Third-party intermediaries (TPIs) play a vital role in helping businesses navigate the complexities of the energy market. They provide valuable advice on energy tariffs and services, enabling consumers to make informed decisions. As the market evolves, with factors such as time-of-use pricing, flexibility, and energy export capabilities becoming increasingly significant, the role of TPIs will only grow in importance.
Our voluntary Code of Practice
In October 2023, RECCo launched the TPI Code of Practice (COP) as a voluntary framework designed to promote high standards and provide essential protections for customers. The Code sets out clear principles for TPIs to follow, supporting transparency, fairness, and professionalism in their operations.
Building on this, REC Change Proposal R0137, ‘Introducing Third Party Intermediary (Energy Broker) Assurance and Accreditation,’ was raised in July 2023. If approved, R0137 will make adherence to the REC TPI Code of Practice mandatory for TPIs working with non-domestic suppliers.
Alignment with government proposals
In parallel, the Department for Energy Security and Net Zero (DESNZ) has been consulting on its plans to regulate TPIs across the retail energy market. While DESNZ’s proposals may influence R0137, we have concluded that proceeding with the change proposal remains appropriate. Submitting R0137 to Ofgem for approval allows the introduction of a mandatory scheme well ahead of any government regulation.
DESNZ’s regulatory principles align closely with our TPI Code of Practice, positioning R0137 as a robust foundation for future frameworks. The scheme could be adapted if required, with roles potentially transitioning from RECCo to Ofgem.
Progress and next steps
R0137 has undergone two rounds of industry consultation, which yielded valuable feedback. As a result, an alternative proposal, R0137A, has been developed. This alternate approach introduces a single RECCo-managed accreditation scheme for TPIs, replacing the original multiple-assurance model.
The final change report, including the original R0137 and the alternate R0137A, will be presented to the REC Change Panel on 3rd December 2024. The proposals will be submitted to Ofgem for approval following the panel’s recommendations.
The current timeline targets:
- April 2025: Implementation of the chosen scheme.
- October 2025: Commencement of TPI accreditation.
Ongoing support for voluntary accreditation
While R0137A progresses through the governance process, we will continue to enhance our voluntary TPI accreditation scheme. This interim measure offers greater assurance to non-domestic consumers and suppliers while providing a smoother transition for TPIs as the mandatory framework takes shape.
Thank you to everyone who contributed to the R0137 consultations. Your feedback has been very important in refining the proposed solution and ensuring it meets the industry’s needs.
