Ofgem has taken a significant step towards the future regulation of energy brokers and other third-party intermediaries (TPIs).
In June 2026, the regulator launched a Call for Input on the TPI market, seeking evidence on how brokers, consultants, comparison services and other intermediaries operate within the energy sector. The review forms part of Ofgem’s preparations for a future regulatory framework following the Government’s intention to appoint Ofgem as the regulator of TPIs.
For many businesses, the announcement raises an important question:
If regulation is needed now, what does that say about contracts arranged before these protections were proposed?
Why Ofgem is reviewing the broker market
Energy brokers are often the primary point of contact for businesses seeking to compare energy suppliers and secure commercial energy contracts.
However, Ofgem has identified concerns in parts of the market relating to transparency, hidden commission, mis-selling and poor customer outcomes. These concerns were among the factors behind the Government’s decision to introduce a formal regulatory regime.
The regulator is now gathering evidence to better understand how the market operates, where consumer harm may occur and what protections may be required in the future.
While the final framework has yet to be developed, Ofgem has indicated that future powers could include setting standards, monitoring compliance and taking enforcement action where necessary.
What the review says about the current market
Although the regulatory framework remains under development, the review itself is recognition that concerns exist within parts of the broker market.
For years, businesses have raised questions about:
- Undisclosed broker commission;
- A lack of transparency around broker remuneration;
- Contracts that did not reflect what was discussed during the sales process;
- Difficulty obtaining clear explanations of how energy rates were calculated.
The fact that Ofgem is preparing to regulate the sector does not automatically mean a broker has acted improperly. However, it does reflect growing concern around transparency and consumer protection in the non-domestic energy market.
Future regulation will not review historic contracts
One point businesses should be aware of is that the proposed regulatory framework is expected to look forward rather than backwards.
Future regulation may change how brokers operate and what disclosures are required. It is unlikely, however, to automatically revisit contracts that have already been signed or compensate businesses for losses they believe they have already suffered.
For businesses concerned about historic broker arrangements, waiting for regulation to arrive may not address the issue.
Why businesses should review existing energy contracts
Many commercial energy contracts were arranged before increased scrutiny of broker practices became a policy priority.
As a result, some businesses may wish to review existing or historic contracts and ask:
- Was the broker commission clearly disclosed?
- Did the broker explain how they were being paid?
- Was the cost of commission built into the unit rate?
- Were alternative options presented?
- Did the information provided allow the business to make an informed decision?
Understanding how a contract was sold and priced can help businesses assess whether further investigation is appropriate.
Can businesses challenge undisclosed commission?
Every case depends on its own facts. However, if a business believes broker commission was not properly disclosed, or that material information was withheld during the sales process, it may be worth seeking specialist advice.
Any potential claim will depend on the evidence available, the contractual arrangements involved and applicable limitation periods.
How Business Energy Claims can help
Business Energy Claims helps businesses investigate whether undisclosed commission or excessive broker charges may have been added to their energy contracts.
Our team can review commercial energy agreements, assess how broker remuneration was structured and provide an initial view on whether there may be grounds to pursue a claim.
If you are concerned about how an energy contract was arranged or whether commission was properly disclosed, contact Business Energy Claims to discuss with industry and legal experts.