Third-party Intermediaries (TPIs) are crucial in helping consumers navigate the market, offering guidance on the best energy tariffs and services. As the market becomes more complex, with factors such as consumption timing, flexibility and the ability to sell energy back into the system increasingly influencing costs, the role of TPIs will become even more significant.
DESNZ have launched a consultation
In September, the Department for Energy Security and Net Zero (DESNZ) published a consultation seeking views on the options for regulating Third-Party Intermediaries in the retail energy market to increase consumer protections, building on their 2021 call for evidence.
We welcome the consultation and will be responding fully in due course.
We will continue to progress with our Code of Practice
We are aware that the proposal to regulate TPIs will call into question what happens to existing codes of practice, and more specifically, our proposal to mandate that non-domestic suppliers use only a TPI that adheres to the TPI Code of Practice currently being progressed as REC Change Proposal R0137.
We believe it is important to raise standards in the non-domestic retail market and to provide confidence to the consumer in the services offered by their chosen intermediary. Having reviewed the options and the fact that the proposals are not yet certain to result in new regulation, we consider it appropriate to proceed with R0137 and submit it to Ofgem for approval. That will give Ofgem the option to introduce a mandatory scheme, potentially years before any new regulations come into effect. Also, DESNZ’s principles closely align with the existing TPI CoP. R0137 could form a strong foundation for any future regulatory framework, albeit with a possible transfer of roles between RECCo and Ofgem.
Next steps for REC Change R0137
R0137 will return to the Change Panel in October and is expected to be issued for consultation, closing on 8th November. In the meantime, we will continue developing the voluntary accreditation and registration system for TPIs. This will give non-domestic consumers and suppliers greater assurance and provide a softer landing for voluntarily accredited TPIs.
Engaging with industry
We have been in discussions with various third-party intermediaries individually and were recently invited to speak to the Energy Consultation Association members. During a well-attended webinar, there was a general agreement on the importance of having effective standards in this market sector and the ability to demonstrate adherence to them. We believe that our proposed accreditation scheme will accomplish this.
We look forward to collaborating with the ECA, other representative groups, suppliers, and other stakeholders to finalise our proposals and implement the accreditation scheme.
