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Ofgem has shelved plans to introduce a mandatory code of conduct for energy brokers dealing with small business customers, saying it will wait for the Competition and Markets Authority (CMA) to report its findings on the ongoing energy sector probe.
The code intends to protect non-domestic customers by compelling third-party intermediaries (TPIs) to be clear and honest with businesses about which suppliers they represent and how they charge for their services.
But rather than insist that brokers sign up to the code in order to do business, the regulator has said it will be voluntary until the CMA reports its initial findings this summer.
“We are postponing our consultation on governance for the TPI code and the requirement that suppliers only work with TPIs that are signed up to the code, by a few months,” an Ofgem spokesman said.
“This is so final proposals can benefit from any relevant CMA findings. Because of this, the principles above are voluntary for now,” he added.
Ofgem referred the industry to the CMA last summer over concerns that a lack of competition in the sector is unfairly disadvantaging customers and smaller new market entrants. The CMA will publish initial findings this summer, and its final report by Christmas.
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