Energy Ombudsman Report on Second Year of Broker Scheme

Energy Ombudsman has published its annual Broker Report, sharing data and performance from the second year of its Alternative Dispute Resolution (ADR) scheme for Energy Brokers. It shows growth in case volume, and highlights progress in sector engagement and consumer protection.

In the second year of the scheme, Energy Ombudsman had 1,819 brokers registered. A total of 1,568 cases were accepted, however volumes declined in the second half of 2024.

Covering 1 December 2023 – 30 November 2024, key findings from the report include:

• 1,819 brokers registered with the scheme

• 1,568 cases were accepted (+112%)

• 88% of disputes related to sales (+17%)

• 58% of cases were upheld in favour of the consumer

• 77.5% Customer Satisfaction Score (Good)

There was a rise in sales-related disputes against brokers but a decline in categories such as customer service (6%, down from 13%), switching (2%, down from 9%), and charges (4%, down from 7%).

A key challenge highlighted in the report was signposting; the essential step where brokers must inform consumers of their right to escalate unresolved disputes to an ADR provider. Despite a small improvement (up from 5% in year one to 8% in year two), signposting rates are still unacceptably low, raising concerns about consumer awareness of their rights to redress.

Ed Dodman, Chief Ombudsman for Energy Ombudsman, said: "In 2024, after the challenges of the previous year, the energy market has shown encouraging signs of stabilisation. In the second year of our Energy Broker scheme, our efforts have been increasingly successful in resolving disputes and fostering better practices within the sector. The scheme continues to deliver on its core mission, and we’ve seen encouraging progress, with more brokers engaging with us and showing greater compliance. While these developments are promising, one area that needs urgent attention is signposting. While there were some brokers with impeccable signposting, the overall low numbers are very concerning as this is preventing consumers’ access to redress. Despite ongoing challenges, overall, we’re pleased with the scheme’s tangible impact; raising standards and rebuilding trust."

The report also included the results from a survey conducted by Energy Ombudsman. The survey, which gathered responses from over 150 brokers, highlighted key challenges and opportunities for the sector in 2025. While a quarter (25%) identified regulatory change as one of the most significant challenges for their business in the next 12 months, more than half (56%) said that regulation would help their business, viewing it as essential for improving transparency and creating a fairer energy market overall.

Ed Dodman added: “Our survey findings show that energy brokers recognise regulation as a powerful tool for raising standards and building trust in the sector. By addressing bad practices and ensuring greater transparency, regulation can help build consumer confidence and create a fairer, more equitable energy market.”

Providing access to Energy Ombudsman’s service was seen by brokers as a step forward for the sector, as one broker commented: “Being part of the Ombudsman alternative dispute resolution (ADR) scheme is important and a great move forward for clients and the industry as a whole.”

The Energy Broker scheme was introduced in December 2022 and since then has continued to deliver on its core aim: supporting fair outcomes for consumers while driving positive change across the sector.

Read the report here.