There are many energy brokers out there, all claiming to ‘find you the best energy deal’ and ‘will not be beaten on price’. Fact is just like in any other industry there are the good, the bad and the ugly. Some businesses see this as an untrustworthy minefield – who can blame them?
It’s the Cowboy brokers who have darkened the industry and given the sector a bad name. Now regulator Ofgem are asking all energy brokers to sign up to a new code of practice to identify ‘The ugly’ and remove them in the latest attempt to clean up honest brokers reputations.
The proposed new code of practice is calling for brokers and other third party intermediaries (TPI’s) to be transparent with customers on their fees, contracts offered and which suppliers they represent. This in turn will give businesses an informed decision and they can be sure of no hidden agendas from their chosen broker.
The proposal, due to be in place by the end of 2014, will require suppliers to only work with those brokers who are signed up to the code.
Here at Energy Procurement we welcome Ofgems proposal with open arms. Our belief is that businesses employ a broker in good faith and in effect use them as an extension to their procurement team or indeed act AS their procurement team. Trust plays an essential role and without trust there can be no relationship. Unfortunately this work ethic or belief isn’t always demonstrated across the industry, we can only hope that the new proposed code of practice will give businesses confidence in using energy brokers in the future.