Ofgem is asking energy suppliers, brokers, consumer groups and complaint scheme operators how many independent bodies should settle disputes with customers, with responses due by 27 January 2027.
The regulator said on Wednesday that it is seeking views on arrangements for independently resolving complaints between energy consumers and suppliers, known as Alternative Dispute Resolution (ADR).
It is consulting on how it approves and oversees ADR providers and on how many there should be. It is also asking about future arrangements for third-party intermediaries (TPIs) such as energy brokers and price comparison websites.
Ofgem described its aim as ensuring consumers can get “independent, fair and timely resolution” when they cannot settle a complaint with a supplier or intermediary.
The Energy Ombudsman is the only ADR provider in the direct supply sector at present.
Ofgem said it has received an application from a prospective provider for that sector, which is why it is asking whether consumers’ interests are best served by one provider or more than one.
The proposals set out an interim approach for electricity and gas supply while the regulator gathers evidence for longer-term arrangements covering both supply and intermediaries.
Ofgem is also seeking views on how long an approval should last, with periods of five years among the options, and on what transitional arrangements may be needed when a new framework starts. It said it has made no decisions on transition.
In the intermediary sector Ofgem said it is aware of three incumbent providers operating redress schemes. It currently has no powers to appoint or approve redress schemes for that sector.
The consultation looks ahead to planned regulation of intermediaries, which depends on the relevant provisions of the Energy Independence Bill becoming law and being brought into force.
The government has said it intends to appoint Ofgem as regulator of intermediaries in the retail energy sector, giving it powers to set rules, monitor and investigate companies and ensure they are authorised.
That follows a separate review of the intermediary sector, for which Ofgem took evidence until 16 July 2026.
Ofgem currently reviews the Energy Ombudsman every two years. Its latest review, covering 2023 to 2025, found the ombudsman continues to meet the criteria for providing ADR in the gas and electricity market.
Ofgem listed timely, procedurally fair case handling, high-quality decision-making and consumer support and accessibility as key strengths.
It recommended consistent signposting to other organisations for disputes outside the ombudsman’s remit, clearer information on potential financial awards, proactive reminders that consumers can withdraw at any stage and do not need a legal adviser, and greater transparency in the service complaint process.
The review noted that the Alternative Dispute Resolution Regulations 2015, under which Ofgem historically oversaw the ombudsman, were revoked in April 2026. Ofgem now carries out its approval and oversight functions mainly under the Consumers, Estate Agents and Redress Act 2007.
Ofgem invited responses from current and prospective ADR providers, energy suppliers, intermediaries, consumers, consumer representatives, trade associations and other interested parties.
Responses are to be submitted by email by 27 January 2027, and Ofgem said they will help shape the arrangements.