The Association of Convenience Stores (ACS) has welcomed plans for energy regulator Ofgem to oversee the energy broker market, following years of concerns about rogue brokers exploiting convenience retailers.
New measures would “stamp out exploitation” when dealing with energy brokers and price comparison sites, collectively known as third-party intermediarie (TPIs), said the Department for Energy Security and Net Zero (DESNZ).
Until now, TPIs have been unregulated, allowing rogue brokers to use predatory sales tactics to take advantage of customers, selling them overpriced contracts in return for higher commission fees.
Ofgem will be appointed to “put an end” to such exploitation, ensuring small businesses are no longer taken advantage of and can save money on their bills through improved competition and lower commissions, announced the DESNZ.
The ACS has raised concerns about unfair practices from energy brokers for several years.
“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,” said James Lowman, chief executive of the ACS.
“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.”
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