Energy consumers in the UK may soon find relief from hidden fees on their energy bills as new regulations aim to put an end to deceptive practices by energy brokers and comparison websites. The energy consumers minister, Miatta Fahnbulleh, has announced plans to regulate third-party intermediaries (TPIs) to prevent hidden fees and unethical tactics that have been reported in the energy market.
According to a report published by energy watchdog Ofgem earlier this year, concerns have been raised about mis-selling practices in the industry. Examples include businesses being locked into contracts at higher prices than necessary, leading to financial strain on these enterprises. Fahnbulleh highlighted the impact of such practices on families and businesses already struggling with the effects of the energy crisis.
The proposed regulatory framework aims to bring TPIs under control, ensuring transparency in fee structures and contract terms. The government’s consultation on regulating TPIs, launched by Fahnbulleh’s department, is set to conclude in mid-November. The goal is to require TPIs to provide clear information about their fees to consumers, as many are unaware of the extra charges they are paying for these services.
The Energy consumers minister stressed the importance of restoring trust in the energy market and protecting consumers from exploitation by unscrupulous intermediaries. By setting clear standards and rules, the aim is to build a fairer energy market that helps consumers save money and reduce their carbon footprint.
The move towards regulating TPIs comes in response to a growing need for consumer protection in the energy sector. With the absence of formal regulation, some energy consumers engaging with TPIs have been left vulnerable to misleading practices. By closing this protection gap, the government hopes to create a more transparent and accountable energy market for all consumers.
In conclusion, the new rules proposed by the government signal a positive step towards addressing hidden fees and unethical tactics in the energy industry. By holding TPIs accountable and ensuring transparency, consumers can expect a more fair and competitive energy market in the future.