What is a Qualifying Dispute Settlement Scheme for brokers?

A Qualifying Dispute Settlement Scheme (QDSS) is an independent complaints scheme that brokers must join if suppliers are to deal with them for micro and small business contracts. If your broker mishandles your contract, the scheme can investigate once you have complained to the broker.

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Energy brokers are not licensed by Ofgem, so there is no regulator you can complain to about them. The QDSS requirement fills part of that gap by giving you an independent route when a broker lets you down.

What the rule says

Suppliers may only work with brokers who are signed up to a qualifying alternative dispute resolution scheme. This has applied to microbusiness contracts since 1 December 2022, and to small business contracts since 19 December 2024. Ofgem has said it does not approve the schemes; they must meet Ofgem's criteria.

Which schemes exist

Ofgem's notices name the Energy Ombudsman and the Utilities Intermediaries Association (UIA) as recognised schemes. Citizens Advice also lists the Dispute Resolution Ombudsman as an option for complaints. Ask your broker or your supplier which one applies to you.

How to use a scheme

  1. Complain to the broker first, in writing, using their complaints process.
  2. Wait for their reply. For the Energy Ombudsman and the Dispute Resolution Ombudsman you can go on after 8 weeks, or immediately with a deadlock letter, and must do so within a year of that letter. The UIA allows a complaint after 15 working days or if you are unhappy with the reply.
  3. Send the scheme your evidence: quotes, emails, contract, bills.

See what to do if a broker mis-sold your contract for the full process, and complaining to the Ombudsman.

What a scheme cannot do

  • It is not a regulator and does not license or fine brokers.
  • It cannot help if the broker is not a member.
  • It cannot guarantee a particular outcome; it looks at the facts of your case.

Example

A salon owner is told a contract has "no fees" but the Principal Terms show £1,100 of broker costs over 24 months. She emails the broker on 4 February, gets no reply, and on 1 April (after eight weeks) lodges a complaint with the broker's scheme with her emails and the Principal Terms attached.

Future regulation

Ofgem said in July 2026 it is preparing to regulate brokers but has no formal powers yet; initial proposals are expected in 2027. Until then, a QDSS is the main safety net. Read more in are energy brokers regulated?

Questions people ask

Is the Ombudsman the same as a QDSS?

The Energy Ombudsman is one of the schemes, and it also handles supplier complaints. A broker's scheme may be a different body, so check.

Does it cost me anything?

The schemes are funded by the brokers that join them, and using the Energy Ombudsman is free for customers. Check with any other scheme before you apply.

Do big businesses get it?

The requirement covers micro and small business contracts; check your size in what a microbusiness is.

Next steps

Before you sign with anyone, ask "Which scheme are you in?" and check that scheme's member list. The QDSS glossary entry has a short definition.

Sources

  1. Ofgem: Third party intermediaries - what your microbusiness needs to know
  2. Ofgem: Notice of small business licence conditions taking effect 19 December 2024
  3. Citizens Advice: Problems with your business energy supplier or broker
  4. Ofgem: Third party intermediaries - supporting better outcomes for consumers

General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.