Energy consultants and brokers are to be regulated with a new Code of Practice, enforced by the energy regulator later this year.
Ofgem is implementing a code of practice for brokers and consultants, also known as third-party intermediaries.
As part of the ongoing Retail Market Review, Ofgem is placing a license obligation on suppliers to only deal with Third-party intermediaries (TPIs) that are accredited to an industry-governed code of practice.
The regulator was granted new powers to deal with TPIs in November 2013 under the Business Protection from Misleading Marketing Regulations 2008 (BPMMRs).
The code of practice will cover areas such as:
- Misselling
- Information provision
- Complaints handling
- Training requirements
The code will be governed by a board made up of energy suppliers, TPIs and consumer groups.
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No rollover ban
Also announced was Ofgem’s decision not to ban rollover contracts in their entirety.
Last year all of the big six changed the way they deal with customers who don’t terminate their contract in time. These largest suppliers will simply require 30 days notice when you want to leave.
Ofgem cited the reason for not banning rollovers:
“Rollover contracts do help smaller suppliers as they give them more certainty about how much energy they need to buy for their customers over a longer period. This helps them compete more effectively against the Big Six suppliers.”
Sources:
New rules for suppliers and brokers to protect businesses from misselling – Ofgem Press Release | Proposals for regulating non-domestic Third Party Intermediaries (TPIs)