Inspired PLC responds to consultation on regulating Third-Party Intermediaries in the retail energy market

The Department for Energy Security and Net Zero recently sought views within the energy sector on the regulation of Third-Party Intermediaries (TPIs).

The Government’s preferred option is to introduce a general authorisation scheme to the previously unregulated TPI landscape.

Our stance throughout our response to this consultation is clear; a one-size-fits-all regulatory scheme which does not consider the diversity of client requirements will either be so complex as to be unenforceable, or too generic to be beneficial.

Given the preference for a general authorisation scheme, it is essential regulations must be founded in the requirements of different consumer segments, balanced with supplier obligations and acknowledge the role of contract law to be effective.

David Cockshott 
Chief Commercial Officer, Inspired PLC

In our response to this consultation, Inspired outlines how the TPI market can be segmented into three distinct parts: Domestic, small customers and large non-domestic customers.

The energy and service needs of customers in each category are diverse, and regulation needs to vary based on the informed choices a consumer makes to meet their needs.

David continued: “TPIs have always served as a valuable conduit between suppliers and clients and have been fundamental to the successful evolution of the competitive retail energy market.

“Inspired continues to strive to raise standards across the energy consultancy market space and welcomes the opportunity to contribute towards the crucial dialogue around regulating the UK TPI landscape.

“We look forward to more details being released in due course, and further opportunities to contribute towards shaping and forming an effective and appropriate regulatory regimen.”

Inspired PLC’s full response, along with our Segmentation Matrix, can be viewed below.