Energy brokers and third party intermediaries (TPIs) in the industry should be regulated through suppliers.
That’s the view of Richard Nicholls, Director of Brook Green Supply, who told ELN while the brokers the company deals with conduct themselves very well and help get transactions done, there is a need for some regulation.
However, he believes it would be “very difficult” for Ofgem to regulate between 2,000 and 5,000 energy brokers on the market.
Mr Nicholls said: “The regulator needs to be very careful how they do it. Regulating that many TPIs is really going to be very difficult and we suggest it gets done through the suppliers.
“Ultimately what we’re talking about, the majority of the time with brokers, is transparency. So what the supplier can do is provide colour to the customer on any commercial agreement between the supplier and the broker, whether that’s about what the commission is that’s being paid, how that commission is being paid, is it upfront or pro-rata with consumption and those are changes, certainly for us, that would be fairly quick to implement.”
Christian Coles, Director of Brook Green Supply added energy brokers provide a “crucial role”, particularly for organisations that don’t have their own specific energy purchasing teams and they help conusmers with finding the best price.
He believes brokers keep suppliers “honest” and there would be less competition on the market without them.
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