ACS (the Association of Convenience Stores) has welcomed an announcement from the Department for Energy Security and Net Zero that energy regulator Ofgem will be appointed to regulate the energy broker market.

Energy brokers, also known as third party intermediaries (TPIs), typically act as comparison services for businesses with the intention of getting them the best deal available on the market. However, due to the unregulated nature of the market, not all brokers act with their customers’ best interests in mind.

Several energy brokers have been found to only recommend energy tariffs that they receive a higher commission for, to be dishonest about the commission that they are receiving, and to mis-sell retailers on contracts that are not as beneficial as promised.

ACS has been raising concerns about unfair practices from energy brokers for several years. In its Retail Market Review in 2012, Ofgem recognised that there were issues with the energy broker market and suggested a code of practice to ensure that suppliers only worked with approved brokers, but this was only introduced as a voluntary code. Earlier this year, Ofgem rejected calls to make that code of practice mandatory.

Association of Convenience Stores chief executive James Lowman said: “We have been calling on Ofgem and the Government to do more to protect convenience retailers from rogue brokers for over a decade, and we’re pleased that action is finally being taken to regulate this market. Energy brokers can provide an important service for retailers that saves them time and money, but not all brokers operate to the same standards. We look forward to continuing to work with Ofgem to ensure that these proposals benefit retailers and stop unfair practices in the energy market from rogue brokers.”

The full announcement from the Government is available here: https://www.gov.uk/government/news/greater-protection-for-families-and-…