What is energy broker regulation, and what has changed?
Energy broker regulation moved from a promise to a draft law on 4 November 2026, when the government introduced the Energy Independence Bill to Parliament. If it passes, Ofgem will regulate energy brokers, price comparison services and other intermediaries for the first time.
That matters to any firm that has ever taken a cold call offering to “review” its energy contract. At the moment the regulator oversees suppliers, not the brokers who sell their contracts. The Bill is designed to close that gap.
It isn’t law yet, and the government hasn’t said when energy broker regulation would start. Here’s what its own factsheet says the Bill would do, and what your business can sensibly do in the meantime.
Key takeaways
- The Energy Independence Bill would make Ofgem the regulator for energy brokers and comparison services.
- Brokers would have to pass an authorisation process and follow rules Ofgem sets.
- Ofgem could order redress, levy fines and permanently ban the worst offenders.
- Nothing changes until the Bill passes, so until energy broker regulation is in force the checks you make on a broker today still matter.
What would energy broker regulation let Ofgem do?
Three things, according to the government’s factsheet on the measure. Ofgem would be granted a strong set of regulatory tools to create rules for intermediaries, require them to pass an authorisation process, and robustly monitor how they behave.
It would also get enforcement powers. The factsheet says Ofgem will be empowered to take decisive enforcement action if intermediaries break the rules, including ordering redress for consumers, levying fines, and permanently prohibiting what it calls malicious actors from the market. The factsheet notes that businesses and good faith intermediaries have themselves been calling for regulation with “teeth” to crack down on harmful actors in the market.
| Area | Now | Under the Bill, if passed |
|---|---|---|
| Who regulates brokers | No direct regulator | Ofgem |
| Entry to the market | No authorisation needed | Authorisation process set by Ofgem |
| Standards | Vary by broker | Consistent rules on behaviour and complaints handling |
| When things go wrong | Only some business customers can use out of court dispute resolution | Ofgem can order redress, fine and ban |
Based on the government’s factsheet, Regulation of third-party intermediaries, published 4 November 2026.
Why does the government think brokers need a regulator?
Because of how brokers are paid, which is the problem energy broker regulation is meant to fix. The factsheet names payment by commission, and suppliers’ ability to gatekeep access to pricing, as structural causes that can make the most profitable choice for the broker directly opposed to the customer’s best interest.
It’s careful about scale. The government says a small minority of intermediaries exploit consumers through pressure selling techniques and profiteering through high rates of commission, not the market as a whole. It also points out that other markets where intermediaries arrange contracts, such as stockbrokers and pensions advisers, have an oversight body, and that energy intermediaries are one of the last comparable markets without one.
For small businesses, the factsheet says energy broker regulation is aimed at protecting customers from unwanted cold calls, high pressure sales, and hidden, excessive rates of commission. Those are the government’s words and its aims. Whether the final rules deliver them depends on what Ofgem writes.
How much could it save businesses?
The government gives two estimates, and they cover different groups. Its press release says regulating brokers is expected to save businesses around £100 million a year, and the Bill overview says it could save more than £100 million a year. The factsheet on the measure looks at small businesses only, and says they could save more than £300 million over the next decade.
Both are government estimates across the whole market, drawn from an impact assessment and made before Ofgem has written any rules. They aren’t a saving any one firm should expect.
When would energy broker regulation start?
Not yet, and nobody has given a date. The Energy Independence Bill has to pass through Parliament first. After that, Ofgem would need to design the authorisation process and write the rules, and the government says secondary legislation is needed to put the Bill’s measures fully into effect.
So treat energy broker regulation as a direction of travel for now. If a broker tells you this week that they’re “Ofgem regulated”, ask what they mean, because the regime the Bill describes doesn’t exist yet.
Our earlier guide to business energy brokers and the rules that already apply sets out what you’re entitled to be told today.
What should your business do in the meantime?
The same checks you’d want to make after energy broker regulation arrives, just without a regulator to make them for you.
Ask what the broker is paid and how. Commission is often built into the rates you pay, so ask for the figure in pence per unit and in pounds over the full contract, and ask for it in writing. Our guide to hidden broker commissions explains where the cost tends to sit.
Ask how many suppliers were compared, and see the quotes. A recommendation drawn from two suppliers isn’t a view of the market. Never agree a contract on a first call, and ask for the terms in writing before you say yes.
Know your own position too. The smallest firms have extra protections, which our guide to microbusiness energy rights covers. And compare at least once without a broker in the room, so you have a number to hold theirs against. Rates vary with your usage, meter type and credit history, so any price you see is an estimate until it’s quoted for your business.
Frequently asked questions about energy broker regulation
- Are energy brokers regulated by Ofgem now?
- Not directly. The Energy Independence Bill, introduced on 4 November 2026, would appoint Ofgem as their regulator if it becomes law.
- Will energy broker regulation mean brokers need a licence?
- The government’s factsheet says Ofgem would be able to require intermediaries to pass an authorisation process. The detail hasn’t been published.
- Does the Bill cover price comparison sites?
- Yes. It covers energy brokers, price comparison services and other third party intermediaries, for households and businesses.
- Can I get compensation if a broker mis-sold my contract?
- Under the Bill, Ofgem could order redress. Until it’s law, your options depend on your supplier, your broker and the size of your business, so take advice on your own case.
Sources
- GOV.UK factsheet, Regulation of third-party intermediaries, published 4 November 2026: Ofgem as regulator, the authorisation process, enforcement powers, the reasons for legislating, the “teeth” wording, the aims for small businesses, out of court dispute resolution and the £300 million estimate.
- GOV.UK, Energy Independence Bill overview, published 4 November 2026: the more than £100 million a year estimate and the need for secondary legislation.
- GOV.UK press release, Energy reforms to cut bills and put power back in people’s hands, published 4 November 2026: the date the Bill was introduced and the around £100 million a year estimate.
Checked 11 November 2026. All three GOV.UK pages show “Published 4 November 2026” and no last updated line.
