Energy consumers minister Miatta Fahnbulleh has announced plans to regulate price comparison websites and energy brokers in efforts to put a stop to their so-called "license to scam".

She highlighted the need for a new framework to regulate third-party intermediaries (TPIs) to eliminate hidden fees "and other unethical tactics". Ofgem's report earlier this year raised alarms about business stakeholders' "mis-selling concerns", such as being "locked into a contract at higher prices than they needed to be for multiple years, which can severely impact business viability".

The energy consumers minister said: “Too many families and businesses, already struggling with the effects of the energy crisis, have fallen victim to poor practices by energy intermediaries. These unregulated third parties and rogue brokers have had license to scam consumers without oversight or facing consequences.

“We will bring these intermediaries under control and put an end to hidden fees and other unethical tactics. A new regulatory framework, coupled with clear rules and standards, will restore trust and protect consumers while helping to build an energy market fit for the future – one where these organisations help people save money through fairer practices and show them the best ways to reduce their carbon footprint.”

Ms Fahnbulleh's department kicked off a consultation on regulating TPIs on Friday, set to conclude in mid-November. The Government's new proposal would make it compulsory for Third Party Intermediaries (TPIs) to be transparent about their fees and clear on the terms of their contracts.

Ofgem's 2024 Non-Domestic Market Review Decision report highlights a significant issue, stating: "With the absence of formal sector regulation of TPIs, there is a protection gap for some energy consumers who engage with the energy market through TPIs".

It added: "In most cases, TPI service fees are paid as part of a consumer’s energy bill from their supplier, with the supplier paying fees to the TPI from the payment they receive from the customer. This structure has led to some customers being unaware that they are paying a separate fee to the TPI and how much.”