Are energy brokers regulated?

Short answer: not directly. As of November 2026, Ofgem does not license, authorise or supervise energy brokers (the industry calls them third-party intermediaries, or TPIs). The government has said it wants Ofgem to take on that job, but the legal powers are not in place yet.

That does not mean brokers operate in a free-for-all. Rules reach them from three directions: the suppliers they sell for, general consumer law and the dispute schemes they have to join. This page explains each layer, what is planned next and how to protect yourself in the meantime.

What "not regulated" actually means

A regulated firm, such as a bank or a gas supplier, needs a licence and can be fined or struck off by its regulator. Brokers do not have that. Ofgem's own guidance says it does not license TPIs and does not approve the dispute schemes they join. Anyone can set up as a broker without Ofgem's permission.

The broker also does not supply your energy. Your contract is always with a licensed supplier; the broker simply finds, sells or manages it for you.

The rules that do reach brokers today

1. Rules placed on suppliers

Ofgem regulates suppliers, and it uses supplier licences to set conditions on how they deal with brokers:

• Broker costs must be disclosed. If a broker is paid through your supplier (added to your unit rate or standing charge), the total cost over the contract must be shown in the contract's Principal Terms. This applied to microbusinesses from 1 October 2022 and to all non-domestic customers for contracts signed on or after 1 October 2024.
• Brokers must belong to a dispute scheme. Suppliers may only work with brokers signed up to a qualifying dispute settlement scheme. That has applied to microbusiness contracts since 1 December 2022 and to small business contracts since 19 December 2024.

The two schemes Ofgem names are the Energy Ombudsman and the Utilities Intermediaries Association (UIA). Citizens Advice also lists the Dispute Resolution Ombudsman as a third route. See what a QDSS is for more.

2. General consumer law

Brokers must follow the Business Protection from Misleading Marketing Regulations. Among other things, they cannot run misleading adverts, and on a sales call they must say who they are and why they are calling. Ofgem can ask a court for an injunction over breaches and can pass cases to Trading Standards or the Competition and Markets Authority where conduct may be criminal.

3. Voluntary codes and principles

Ofgem has published a set of voluntary good-practice principles for brokers, covering areas such as honesty and transparency. Industry bodies also run their own codes, including the Utilities Intermediaries Association code and the RECC TPI Code. These are not law, and a broker that ignores them does not face an Ofgem fine.

What is planned: direct regulation

The direction of travel is clear, but the timetable is not:

• October 2025: in a written statement to Parliament on 23 October, the government announced it intends to appoint Ofgem as the regulator for energy intermediaries "when parliamentary time allows". No date was given.
• June 2026: Ofgem opened a TPI market review with a call for input, which closed on 16 July 2026. It refers to a planned Energy Independence Bill, named in the King's Speech of 13 May 2026, that would set out Ofgem's powers. A government consultation response in June 2026 said the Bill had not yet been introduced, and we found no sign that it has become law, so the new regime is not in force.
• July 2026: Ofgem said it is "preparing to regulate" but has no formal powers yet. It expects the powers to include making rules, monitoring the market and requiring brokers to register. It plans to finish its review in 2026 and consult on initial proposals in 2027.

Until the law changes, treat any claim that a broker is "Ofgem approved" or "Ofgem regulated" with suspicion. Ofgem has no such approval scheme.

How to check a broker before you sign

Because there is no register to look up, you have to do the checking. Ask these questions, and get the answers in writing:

1. Which dispute scheme are you a member of? Then check it on that scheme's own website, or ask the supplier to confirm.
2. Which suppliers will you approach, and how many offers will you show me?
3. How are you paid: a fee from me, or commission built into my rates? What is the total in pounds over the whole term?
4. What will you do for me after the contract starts?
5. Will you give me the Principal Terms before I commit?

Our guide to checking a broker is trustworthy goes through the red flags, and signing a letter of authority explains what you are handing over.

Worked example: why the commission disclosure matters

Suppose a broker's commission adds an illustrative 1.0p per kWh to your unit rate (this is an example, not a typical figure). You estimate 30,000 kWh a year and sign for three years.

• Per year: 30,000 kWh x £0.01 = £300
• Over three years: £300 x 3 = £900, which the Principal Terms should show as the total broker cost

Commission is calculated on estimated use, so if you actually use 45,000 kWh a year the cost is 45,000 x £0.01 = £450 a year, or £1,350 over three years. A wrongly estimated usage figure is one of the most common ways a broker's fee ends up bigger than you expected.

What protection you have if things go wrong

If a regulated-style route is not available, the dispute schemes are your main safety net. If your broker is a member of the Energy Ombudsman scheme, the Ombudsman can look at complaints about mis-selling and account management, and can tell the broker to put right financial loss. If the broker is not in any scheme and sold to you through a supplier that should not have used them, complain to the supplier as well. Ofgem has also warned that it has no legal power to make brokers repay commission, and that scammers have exploited that by claiming otherwise.

Our guides on business energy broker mis-selling and complaining about a broker to the Ombudsman cover the steps in detail.

Next steps

• Read your current contract's Principal Terms and find any broker cost.
• If you are choosing a broker now, work through the five questions above and read how to choose a business energy broker.
• Compare your options: broker, direct or comparison site.
• Remember there is no cooling-off period, so do not agree anything verbally until you are sure.

Biz Energy is independent, takes no commission and is not a broker.