Understanding Third-Party Intermediaries (TPIs)
Most UK businesses buy their gas and electricity through a broker, consultant, or energy intermediary. These are called Third-Party Intermediaries, or TPIs. The right TPI can save time, secure better rates, and resolve disputes efficiently. The wrong one can create hidden costs, confusion, or even long-term contract issues.
This guide explains what TPIs do, how they make money, and how your business can make sure you’re working with a transparent, professional partner who acts in your best interests.
What a Third-Party Intermediary (TPI) Actually Is
A Third-Party Intermediary is any person or organisation that sits between a business energy customer and the energy supplier. They may be called a broker, consultant, or energy management firm. Their job is to help you find a contract, negotiate terms, or manage supplier communication.
- Energy Brokers – focus on finding cheaper prices or negotiating renewals.
- Consultants – offer wider advice, including audits, metering, and energy strategy.
- Intermediaries – manage supplier relationships, disputes, and contract lifecycles.
Energy Problems operates as a professional intermediary. That means we work for you, not the supplier – ensuring your business gets clarity and control over its energy costs.
How TPIs Are Paid
This is the most important area to understand before agreeing to any energy service. TPIs can be paid in three main ways: commission, management fee, or flat consultancy rate.
- Commission – added to your energy rate (pence per kWh). The supplier pays the TPI directly, but the cost comes from your bill.
- Management Fee – a clear line item or invoice paid by you for ongoing support.
- Consultancy Rate – a fixed fee for specific work, such as an audit or dispute resolution.
Ofgem and the Competition and Markets Authority recommend full commission disclosure. Always ask for written confirmation of how your broker or intermediary is paid before you sign a contract.
Why Transparency Matters
A lack of transparency has led to many of the problems UK businesses face with energy contracts – hidden fees, biased advice, and mis-sold deals. If the TPI earns more when you pay more, their incentives are misaligned with yours.
- Ensure all commissions are disclosed in writing.
- Ask for the total annual value of any broker margin.
- Check that supplier comparisons are independent, not limited to preferred partners.
Energy Problems discloses all compensation arrangements upfront. Our role is to act as your representative – not an agent of the supplier.
How to Evaluate a TPI or Broker
Not all intermediaries operate to the same standard. A professional TPI should offer evidence, references, and transparent documentation. Use this checklist before committing to any agreement.
- They provide a written Letter of Authority (LOA) clearly defining what they can and cannot do.
- They show commission disclosure in writing.
- They supply multiple quotes from different suppliers, not just one.
- They explain all contract terms and renewal timelines clearly.
- They give you a named account manager for future queries.
Any broker who avoids giving written details or pressures you to sign immediately should raise concern. The energy market is complex — not urgent. You should never feel rushed into a decision.
TPIs and the Energy Ombudsman
If a TPI’s actions cause you financial loss, Ofgem and the Energy Ombudsman can investigate. However, resolution depends on documentation. Keep copies of all communications, proposals, and contracts – including email correspondence with your intermediary.
A professional intermediary will never object to scrutiny. Transparency protects both sides and keeps supplier behaviour accountable.
What to Expect from a Professional Energy Intermediary
A professional intermediary like Energy Problems doesn’t simply sell contracts. We provide a full support structure including dispute resolution, metering advice, and supplier management. Our role continues long after your contract is signed.
- Independent review of your current supplier and contract
- Full commission disclosure and billing audit
- Meter and data verification to confirm accuracy
- Support with supplier disputes or complaints
- Advice on switching or renewal without risk
Businesses that work with transparent intermediaries tend to pay less, experience fewer disputes, and gain long-term clarity over their energy position.
Questions to Ask Before You Sign
Here are simple questions that expose whether a broker or intermediary is acting in your interests:
- “Do you earn commission from this supplier?”
- “How much commission will you earn in total over my contract?”
- “Can you show me offers from at least three other suppliers?”
- “Will you support me if there’s a billing dispute later?”
Any hesitation or avoidance on these questions is a warning sign. A trustworthy intermediary will answer clearly and in writing.
How Energy Problems Works Differently
At Energy Problems, we built our service around one principle – trust through clarity. We don’t sell on commission. We act as your representative, ensuring suppliers and brokers remain accountable to you, not the other way around.
- Flat, transparent service structure
- No hidden supplier payments
- Clear documentation of all steps and findings
- Direct access to expert advisors