Under the Business Protection from Misleading Marketing Regulations (BPMMR), the energy regulator has the powers to “clamp down” on brokers or other organisations that are selling energy services or products to businesses in a misleading way.
If a broker is found to be misselling energy products or services, Ofgem is able to apply for a court injunction, forcing the broker or organisation to comply with marketing legislation.
The new powers comes as a research commissioned by Ofgem found that 32 per cent of micro-businesses had a negative view of energy brokers, while a third of all businesses (31 per cent) did not consider that brokers had been upfront about the cost of their services.
A total of 21 per cent of micro-businesses also did not think that brokers provided “accurate information on the services they offer”.
Philip Cullum, consumer partner at Ofgem, said: “It’s crucial for our economy that Britain’s small businesses get a fair deal in the energy market.
“Getting help from a broker can assist in keeping bills down, but business consumers need to feel confident that they know – and get – what they’re paying their broker for.”