Ofgem will tomorrow announce a big initiative to tackle mis-selling of energy contracts by brokers to small and medium-sized firms.
An industry source said the watchdog was 'determined to tackle those brokers acting against the interests of small business customers'.
Ofgem is believed to fear the activities of some brokers could deter firms from using genuinely helpful intermediaries.
Financial Mail has long campaigned for action against rogue brokers who get firms to sign up to long, costly contracts.
Most mis-selling complaints relate to verbal contracts. These are legally binding, yet there is no requirement for brokers to keep recordings of calls.
To make matters worse, Ofgem currently has no direct power over brokers.