Important Update: Government Regulation – TPI Retail Energy Market

We welcome the government’s progress in formalising Ofgem’s role as the regulator for third-party intermediaries. Establishing a clear and consistent framework will help build greater transparency and trust across the energy procurement market - something that benefits both TPIs and customers alike. 

Navigating Regulatory Changes

As the details and timelines become clearer, our priority will be to ensure our sales partners remain informed and supported throughout the transition. The UK energy market continues to evolve, and we are committed to working collaboratively with our partners to navigate these regulatory changes effectively and responsibly.

By way of summary of the key changes and what they could mean:

1. Regulatory Oversight and Powers

Under the proposed regime, Ofgem would be granted new powers to monitor and investigate TPIs to ensure compliance with a robust regulatory framework, protect consumers, and deter misconduct.

2. Registration and Compliance Requirements

Once the framework is implemented, all TPIs “in scope,” including resellers and aggregators undertaking energy procurement activities as defined by DESNZ, will be required to register with Ofgem and comply with the rules.

3. Cost-Recovery and Incentives

In line with cost recovery norms elsewhere in regulated industries, the proposal sets out that regulated TPIs would pay an annual fee to Ofgem to fund regulatory activity. DESNZ is also exploring “sufficient incentives” for TPIs that comply with the framework.

4. Timeline and Transition Period

The update anticipates that during the first half of 2026, Ofgem will carry out a detailed market survey to support its preparatory work. Thereafter, once Ofgem is legally appointed and the registration process is established, brokers will likely have a 12-18 month window in which to register or cease energy procurement activity.

Our Approach and Commitment 

These changes represent material shifts in the regulatory landscape, and we see them as an opportunity to raise the bar on integrity, transparency, and trust in TPI-led procurement. A well-designed regulatory regime - one that enforces accountability while preserving TPI excellence - will benefit the whole market: brokers, suppliers, and ultimately customers. 

We remain committed to collaborating transparently with you, industry bodies, and regulators through this transition. As more detailed rules, registration procedures, and timelines emerge, we will continue to keep our sales partners regularly updated with clear guidance and practical insight. 

Read the full government update here.