New energy bill rules from Labour mean 'greater protection' for customers

New energy bill rules from Labour mean 'greater protection' for customers
-Credit: (Image: Reach Publishing Services Limited)


Energy customers will see their bills WITHOUT hidden fees thanks to a new rule from the new Labour Party government. Energy comparison websites will be regulated in a bid to end their alleged “licence to scam”, the energy consumers minister has said.

New regulations for third party services in the energy retail market will help consumers to get the best tariffs available, whilst promoting decarbonisation and clean energy . Proposals will enhance consumer protection, tackle hidden fees, foster market competition and innovation, and empower consumers to adopt low-carbon and energy-efficient tariffs.

Miatta Fahnbulleh said a new framework to regulate third-party intermediaries (TPIs) could end hidden fees “and other unethical tactics”. The energy consumers minister said: “Too many families and businesses, already struggling with the effects of the energy crisis, have fallen victim to poor practices by energy intermediaries."

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These new government proposals are a response to unacceptable instances of consumers and businesses being scammed by unregulated rogue brokers and other Third-Party Intermediaries (TPIs) in the energy retail market. Many TPIs provide valuable services to consumers, helping them to shop around for the best deals and secure energy contracts which are best tailored to their needs.

She went on: "These unregulated third parties and rogue brokers have had licence to scam consumers without oversight or facing consequences. We will bring these intermediaries under control and put an end to hidden fees and other unethical tactics. A new regulatory framework, coupled with clear rules and standards, will restore trust and protect consumers while helping to build an energy market fit for the future – one where these organisations help people save money through fairer practices and show them the best ways to reduce their carbon footprint.”

Examples of unethical behaviour have included adding hidden fees in exchange for their services or offering unsuitable contracts for customers’ specific requirements – all in a market where their clients have little, or no, route for redress. Tina McKenzie, Policy Chair, Federation of Small Businesses (FSB), said: "We are very pleased to see that the government is proposing that energy brokers will be compelled to be more transparent about fees and contract terms, and that the complaint and dispute resolution process will be more robust.

"The energy market can be very confusing to navigate for small firms, and many find brokers are helpful to find the best possible deal. However, this is not the case for all third-party intermediaries and there is widespread scepticism among small businesses as to whether they truly act in the small business customer’s best interests. FSB has long called for tougher rules to crack down on questionable practices among a significant minority of third-party intermediaries, to make the energy market work better for small business consumers.

"This will drive up confidence and create a fair and level playing field for small businesses as they get past the energy crisis and look to the future, with the right deal for them."