Energy consumers in the UK may have been unknowingly paying hidden fees on their energy bills, but new regulations are set to put an end to this practice. The Energy Consumers Minister, Miatta Fahnbulleh, has announced plans to regulate price comparison websites and energy brokers to prevent what she describes as a “license to scam.”
The new framework would oversee third-party intermediaries (TPIs) and crack down on hidden fees and unethical tactics. Ofgem, the energy watchdog, has highlighted concerns about mis-selling practices that have left consumers locked into contracts with higher prices than necessary, impacting both families and businesses. Fahnbulleh stated that these unregulated intermediaries and rogue brokers have been taking advantage of consumers without facing repercussions.
To address this issue, the government is proposing mandatory transparency for TPIs regarding their fees and contract terms. A consultation on regulating TPIs was launched by Fahnbulleh’s department, with the aim of restoring trust and protecting consumers. The goal is to create a fair energy market where organisations help consumers save money and reduce their carbon footprint responsibly.
The absence of formal regulation of TPIs has created a protection gap for consumers, leading to confusion about separate fees being paid to intermediaries. The proposed regulations would require clear information on fees and contract terms to ensure consumers are fully informed. The consultation is set to conclude in mid-November.
These proposed regulations aim to bring accountability to the energy market and prevent consumers from falling victim to hidden fees and unfair practices. By establishing clear rules and standards for third-party intermediaries, the UK government seeks to build a more transparent and consumer-friendly energy market for the future.