Energy: Retail Trade
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of (a) the prevalence of malpractice in the third-party intermediary energy retail market and (b) the potential impact of the policies within the consultation entitled Regulating Third-Party Intermediaries (TPIs) in the retail energy market, published on 20 September 2024, on levels of malpractice.
Answered by Miatta Fahnbulleh
Third-party intermediaries (TPIs) like price comparison websites, energy brokers, and auto-switching services are vital in helping consumers navigate the retail energy market, acting as intermediaries between energy suppliers and customers. However, not all TPIs offer optimal services. While most operate ethically and responsibly, there are exceptions. Several consumer harms have been reported, such as TPIs prioritising their own commercial interests over consumers', opaque contracting practices (including verbal contracts in the non-domestic market), instances of mis-selling, inadequate dispute resolution, and poor customer service.
The Government consultation on regulating TPIs in the retail energy market closed on 15 November. A government response will follow in due course once we have reviewed the feedback received.
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