24th October 2025, London: Following extensive consultation, the Department for Energy Security and Net Zero (DESNZ) has confirmed that Ofgem will oversee the TPI market, ensuring fairer outcomes and greater transparency for energy customers. While the Financial Conduct Authority (FCA) was considered for the role, the Government ultimately determined that Ofgem’s experience and remit make it best placed to regulate the market.

When parliamentary time allows, the Government intends to bring forward primary legislation to formally appoint Ofgem as the TPI regulator, granting it the powers to set principles, introduce specific rules, and establish a registration regime for TPIs. Once implemented, it will become illegal to operate as a TPI without Ofgem authorisation, following a 12–18 month “sunrise period” to allow firms time to register.

Ofgem will have powers to fine, suspend, or exclude TPIs from the market, as well as take action against senior individuals within firms. The cost of regulation will be recovered from the TPI market, with mechanisms designed to reward cooperation and good compliance practices.

DESNZ expects the TPI regulatory framework to rest on three core pillars:

Principles: high-level expectations for fair and reasonable conduct, providing a safety net against exploitative or harmful behaviour.

Specific Rules: detailed requirements on conduct and operations, determined independently by Ofgem and updated over time.

Registration Requirements: a mandatory authorisation process assessing compliance and the “fit and proper” status of key decision-makers.

Market monitoring will also form a key part of Ofgem’s remit. The regulator will be empowered to collect data, request information, and commission independent ‘skilled person’ reports to better understand market behaviours and risks. Enforcement tools will include redress orders, standardised fines, and exclusion from the market, ensuring that non-compliant conduct is never profitable and that consumers can be compensated without pursuing individual claims.

Next steps

• Ofgem will begin preparations to regulate the TPI market, starting with a detailed market survey in early 2026 to build a clearer picture of market structure and consumer risks.
• The Government will bring forward primary legislation to formally appoint Ofgem as the TPI regulator and grant it the necessary enforcement powers when parliamentary time allows.
• Once appointed, Ofgem will develop and implement principles, specific rules, and a registration framework for TPIs. Following a 12–18 month sunrise period, it will become illegal to operate as a TPI without Ofgem authorisation.
• Engagement with industry bodies, trade associations, and consumer groups will continue throughout this process, with DESNZ and Ofgem providing regular updates as the framework progresses.

Iain Smith, Head of Sales at Brook Green Supply, commented: “We strongly welcome the Government’s decision to regulate the TPI sector. Since our founding in 2015, Brook Green Supply has consistently advocated for a more transparent and accountable market that protects businesses and drives better customer outcomes.

Ofgem now faces a significant but necessary challenge – overseeing an estimated 3,000 TPI businesses – to ensure the market operates with integrity, fairness, and professionalism.”

Brook Green Supply will continue to engage with DESNZ and Ofgem throughout the regulatory development process. For updates on how TPI regulation may affect your business, please contact your account manager or email sales@brookgreensupply.com.