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Last updated October 2026.
Brokers are not licensed
Energy suppliers hold Ofgem licences. Energy brokers, or third-party intermediaries as the regulator calls them, do not. There is no register, no qualification and no licence to revoke. Anyone can set up as a broker tomorrow. That is the single most important fact about the market and the reason due diligence falls on the customer.
Regulation reaches brokers indirectly, through the suppliers they place business with. Since 2022, supply licence conditions have required suppliers to take responsibility for the conduct of brokers selling to microbusinesses: ensuring commission is disclosed, ensuring the broker is signed up to an alternative dispute resolution scheme, and dealing with complaints about broker conduct. For larger business customers, even that indirect protection does not formally apply.
What the rules currently cover
| Area | Microbusiness customers | Larger business customers |
|---|---|---|
| Commission disclosure | Required, in pounds and pence over the term, before signing | Not required; good practice |
| Dispute resolution | Broker must belong to a qualifying ADR scheme; customer can escalate to it | No requirement; contractual and legal routes |
| Supplier responsibility | Suppliers must only work with compliant brokers and handle complaints about them | No equivalent duty |
| Cooling-off | None for business energy contracts, broker-sold or otherwise | None |
| Marketing and sales conduct | Covered by general consumer and business protection law | General law |
The microbusiness definition matters: fewer than ten employees and turnover or balance sheet under two million euros, or electricity under 100,000 kWh a year, or gas under 293,000 kWh a year. A fifteen-person firm with modest consumption is outside the protections.
Talk it through with us
Send us a recent bill or a quick description of your sites and we will tell you plainly what applies to you and what it would involve. No obligation.
Where it is heading
Ofgem and government have consulted on regulating brokers directly, including a potential licensing or authorisation regime, following years of evidence of poor practice in parts of the market. Clearsight Energy took part in Ofgem’s roundtable on the subject and supports direct regulation. Until it arrives, the practical protections are disclosure, the ADR schemes and the customer’s own checks. The roundtable article covers the discussion; how to check a broker is legitimate covers what to do in the meantime.
Frequently asked questions
Does Ofgem regulate energy brokers directly?
Not directly. Brokers hold no licence. Ofgem regulates them indirectly through supply licence conditions that make suppliers responsible for broker conduct towards microbusinesses.
Do energy brokers need a licence in the UK?
No. There is currently no licence, register or qualification requirement, which is why due diligence matters.
What protections do microbusinesses have when using a broker?
Commission disclosure before signing, the right to escalate disputes to an ADR scheme the broker must belong to, and supplier responsibility for the broker’s conduct.
Can a larger business complain about a broker to Ofgem?
Ofgem does not handle individual complaints about brokers. Larger businesses rely on the contract with the broker and general law.
Is broker regulation going to change?
Ofgem and government have consulted on direct regulation of third-party intermediaries. No regime is yet in force; the timetable should be checked against current announcements.
Is Clearsight Energy a member of an ADR scheme?
Yes. We meet the requirements suppliers impose on brokers for microbusiness customers and apply the same disclosure to every customer.
Need help? Get in touch
Call us on 020 8036 5715, or email us, and we will take it from there.