Ofgem has set out plans to protect small businesses from misselling by energy brokers, through the creation of a new Code of Practice (CoP) for the sector.
As part of its Retail Market Review, Ofgem committed to reviewing the practices of non-domestic third party intermediaries (TPIs) – also known as brokers. Over the last year or so, Ofgem has been developing a draft CoP for these businesses.
The draft CoP includes a range of measures that seek to ensure that accredited non-domestic TPIs act in a “fair, honest, transparent, appropriate and professional manner”. It also encourages best practice on issues such as the provision of information before and after any agreements are made between the customer and the TPI, as well as training and complaint handling.
On 14 February, the energy regulator issued a consultation on the development of a regulatory framework for the draft CoP. Four options were put forward: to leave non-domestic TPIs to be governed by existing legislation; introduction of a voluntary CoP; creating a TPI CoP underpinned by a licence condition on suppliers to work only with TPIs accredited to this code; and licensing of non-domestic TPIs.
Regulator plans TPI Code to protect businesses from misselling