Alternative Dispute Resolution (ADR) is a crucial mechanism for resolving disputes between customers and energy brokers.

For brokers in the UK, being a registered member of an ADR scheme is mandatory to remain compliant with supplier agreements and industry regulations.

However, recent feedback from our members has raised questions about the options available, as well as the role Ofgem should play in clarifying and facilitating a level playing field.

The Energy Consultants Association (ECA) believes brokers need clear, reliable, and fair ADR options, and we’re advocating for greater transparency and choice in this area.

Here’s what you need to know:

ADR is a dispute resolution process that provides customers with an independent pathway to address complaints against brokers.

It ensures that issues can be resolved without resorting to lengthy legal battles, offering a fair and efficient solution.

 Yes.

Suppliers are required by their licences to only work with brokers who are members of a Qualifying Dispute Settlement Scheme (QDSS).

This makes ADR membership a non-negotiable part of operating as a broker in the UK energy market.

QDSS stands for Qualifying Dispute Settlement Scheme.

It is a framework outlined by Ofgem, setting the criteria that ADR providers must meet, including:

• Independence from the parties involved.
• The ability to enforce awards.
• Providing essential services like translation when needed.

ADR providers self-certify their compliance with QDSS, allowing brokers to choose any provider that adheres to these standards.

Currently, there are three known ADR providers for energy brokers:

• Energy Ombudsman
• Dispute Resolution Ombudsman (DRO)
• Utilities Intermediaries Association (UIA)

Each provider offers different approaches to ADR, and brokers should evaluate which aligns best with their business needs while meeting the requirements of QDSS.

 No.

• Ofgem does not have the authority to approve or authorise ADR providers. They issue QDSS guidance, and providers self-certify their adherence to these standards.

• Suppliers similarly cannot mandate a specific ADR provider.

Any attempt to enforce such restrictions could raise competition concerns.

No.

As long as the ADR provider complies with QDSS, brokers are free to choose their provider.

The ECA has not encountered any supplier agreements that legally mandate the use of a specific ADR scheme.

Should suppliers attempt to introduce such clauses, the ECA would encourage brokers to reject these agreements and consider alternative supplier partnerships.

If a supplier claims they do not recognise your ADR provider:

1. Review Your TPI Agreement: Unless explicitly stated, suppliers cannot enforce the use of a specific ADR provider.

2. Push Back: Such behaviour could be deemed anti-competitive and contrary to fair market practices.

The ECA encourages members to report any such issues so we can advocate on your behalf.

The lack of clarity from Ofgem creates unnecessary uncertainty for brokers and leaves room for suppliers to apply pressure or exert undue influence.

Despite repeated calls from the ECA and others in the industry, Ofgem has yet to issue a definitive statement confirming that any ADR provider meeting QDSS requirements is valid.

This silence from Ofgem undermines their responsibility to facilitate a fair and transparent energy market.

The ECA will continue to press Ofgem to provide clarity on this matter.

Many brokers have expressed dissatisfaction with the Energy Ombudsman due to inconsistent rulings and perceived shortcomings in their processes.

The Dispute Resolution Ombudsman (DRO) offers a viable alternative that prioritises:

• Legally Trained Handlers: Ensuring decisions are based on established legal principles.
• Professional and Consistent Outcomes: Providing brokers with greater confidence in the process.
• Recognition by Ofgem: Fully compliant with QDSS guidelines.

The ECA recently hosted a webinar introducing DRO, where members shared positive feedback about their experience.

Many brokers have already begun registering with DRO as a preferred ADR provider.

The ECA is committed to advocating for brokers and ensuring a fair, competitive environment.

We urge Ofgem to:

• Clarify that any ADR provider adhering to QDSS is valid.
• Ensure suppliers do not impose restrictive practices that undermine broker autonomy.

This simple clarification would remove ambiguity and support brokers in choosing the ADR provider that best serves their needs.

If you’re a broker or consultant in the energy industry, consider joining the Energy Consultants Association (ECA) to access valuable resources, stay informed, and contribute to the collective voice shaping the future of UK energy brokering.

At The ECA, we stand for transparency and diligence within the energy sector.

Our members benefit from industry intelligence, networking opportunities, and a powerful collective voice advocating for fairness and professionalism.

With flexible monthly payment options, joining the ECA has never been easier.

Visit our membership page or email enquiries@energyconsultantsassociation.co.uk to take the first step towards a stronger, more empowered future in energy consultancy.

For more information about DRO or to discuss ADR options, contact us at enquiries@energyconsultantsassociation.co.uk or reach out to Richard Griffin at rgriffin@disputeresolutionombudsman.org