Understanding the role of third-party intermediaries

Since Amber was founded in 2009, the third-party intermediary sector hasn’t been regulated, but this finally looks set to change.

After years of concerns about transparency and consumer protection, the UK government and Ofgem are taking meaningful steps toward introducing formal regulation for TPIs.

What is an energy TPI?

A third-party intermediary (TPI) is any entity that acts as a liaison between a business and an energy supplier to facilitate energy contracts. This category includes energy brokers, consultants, and advisers; if someone assists you in purchasing energy, but is not a supplier, they are considered a TPI.

Their role can be extremely beneficial. Many businesses seek the expertise of an energy TPI to find the best energy deals, navigate the market, and manage their contracts. However, the sector has historically operated with minimal oversight, leading to complications.

What are the problems with the current system?

Despite the crucial role energy TPIs play, the sector is currently unregulated. This means that anyone can establish themselves as an energy broker with little more than a business registration and a contact at an energy supplier.

The consequence? A system where hidden fees and ambiguous practices can flourish. In some instances, customers may not even be aware of the additional costs being added to their bills.

To put it plainly, some TPIs can earn thousands of pounds in commissions without ever disclosing this information to the businesses they are meant to support – and this needs to change.

The advice TPIs offer to businesses could be the difference between stability and bankruptcy.

What will TPI regulation look like?

Following growing pressure from consumer groups and industry watchdogs, Ofgem is consulting on potential reforms to regulate TPIs, with a focus on transparency, accountability, and fair treatment of business customers.

Options on the table include requiring all TPIs to be registered, introducing a code of conduct, and mandating disclosure of commission and fees. These reforms will aim to root out bad practices and rebuild confidence in the sector, particularly at a time when energy prices remain volatile and business customers are under financial strain. This will help create a level playing field and ensure that TPIs are working in their clients’ best interests.

What makes Amber different to other TPIs?

In the complex and often opaque world of energy procurement, Amber stands apart from other TPIs. While our services sometimes mirror those of traditional TPIs, we are different because we are actively addressing the regulatory and ethical gaps that persist within our sector.

Current Ofgem regulations do not fully cover areas such as undisclosed trading fees, mandatory trading volumes, or hidden payments from meter operators, all of which can distort the true cost of energy services and mislead businesses. This is why we are launching the Amber Price Transparency Guarantee.

What is the Amber Price Transparency Guarantee?

This industry-first guarantee ensures our customers are never left in the dark.

We are committed to always offering a clear breakdown of all fees, the rejection or full disclosure of any third-party payments, and a strict policy of no hidden costs. Every offer we make reflects the complete and honest cost, so our customers can make confident, well-informed decisions.

More than just a policy, this guarantee reflects our values of fairness, honesty, and customer-first service. We believe the energy market must work in the best interest of those it serves, and until regulation fully catches up, Amber is proud to lead by example and set a new benchmark for integrity and transparency in the sector.

Want to learn more?

If you’re feeling uncertain about the elements included in your energy bills or whether your current TPI is acting in your best interest, you’re not alone. Please get in touch to find out how we can support you.