Energy brokers are finally being brought into regulation. Here is where that stands.
Ofgem confirmed in July 2026 that it is preparing to regulate third-party intermediaries. Government intends to give it the power to set rules and require brokers to register before they can trade.
Regulation · 23 July 2026
The commercial energy brokerage sector has operated largely outside statutory regulation for its entire existence. Suppliers are licensed; the intermediaries who sell on their behalf, for the most part, are not. That is changing.
What Ofgem said
In a blog published on 20 July 2026, Ofgem's Deputy Director for Consumer Protection and Competition, Louise van Rensburg, confirmed the regulator is "preparing to regulate this sector". Ofgem named the problems it has identified in parts of the market directly: a lack of transparency, mis-selling, hidden commissions, and poor access to help when things go wrong.
Government intends to appoint Ofgem as the regulator and to give it powers to make rules, monitor the market, and require intermediaries to register before operating. Registration is the significant one. It turns brokerage from something anyone can set up on a Monday into a permissioned activity.
What exists in the meantime
Ofgem has published good practice principles for intermediaries, built around three outcomes for customers. They should:
- get clear, accurate and timely information to help them make informed choices
- have their concerns and complaints addressed fairly, effectively and promptly
- be charged prices that reflect fair value for the service the intermediary provides
Ofgem is explicit that these are not enforceable rules. They are a statement of what good looks like ahead of a framework with teeth behind it.
Timing
Ofgem has said it wants to complete its market review during 2026 and will set out initial proposals for consultation the following year. Formal powers, rules, and a registration regime will take longer still.
Why this matters for historic contracts
Regulation is forward-looking. It will not refund a business that overpaid on a three-year contract signed in 2021. The route for historic loss remains a civil claim, or in some cases a complaint through the Energy Ombudsman.
What the regulatory direction does provide is context. When a regulator names hidden commissions as a harm it intends to legislate against, it becomes harder to characterise a business that raises the same complaint about its own contract as opportunistic.