OPINION: May’s new government must regulate the energy broker market to protect shops

As the new Government takes shape under the leadership of Prime Minister Theresa May, we are beginning to learn what priorities each department will have going forward.

One of the biggest shake-ups that has happened within Government is the restructure of the Department for Business.

It includes the now defunct Department for Energy and Climate Change in what is to be known as the Department for Business, Energy and Industrial Strategy.

We know from our research and from talking to retailers that energy costs and standards of conduct remain a significant concern in our sector, so we need to ensure that our voice is heard within this new department.

There are still significant issues with energy contracts for retailers, especially when it comes to the activity of third-party intermediaries (energy brokers)

Over the past two years, the Competition and Markets Authority has been investigating the energy market to see if it is operating fairly.

The conclusions were broad and included some positive recommendations like calling for an end to rollover contracts, but the side effect of the investigation was that Ofgem, the day-to-day Government regulator for gas and electricity markets in the UK, essentially put its efforts to clean up the small business energy market on hold while the investigation was going on.

There are still significant issues with energy contracts for retailers, especially when it comes to the activity of third-party intermediaries (energy brokers).

Many of these companies are unscrupulous, pretending to be suppliers or even from Government and promising retailers a better deal, all while pocketing commission in secret.

We are calling for the energy broker market to be regulated by a robust code of practice, and for Ofgem and the new business and energy department to work together to take action as soon as possible to make this happen.