In short
Energy brokers in the UK are not yet directly regulated by Ofgem. Ofgem regulates suppliers, and supplier rules reach brokers indirectly: redress scheme membership, broker costs in principal terms and the Standards of Conduct. The government intends to make Ofgem the regulator of third-party intermediaries, which needs new legislation.
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The position today: regulated through suppliers
Ofgem licenses and regulates energy suppliers. Energy brokers, consultants and comparison sites, which Ofgem and the government call third-party intermediaries (TPIs), do not hold an Ofgem licence. Ofgem's June 2026 call for input describes the government's plan to appoint Ofgem as their regulator, which tells you that it is not their regulator yet.
That does not leave brokers free of rules. Because suppliers are responsible for how they deal with business customers, and most brokers depend on suppliers for their commission, several supplier licence rules shape what brokers can do:
| Rule on suppliers | Effect on brokers | From |
|---|---|---|
| Broker costs in the principal terms of microbusiness contracts | Commission paid to brokers must be shown to microbusiness customers | 1 October 2022 |
| Suppliers may only work with brokers in a qualifying dispute resolution scheme (microbusiness contracts; Ofgem announced an extension to small business contracts in April 2024) | Brokers working with suppliers join a scheme such as the Energy Ombudsman's | 1 December 2022 |
| Standards of Conduct extended to all non-domestic customers | Suppliers must treat business customers of every size fairly | 1 July 2024 |
| Broker costs in principal terms for all non-domestic contracts signed from that date, and on request | Commission must be visible to every business customer | 1 October 2024 |
These rules are the reason you can see a broker's commission in your contract and take a complaint about a broker to an ombudsman. Our energy broker fees and energy broker ombudsman pages cover both in practical terms, and microbusiness energy rules covers the extra protections for the smallest businesses.
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Why the government wants to regulate brokers directly
In September 2024 the government consulted on regulating TPIs in the retail energy market. Its response, on GOV.UK (page updated 23 October 2025), says the feedback gave it "increased confidence that direct regulation of the third-party intermediary (TPI) market is the right decision for consumers".
The response describes problems in the market, including:
- Brokers charging hidden fees or commission
- Brokers only seeking quotes from favoured suppliers
- In the business market, brokers misrepresenting themselves as energy suppliers and contributing to change of tenancy problems
- Poor sales practices, including failing to explain exit fees and that there is no cooling-off period for business energy contracts
- Difficulty for customers in resolving complaints
It also says direct regulation aims to protect small businesses and charities from excessive commissions, while letting good brokers compete on a level playing field.
What the government intends to do
The government response says that, when parliamentary time allows, it intends to bring forward legislation to:
- Appoint Ofgem as the regulator for TPIs, with powers to make rules, monitor the market and investigate
- Require TPIs to register. Ofgem would design a registration process. The response says Ofgem is expected to run a sunrise period of 12 to 18 months for TPIs to register, after which it would become illegal to operate as a TPI without Ofgem authorisation
- Set principles first, then detailed rules. High-level principles would come in soon after Ofgem's appointment, with fuller rules developed afterwards
- Extend consumer advocacy to this part of the market
- Recover the cost of regulation from the TPI market
Scope is defined by what a firm does, not how it is set up. The response names energy brokers and sub-brokers, auto-switchers, price comparison sites and bill splitters as the highest-priority types, and brings resellers and aggregators into scope too. For business customers, it points to more transparency on fees and less reliance on indirect funding models, meaning commission paid through suppliers.
None of this is in force yet, and we do not predict when it will be. The timetable depends on Parliament and then on Ofgem's own process.
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Ofgem's market review of energy brokers
On 4 June 2026, Ofgem published a call for input on its Third-Party Intermediaries market review, with responses due by 16 July 2026. It says the upcoming Energy Independence Bill, announced in the King's Speech, will among other things set out powers for Ofgem to set rules for TPIs, monitor the market and act where harm occurs, for both homes and businesses.
Ofgem lists among its concerns mis-selling, pressure selling, low transparency with consumers and misaligned incentives. The review looks at how the TPI market is structured, how competition works, incentives that may distort broker behaviour and the outcomes for different types of customer. Ofgem says it intends to publish a final report in winter 2026/27, and that its findings will inform a later consultation on the design of the regulatory regime.
For buyers, the practical message is that commission, transparency and complaint handling are under active scrutiny, so it is worth asking any broker about all three now.
Voluntary codes of practice
Alongside the formal rules, Ofgem's call for input lists voluntary codes that brokers can choose to sign up to:
| Code | Who it is for |
|---|---|
| Retail Energy Code Company (RECCo) TPI Code of Practice | Third-party intermediaries in the retail energy market |
| Utilities Intermediaries Association (UIA) Code of Practice | UIA members (Ofgem also points to the UIA accredited member list when checking a broker) |
| The Confidence Code | Price comparison websites only |
Membership of a voluntary code is a useful signal, but it is not the same as the mandatory redress scheme membership that applies to brokers paid by suppliers. Check both.
What this means when you choose a broker today
Until direct regulation arrives, the protections you have come from supplier rules, the redress schemes and your own checks. Before you agree a contract through any broker:
- Check redress scheme membership on the Energy Ombudsman broker register or the UIA accredited list.
- Ask how the broker is paid and compare the answer with the broker costs in your principal terms.
- Ask which suppliers were compared. A panel is normal; you should know what it covers.
- Read the contract terms, including what happens at the end. There is no cooling-off period for business energy once you agree.
- Keep records of what you were told and when, in case you need to complain.
On this site, Forever Communications works as an agent of Fidelity Energy, which is on the Energy Ombudsman's broker register and sets out its commission in its terms and your contract documents. Read what is an energy broker for the basics, or contact us if you would like Fidelity Energy's panel to quote for your supplies.
How Forever Communications helps with business energy
Forever Communications is part of Forever Group, which looks after phone systems, business mobiles and connectivity for UK organisations. For business electricity and gas, we work as an agent of Fidelity Energy, an independent business energy broker that prices your requirements across its panel of suppliers. We are not an energy supplier, and neither is Fidelity Energy.
- Like-for-like quotes: we help you gather your bills, meter details and contract end dates so suppliers quote on the same basis
- Plain-English terms: we can talk you through unit rates, standing charges, contract length, renewal and the broker commission included in the price before you decide
- Better timing: we help you plan a renewal ahead of your contract end date, or move off deemed and out-of-contract rates
- More than the basics: Fidelity Energy also offers green (REGO-backed) electricity, flexible procurement, half-hourly supplies, multi-site contracts and bill validation
- Your choice: you decide which quote, if any, to accept; prices are set by the suppliers and confirmed at quote
We work with businesses, charities, hospitality, farms and multi-site organisations. Send us a recent bill and we can take it from there.
Frequently asked questions
Are energy brokers regulated by Ofgem?
Not directly, as of November 2026. Ofgem regulates energy suppliers, and its supplier rules reach brokers indirectly through redress scheme membership, broker cost disclosure and the Standards of Conduct. The government intends to appoint Ofgem as regulator of brokers and other intermediaries, which needs new legislation.
When will energy brokers be regulated?
There is no confirmed date. The government says it will legislate when parliamentary time allows, and Ofgem's June 2026 call for input refers to the Energy Independence Bill announced in the King's Speech. After Ofgem opens registration, the government expects a 12 to 18 month sunrise period.
What is a third-party intermediary in energy?
It is the term Ofgem and the government use for firms that sit between customers and energy suppliers, such as energy brokers, consultants, sub-brokers, price comparison sites and auto-switchers.
Do energy brokers have to disclose commission?
Suppliers must show broker costs in the principal terms of business energy contracts: for microbusinesses from 1 October 2022 and for all non-domestic contracts signed on or after 1 October 2024, and give you the information on request.
What codes of practice apply to energy brokers?
Voluntary codes include the RECCo TPI Code of Practice and the UIA Code of Practice, with the Confidence Code for price comparison sites. They are separate from the requirement for brokers paid by suppliers to belong to an approved redress scheme.
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