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Plan to bolster protection for households and businesses from energy firms

todayOctober 23, 2025 1

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Plans to bolster protections for households and businesses against energy firms have been announced by the government. The reforms aim to strengthen the industry ombudsman and improve dispute resolution for consumers. They also target third‑party intermediaries such as energy brokers and price comparison sites, while offering safeguards for firms installing smart meters. The Department for Energy Security and Net Zero (DESNZ) said the measures could unlock savings for energy users and improve market discipline. Under the proposals, the waiting period to escalate complaints to the ombudsman would be cut from eight weeks to four, and suppliers would be required to pay compensation if they fail to implement rulings promptly. The time the ombudsman takes to decide cases would fall from about six weeks to four. DESNZ noted that roughly one in ten ombudsman decisions are implemented late or not enforced.

New plans would stamp out exploitation by rogue energy brokers and other third‑party intermediaries. A lack of regulation has allowed predatory sales tactics that push customers into overpriced contracts in return for higher commissions. The reforms would standardise contracts when businesses and public sector bodies install smart meters and aim to deliver up to nearly £200 million in energy savings.

Energy Secretary Ed Miliband said the reforms would address long-standing failings in parts of the energy market, making it faster and easier for families and small businesses to claim money back when mistakes are made. They would also curb the practice of high-fee brokers handing out contracts. Beth Martin, director for consumer protection and competition at Ofgem, said rogue brokers can cause significant stress and financial strain when customers are taken advantage of, and that extending protections will help. Tina McKenzie, policy chairwoman at the Federation of Small Businesses, argued that tighter regulation of energy brokers is needed so small firms can obtain clear information, face less pressure-selling, and have a wider choice of tariffs.

This article was written with AI assistance and reviewed by a human editor before publication.

Written by: TKONews

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