Regulatory Bulletin: Regulation, compliance & market conduct

Latest developments

In June 2026, Ofgem launched a market review of the TPI sector, alongside a call for input inviting views from suppliers, TPIs and customers on how the market operates and where risks may exist. This review is intended to build a detailed understanding of the market, including its structure, the range of services provided and areas where customer harm may still occur. This includes a focus on commission transparency, sales practices and how outcomes vary across different types of customers.

Once the regulatory regime is in place, Ofgem will be able to introduce a range of measures, including:

• a requirement for TPIs to be formally authorised

• new conduct obligations and standards

• enforcement powers, including the ability to impose sanctions or fines

The costs of the regulatory regime are expected to be recovered from TPIs through ongoing fees.

What this means for TPIs and customers

• Following implementation, TPIs will be required to complete registration within a defined transition period, expected to be around 12–18 months.

• After this period, unregistered TPIs will no longer be permitted to operate and suppliers will be required to ensure they only work with authorised TPIs.

• For customers, these changes are intended to improve transparency and consistency across the TPI market, particularly in relation to how services are delivered and how commissions are disclosed.

Timing and next steps

The overall direction of policy change is now clear, but the precise timing remains dependent on parliamentary scheduling. This call for input¹ is open until mid-July 2026 and will help shape the future design of the regulatory framework. Until legislation is passed and Ofgem publishes a final implementation timetable, it is expected that the market will continue to plan on the basis of a likely 2026–2027 transition period. Shell Energy will continue to monitor developments and provide updates via this newsletter and through direct engagement with our TPI partners.

The Government’s consultation² on the post-2025 non-domestic smart meter framework has now closed, and we await the formal outcome. Under the proposals, new supplier licence obligations will be introduced to accelerate the rollout of smart and advanced meters across the non-domestic market. Suppliers would no longer be permitted to enter into new fixed-term contracts for a customer’s designated premises unless that premises either has, or the customer agrees to install, a smart or advanced meter. This requirement applies at an individual site level, rather than across a customer’s full portfolio.

What is a “designated premises”?

Under the electricity supply licence, designated premises are non-domestic sites within profile classes 1 to 4. This means the obligation is targeted at smaller non-domestic supply points, rather than larger half-hourly settled sites.

Benefits of smart and advanced meters

Smart and advanced meters provide clearer and more accurate consumption data, supporting:

• more accurate billing and fewer estimated reads

• improved visibility of energy usage

• access to a wider range of tariffs and energy management tools

These capabilities help businesses better understand and manage their energy consumption over time.

Consumer protections

Alongside these obligations, the government intends to introduce a legally binding Consumer Protection Code to support customers through the transition. This will set expectations for:

• fair treatment during the installation process

• clear communication of customer rights and obligations

• protection where installation is delayed for reasons outside the customer’s control

• transparent contingency arrangements

The proposals recognise that some premises, such as multi-occupancy buildings or sites with restricted access, may face more complex installation challenges. The Consumer Protection Code is intended to ensure these customers are not disadvantaged. Once finalised, suppliers will be required to communicate these changes clearly and proactively with affected customers ahead of the 2027 implementation date.

What this means for customers

While the final framework is still to be confirmed, smart and advanced metering will increasingly become a requirement for fixed-term contracting at certain non-domestic sites.

Customers may therefore wish to begin planning for upgrades ahead of time, particularly for premises where installation may be more complex.

How Shell Energy can support

At Shell Energy, we encourage early engagement with customers and TPIs to plan smart or advanced meter upgrades well ahead of the 2027 requirement. We will continue to provide updates as the policy is finalised. If you would like to discuss your metering arrangements, please contact our team.

^{1 Third-party intermediaries (TPIs) market review | Ofgem}

^{2 https://www.gov.uk/government/consultations/non-domestic-smart-meter-rollout-post-2025}