs themselves.
Bodies across the industry called for more accountability, transparency and fairness. Here are the changes that DESNZ is implementing as a result:
Ofgem will now regulate TPIs
Ofgem is already the regulator for energy suppliers. But, up until now, TPIs weren’t under their remit. So – even though they were operating in the space between suppliers and customers – they didn’t have anyone regulating them.
Going forward, Ofgem will take on that job. DESNZ has tasked them with implementing the changes this report recommends - and developing more rules and protections.
This isn’t just good for consumers. It’s good for the TPIs themselves. They’ll now have a regulatory body that supports good management and practices.
Plus, let's not forget that loads of TPIs work properly. They'll benefit from the space having an improved reputation.
Energy brokers will have to show they’re compliant before they start operating
TPIs will have to register with Ofgem. They can only be active when Ofgem says they’ve met their authorisation requirements. This includes proving they’re compliant and passing a fit and proper persons test.
There are more ways to hold TPIs to account
DESNZ has set out new ways to challenge TPIs’ behaviour. Ofgem will be able to give them penalties – like fining them or taking away their permission to operate.
It’ll be easier for customers to do so, too. There’ll be better access to dispute resolution schemes, for example.
New principles and rules are on the way
For this, DESNZ has handed the baton to Ofgem. Going forward, the regulator will announce new rules and protections for consumers. We hope these will address issues like uncapped broker commissions and unsolicited contacting of energy users.
"We’ve been campaigning for more rigorous protections in the energy broker market for years, and it’s great to see the government ramping up regulation to make the market fairer.
Businesses are already feeling the pinch from some of the highest energy prices in Europe – they shouldn’t have to worry about brokers driving costs even higher with predatory tactics."
- Zoisa North-Bond, CEO of Octopus Energy for Business
This shows our campaign to improve the energy system is working
We’ve been trying to fix the energy broker system for years.
Back in August 2023, we published our own report: Small businesses in the dark: Energy brokers and the hidden scandal in energy prices. It was our way of centring the voices and experiences of normal business owners. It was based on a survey of our customers to find out their views of TPIs.
This chart shows a few of the changes they wanted to see. (We've updated the data to reflect a repeat of the survey from spring 2025. The headlines remain the same: a clear majority of businesses want more regulation and protection.)
Our report turned these survey responses into 3 key steps for a better system:
- Energy brokers to be properly regulated
- No hidden broker commissions and a cap on commissions
- An end to unsolicited contact from brokers
Let’s revisit these in light of DESNZ’s new regulations.
Step |
Why is this important? |
Does the new regulation deliver? |
|---|---|---|
| Energy brokers to be properly regulated | The government should appoint a public body to regulate TPIs. Otherwise, they don’t fall into the regulatory remit of any public body. Which means they’re subject to less scrutiny and monitoring. |
Yes! This is a huge step forward for the TPI system. Now, they’ll have proper regulation - like energy suppliers. |
| No hidden commissions and a cap on commissions | Consumers should have transparency over what they’re paying for. But, some brokers are adding costs on to customers’ energy deals and taking that extra as commission. They haven't always told customers they’re doing it. And there’s no limit on how much they can add. So, consumers are losing out. |
Not explicitly, but we’re hopeful that this is a little further down the road. There's been some progress in recent years. For example, brokers now have to be more transparent about their fees. But concerns over the amount of commissions remains - and have been prominent in consumer feedback. So, this should be near the top of Ofgem’s agenda. To facilitate this, we’ll keep campaigning for a better deal for business customers. |
| An end to unsolicited contact from brokers | Consumers don’t have control over how they engage with brokers. They should only receive contact if they’ve explicitly opted in. Otherwise, they’re vulnerable to barrages of calls and emails which put lots of pressure on them to switch. |
Again, time will tell. But we think this is another point that Ofgem will have a lot of interest in. There’s a great opportunity here to protect consumers from cold callers and pressurising tactics. We’ll keep on calling for a fix to this problem. |
We're delighted with this progress, but we know there’s more to do
This is good news for consumers, who’ll be more protected and less vulnerable.
It’s good news for TPIs themselves, who'll be part of a system with an improved reputation (and won't have to share it with any dishonest operators).
And it’s good news for suppliers like us, who’ll be part of an altogether more transparent system.
But, we’re not stopping here. We’re going to keep fighting for our other 2 suggested steps to be implemented. And - of course - we’ll still only sell directly to customers. That’s how we can make sure they get the fairest and best value deals.
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Published on 30th October 2025 by:
Hey I'm Constantine, welcome to Octopus Energy!
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