Ofgem broker regulation — what it means for business energy buyers
Ofgem's tightening of TPI (Third Party Intermediary) rules changes what brokers must disclose. Here's what you should now expect on every quote.
The backstory
For years the non-domestic energy broker market operated with very light regulation compared to consumer finance or insurance. Commission disclosure was patchy, complaint routes were informal, and a small tail of bad-actor brokers repeatedly locked SMEs into inflated multi-year contracts with hidden uplifts baked into the unit rate. Ofgem's TPI (Third Party Intermediary) programme addresses that tail directly.
What changed
Ofgem's regulated TPI code — supported by supplier licence conditions — now requires brokers dealing with micro-business and small-business customers to disclose commission in cash and pence-per-kWh terms, provide access to an approved Alternative Dispute Resolution (ADR) scheme, and meet minimum conduct and record-keeping standards. Suppliers are required to only work with compliant brokers on those customer segments.
What you should now see on every quote
For every fixed-price quote, expect: the underlying unit rate and standing charge, the broker uplift in p/kWh, the total commission over the term in £, and the ADR scheme the broker is signed up to. If you can't see these, ask — and if the answer isn't clear, that's a signal to shortlist a different broker.
What it doesn't change
The commercial reality still applies: brokers are almost always paid by the supplier, not by you directly, and that commission is funded from the price you pay. The rules don't cap the commission; they make it visible. A visible 0.4 p/kWh uplift on a 12-month deal is often the fair market rate for a proper procurement service; a visible 1.5 p/kWh uplift on a 60-month deal to a micro-business is a signal to walk away.
How this changes your buying process
The regulation gives you a simple test: compare like-for-like quotes on total commission, not just headline unit rate. Two quotes at the same p/kWh with radically different uplifts mean radically different underlying supplier prices — which tells you who is genuinely running a wide panel and who is anchoring your view.
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