The government are looking to introduce new regulations to stabilise the energy market. Here, Jack Goodson of Equity Energies explains why this is vital for social care.
A market overdue for change
Originally energy brokers were intended to support customers with the retail energy market. From sourcing competitive rates, simplifying procurement models, and offering independent advice throughout, Third-Party Intermediaries (TPIs) should have made for a fair and balanced buying process.
Most of the time, many TPIs do exactly that and provide valuable support with long-term energy planning. However, a minority of others don’t. Too often, brokers have operated under the radar, charging undisclosed commissions and steering clients towards closed groups of suppliers that offer hidden kickbacks.
As a result, people have ended up trapped in contracts they haven’t full understood, overpaying for energy by thousands each year. With this in mind, the government’s recent proposal for new regulations for TPIs in the retail energy market can’t come soon enough.
Why this matters for social care
The social care sector has long been stuck between two competing forces: increasing demand and limited resource. For energy specifically, of which social care providers are comparatively heavy users compared to many other sectors, that means limited time or capacity to interrogate contract terms, compare suppliers, or manage risk exposure.
That’s where the risks of poor broker practices multiply. Put simply, if you’re unknowingly paying an additional hidden commission of 2p per kWh across multiple sites, that could quickly add up to tens of thousands of pounds of overpayments for energy every year; money that could otherwise fund estate and facilities upgrades, staffing, pr energy efficiency projects.
New TPI regulation should change that dynamic. By enforcing fair pricing, clearer disclosure, and basic accountability, the government is paving the way for care providers to make more confident, informed decisions. And it’s not just about rooting out bad brokers; it’s about creating a system that empowers you to take control.
More than fairness: a route to progress
While protecting customers is a strong enough reason for regulation on its own, there’s a bigger prize here: progress.
We know that energy efficiency, better demand management, and local generation are all critical to achieving the UK’s net zero goals. But these initiatives require investment, both financial and operational. If care providers are haemorrhaging funds through inflated energy contracts or unclear broker arrangements, those kinds of investments become near on impossible.
Regulation won’t magically fund solar panels or LED lighting retrofits. But it can staunch unnecessary losses, return control to care leaders and estate managers, and ensure that any capital spent on energy is delivering measurable value. In that sense, this quickly evolves from being a regulatory intervention to become a catalyst for sustainability.
What good regulation looks like
Of course, for this to work, regulation needs to do more than tick boxes. At minimum, it should include:
1.Mandated transparent fee structures – energy brokers should be legally required to disclose exactly how they’re paid, including any commissions or mark-ups, before a contract is signed. Hidden charges have been one of the biggest issues plaguing the sector, and full fee transparency is the first step to restoring trust and allowing social care providers to make properly informed decisions.
2. Clear disclosure of who the broker is working for – too often, care providers assume their broker is acting in their best interests, only to later discover they were incentivised by a specific supplier. Regulation should require brokers to declare their affiliations and any financial relationships that could influence their recommendations.
3. Minimum service standards – energy buying isn’t one-size-fits-all. Regulation should set clear expectations around the level of service TPIs must provide, ensuring they offer advice that is tailored to the specific operational needs, energy usage patterns, and sustainability goals of the customer. For social care estates, that might include guidance on contract flexibility, risk exposure, and opportunities for energy efficiency practices or on-site generation.
4. A centralised complaints process – right now, care providers with concerns about broker behaviour have limited options for recourse. Regulation should include the creation of an accessible, independent complaints mechanism, so bad practice can be investigated and addressed quickly, and repeat offenders can be held to account.
But it’s not just about new rules. Culture needs to play a part too. The new framework should encourage best practice, reward long-term thinking, and support TPIs who are genuinely committed to helping clients reduce energy consumption, cut carbon, and build their resilience to market volatility and the changing energy landscape of the future. The best brokers already operate this way. Good regulation will raise the bar so the rest must follow.
What you can do now
While the regulatory detail is still being shaped, care providers don’t need to wait to protect themselves. If you’re currently working with an energy broker, or are planning to, I would suggest asking these questions of them. They’re designed to help you understand how they work, what they offer, and to bring trust and transparency to your relationship.
1. How do you get paid? If they can’t clearly explain their fee structure or disclose commission levels, that’s a red flag. The commercials should be totally transparent, and if you don’t understand something, they should be prepared to explain it until you do.
2. Which suppliers do you work with? A broker with a limited panel may not be offering you the full market picture, while a broader set of options offers variety and ensures they’re looking for the best options to suit you.
3. What’s your energy strategy for our organisation? Energy should be about more than just a price per kWh. A good broker will help you think about the long-term too, across procurement models, energy efficiency, and sustainability progress.
4. Can we see examples of similar organisations you’ve supported? A track record in the health and care sector matters. Ask for case studies or references.
5. How will you support us beyond the contract? The way we all buy and use energy is changing. Look for a partner who’s there for the full lifecycle, not just the deal.
A healthier energy market for all
This isn’t about demonising an entire industry. Many TPIs are already operating with integrity, openness, and a customer-first mindset. But without regulation, there’s been no real consequence for those who don’t. That’s what’s about to change, and it’s a shift the social care sector should welcome.
Ultimately, better regulation means better advice, better decisions, and better use of scarce resources. It gives providers the clarity and confidence to act; not just on procurement, but on the bigger challenges ahead: improving estate resilience, reducing emissions, and ultimately maintaining high-quality care.
For a sector that looks after some of the most vulnerable people in society, those outcomes are essential.
This article was written by Jack Goodson, senior business development manager at Equity Energies.
Images via Jack Goodson.
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