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Regulating Third-Party Intermediaries in the Retail Energy Market

DESNZ·consultation·low·20 Sept 2024·source document

This consultation is open for responses

Respond to this consultation

Summary

DESNZ proposes establishing a regulatory framework for Third-Party Intermediaries (TPIs) — price comparison websites, energy brokers, and switching services — in the retail energy market. The consultation closes with no specified date and seeks views on regulatory options including mandatory licensing, voluntary codes, or hybrid approaches. This targets consumer protection rather than market structure reform.

Why it matters

Redistributive regulation that treats symptoms of complex retail markets rather than addressing underlying causes. Creates compliance costs for intermediaries without changing fundamental market incentives that drive switching complexity.

Key facts

  • Covers price comparison sites, energy brokers, and switching services
  • Options include mandatory licensing, voluntary codes, or hybrid approaches
  • No specified consultation closing date

Areas affected

retail marketsuppliers
Memo

This consultation invites feedback on a proposal to establish a regulatory framework for Third-Party Intermediaries (TPIs) within the energy retail market and solicits stakeholders’ preferences among the outlined options. This consultation aims to gather input, especially from stakeholders directly affected by potential changes, and to ensure that the chosen regulatory approach fosters consumer protection and trust, encourages competition, and supports innovative practices.