The Energy Managers Association is to launch a Code of Practice for the sale of energy by Third Party Intermediaries (TPIs) and Energy Brokers. The EMA members represent over £6 billion of the UK energy spend, and have repeatedly raised concerns about this issue.
The EMA Code of Practice, based on the Ofgem draft code of practice, will be launched due to the delay in the implementation of Ofgem’s code. The Competition Market Authority (CMA) preliminary report raised the issue of a lack of transparency in the area of energy procurement, especially for SMEs. The EMA believes that this Code and the way it will be enacted by an impartial demand side organisation should meet the envisaged recommendations in the final CMA report.
The EMA Code of Practice for TPIs and Energy Brokers will be launched on 1 March 2016. The Code will require compliant companies to appoint a compliance officer, be audited, have a complaints procedure in place and adhere to a set level of sales staff training. There will be fees for being part of the scheme.The EMA as a not for profit company, limited by guarantee, will have an open book policy matching fees to the cost of operating the scheme. The fees will be set against the number of employees and/or turnover of companies that decide to join the register.
The Code will be voluntary; all companies that sign up to the Code will be on the EMA register and the EMA members will be advised to purchase energy solely from companies that have been audited and are compliant with the EMA Code of Practice for TPIs and Energy Brokers.