Regulator Ofgem and Energy Secretary Ed Miliband has warned energy firms pricing must be “fair, transparent and fully justifiable”as the Middle East crisis pushes up global energy prices
The Government also announced plans to use the Energy Independence Bill to regulate energy brokers(Image: © 2026 PA Media, All Rights Reserved)
Energy companies have been put on notice not to exploit businesses as the Middle East crisis drives prices upwards.
Regulator Ofgem and Energy Secretary Ed Miliband have written to business suppliers demanding “maximum flexibility” in contracts for small firms. Mr Miliband insisted pricing must be “fair, transparent and fully justifiable”.
The letter to business suppliers from Mr Miliband and Ofgem’s interim CEO Tim Jarvis urges a “fair and supportive approach”, with transparent contracts. The Government also announced plans to use the Energy Independence Bill to regulate energy brokers and price comparison websites.
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The effective blockade of the Strait of Hormuz, a crucial shipping route for oil and gas, alongside Iranian attacks on Gulf infrastructure have sent global prices soaring.
The benchmark Brent crude stood at 108.21 dollars per barrel at the close of London trading on Wednesday, significantly higher than the 73.08 dollars recorded on February 27, before the US-Israeli strikes on Iran which sparked the conflict.
Mr Miliband said the Government is “fighting people’s corner during this war” in the Middle East, with households protected by the energy price cap and action against “price gouging in the fuel market”.
He added: “Today we are also stepping up to help small businesses get a fair energy deal. I have written to business energy suppliers, setting the very clear expectation that small business energy customers must be treated fairly, including by the brokers, who many small businesses rely on to negotiate their energy contracts.
“Following the conflict in the Middle East, pricing needs to be fair, transparent and fully justifiable, reflecting genuine market conditions.
“To ensure we do not see unfair practices continuing, in the upcoming Energy Independence Bill we will be bringing in new regulation of third-party intermediaries, such as energy brokers and price comparison websites, as a further measure to protect small businesses from harmful practices like mis-selling and untransparent pricing.
“Ofgem will regulate the market, holding the powers to make rules, monitor the market, carry out investigations, and take enforcement action where the rules aren’t complied with.”
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