Right this moment is an efficient information day!
The Division for Vitality Safety & Internet Zero (DESNZ) has printed their report on third-party intermediaries (TPIs) within the vitality market. ‘TPI’ is a strategy to describe firms like vitality brokers and worth comparability web sites. Ones that arrange vitality customers with new suppliers.
At Octopus Vitality for Enterprise, we don’t work with TPIs. We predict vitality works finest when it’s easy, truthful and clear. So, you will not see us on any worth comparability web sites; we solely promote on to prospects.
Actually, we’ve been campaigning to enhance the vitality dealer system for years. We predict it ought to do extra to guard business vitality customers.
That excellent news I discussed? DESNZ agrees. Their report paves the best way for an vitality system with extra regulation and scrutiny for brokers – and higher offers for British companies.
Let’s take a deeper look.
The outcomes of this DESNZ report will enhance the vitality system for companies
The findings are the product of an enormous nationwide session. With vitality suppliers (like us), client advocates, enterprise prospects and the TPIs themselves.
Our bodies throughout the business referred to as for extra accountability, transparency and equity. Listed below are the adjustments that DESNZ is implementing in consequence:
Ofgem will now regulate TPIs
Ofgem is already the regulator for vitality suppliers. However, up till now, TPIs weren’t below their remit. So – though they had been working within the area between suppliers and prospects – they didn’t have anybody regulating them.
Going ahead, Ofgem will tackle that job. DESNZ has tasked them with implementing the adjustments this report recommends – and creating extra guidelines and protections.
This isn’t simply good for customers. It’s good for the TPIs themselves. They’ll now have a regulatory physique that helps good administration and practices.
Plus, let’s not neglect that a great deal of TPIs work correctly. They’re going to profit from the area having an improved popularity.
Vitality brokers must present they’re compliant earlier than they begin working
TPIs must register with Ofgem. They will solely be energetic when Ofgem says they’ve met their authorisation necessities. This consists of proving they’re compliant and passing a match and correct individuals check.
There are extra methods to carry TPIs to account
DESNZ has set out new methods to problem TPIs’ behaviour. Ofgem will have the ability to give them penalties – like fining them or taking away their permission to function.
It’ll be simpler for patrons to take action, too. There’ll be higher entry to dispute decision schemes, for instance.
New ideas and guidelines are on the best way
For this, DESNZ has handed the baton to Ofgem. Going ahead, the regulator will announce new guidelines and protections for customers. We hope these will tackle points like uncapped dealer commissions and unsolicited contacting of vitality customers.
“We’ve been campaigning for extra rigorous protections within the vitality dealer marketplace for years, and it’s nice to see the federal government ramping up regulation to make the market fairer.
Companies are already feeling the pinch from a few of the highest vitality costs in Europe – they shouldn’t have to fret about brokers driving prices even increased with predatory ways.“
– Zoisa North-Bond, CEO of Octopus Vitality for Enterprise
This exhibits our marketing campaign to enhance the vitality system is working
We’ve been attempting to repair the vitality dealer system for years.
Again in August 2023, we printed our personal report: Small companies at midnight: Vitality brokers and the hidden scandal in vitality costs. It was our method of centring the voices and experiences of regular enterprise house owners. It was primarily based on a survey of our prospects to search out out their views of TPIs.
This chart exhibits a couple of of the adjustments they needed to see. (We have up to date the info to replicate a repeat of the survey from spring 2025. The headlines stay the identical: a transparent majority of companies need extra regulation and safety.)
Our report turned these survey responses into 3 key steps for a greater system:
- Vitality brokers to be correctly regulated
- No hidden dealer commissions and a cap on commissions
- An finish to unsolicited contact from brokers
Let’s revisit these in gentle of DESNZ’s new rules.
Step |
Why is that this necessary? |
Does the brand new regulation ship? |
|---|---|---|
| Vitality brokers to be correctly regulated | The federal government ought to appoint a public physique to manage TPIs.
In any other case, they don’t fall into the regulatory remit of any public physique. Which implies they’re topic to much less scrutiny and monitoring. |
Sure!
It is a enormous step ahead for the TPI system. Now, they’ll have correct regulation – like vitality suppliers. |
| No hidden commissions and a cap on commissions | Shoppers ought to have transparency over what they’re paying for.
However, some brokers are including prices on to prospects’ vitality offers and taking that additional as fee. They have not all the time informed prospects they’re doing it. And there’s no restrict on how a lot they’ll add. So, customers are shedding out. |
Not explicitly, however we’re hopeful that it is a little additional down the street.
There’s been some progress lately. For instance, brokers now must be extra clear about their charges. However issues over the quantity of commissions stays – and have been outstanding in client suggestions. So, this must be close to the highest of Ofgem’s agenda. To facilitate this, we’ll preserve campaigning for a greater deal for enterprise prospects. |
| An finish to unsolicited contact from brokers | Shoppers don’t have management over how they have interaction with brokers. They need to solely obtain contact in the event that they’ve explicitly opted in.
In any other case, they’re weak to barrages of calls and emails which put numerous strain on them to modify. |
Once more, time will inform. However we predict that is one other level that Ofgem may have plenty of curiosity in.
There’s an ideal alternative right here to guard customers from chilly callers and pressurising ways. We’ll carry on calling for a repair to this downside. |
We’re delighted with this progress, however we all know there’s extra to do
That is excellent news for customers, who’ll be extra protected and fewer weak.
It’s excellent news for TPIs themselves, who’ll be a part of a system with an improved popularity (and will not must share it with any dishonest operators).
And it’s excellent news for suppliers like us, who’ll be a part of an altogether extra clear system.
However, we’re not stopping right here. We’re going to maintain preventing for our different 2 prompt steps to be carried out. And – after all – we’ll nonetheless solely promote on to prospects. That’s how we will be certain that they get the fairest and finest worth offers.
See what Octopus can do for what you are promoting
We’ll assure you nice worth, award-winning customer support and – after all – clear pricing.
