The third party intermediaries (TPI) sector needs regulation but it needs to be “light” and shouldn’t stifle the market.
Graeme Forbes, Head of Markets at Gemserv said it is important to have “sufficient regulation to lose the malpractice but not over-regulation to the point where the market is constrained”.
Ofgem has set out the Confidence Code for energy price comparison websites (PCWs) and the Code of Conduct for TPIs to ensure companies are giving consumers the best deal and working in their interests.
Mr Forbes believes the drafting should “ensure there’s no dubiety over what it means”.
He told ELN: “There are some good elements to it but we would also say it’s only as good as the level of enforcement that goes with that.
“In any walk of life, in any industry, there will always be some who will try and push the envelope or blur the lines. I think it’s important the Confidence Code is robust and clear in how it is both written and interpreted, but it’s also important that there’s a degree of enforcement and support, so the participants realise the Confidence Code has meaning.”
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