The Role of TPIs in the Future of Energy Solutions

POWWR
5 min read
20 February, 2025
The Role of TPIs in the Future of Energy Solutions
8:37

As the world moves toward a net zero future, the traditional ways of buying, selling, and managing energy solutions are transforming rapidly. Energy suppliers are having to balance a growing demand for sustainable solutions, increasing regulatory pressures, and the need for more efficient pricing strategies, all while trying to maintain their bottom line and grow revenue. 

For Third-Party Intermediaries (TPIs)—brokers and consultants who help businesses procure energy—this shift presents both challenges and opportunities. While renewable energy adoption continues to reshape the market, the complexity of energy procurement is increasing. Businesses are looking for more than just cost savings; they want transparency, sustainability, and a seamless buying experience.

At the same time, technology is changing the way TPIs operate. Artificial intelligence, automation, and real-time pricing tools are making energy procurement more efficient than ever. Those who embrace these advancements will gain a competitive edge, while those who cling to outdated processes will be left behind. 

It’s clear that the future of TPIs is not just about selling energy—it’s about delivering smart, data-driven solutions that create long-term value for customers.

The Growing Complexity of Energy Procurement

Energy procurement is no longer just about securing the lowest price. With the shift to renewables and the push for net zero, businesses are becoming more conscious of where their energy comes from and how it impacts their carbon footprint. This shift is adding new layers of complexity to the buying process.

For large industrial and commercial (I&C) customers, procurement has always been intricate, but now small and medium-sized enterprises (SMEs) are also seeking tailored solutions. They want to understand the environmental impact of their energy choices, explore options for carbon reduction, and ensure compliance with sustainability regulations.

TPIs must now juggle multiple factors beyond energy pricing:

  • Educating customers on renewable energy options and net zero initiatives
  • Navigating volatile energy markets with fluctuating supply and demand
  • Managing complex contract structures, including green tariffs and carbon offset plans
  • Keeping up with shifting regulations that affect both suppliers and brokers

This increasing complexity demands a new approach—one that relies on advanced data analytics, automation, and real-time market intelligence. Without these tools, TPIs risk falling behind, unable to provide the speed and accuracy that businesses now expect.

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AI and Automation are the Game Changers TPIs Need

Few industries are more time-bound than the energy sector and AI is reshaping how TPIs operate in this way. From optimizing energy pricing to automating procurement workflows, AI-powered tools are removing inefficiencies and helping brokers provide more value to their clients.

AI-Driven Pricing and Procurement

One of the biggest advantages AI brings to TPIs is dynamic pricing. Traditional energy procurement relies on static pricing models that often fail to account for real-time fluctuations in supply and demand. AI-driven platforms can analyze market trends instantly, allowing TPIs to offer pricing that is both competitive and accurate.

For example, AI can forecast energy consumption patterns based on historical data, weather conditions, and economic factors. By doing so, TPIs can help their clients make informed purchasing decisions and avoid unnecessary costs. This level of precision also supports better hedging strategies, reducing the risks associated with price volatility.

Reducing Errors and Improving Efficiency

Beyond pricing, automation is transforming back-end processes for TPIs. Tasks that once required hours of manual work—such as tendering, contract comparisons, and compliance reporting—can now be completed in seconds.

Consider the process of generating a contract proposal. In a manual system, a broker might have to rekey data multiple times, increasing the risk of errors. With automation, a single platform can pull data from multiple sources, generate a proposal, and present an optimized contract without human intervention. This speeds up the sales cycle, improves accuracy, and allows brokers to focus on strategic advising rather than administrative tasks.

The same principle applies to customer interactions. AI-powered chatbots and automated email workflows can handle routine inquiries, freeing up brokers to spend more time on high-value conversations. By removing bottlenecks in the sales and procurement process, TPIs can enhance both efficiency and customer satisfaction.

The Importance of Regulation and Compliance

As the energy market evolves, so does the regulatory landscape. Governments and industry bodies are tightening oversight to ensure transparency, fair pricing, and consumer protection. For TPIs, this means compliance is no longer optional—it’s a critical part of doing business.

In the UK, the Department for Energy Security and Net Zero (DESNZ) has proposed new regulations aimed at increasing accountability for TPIs. These measures seek to prevent misleading sales practices, ensure accurate pricing disclosures, and protect businesses from unfair contracts.

While regulations can seem like a burden, they also present an opportunity. TPIs that proactively integrate compliance measures into their operations can build trust with both suppliers and customers. This includes:

  • Implementing cybersecurity protocols to protect customer data
  • Using AI to track and report on compliance requirements in real time
  • Aligning with accredited software vendors to ensure regulatory standards are met

By staying ahead of regulatory changes, TPIs can differentiate themselves as reliable, ethical partners in energy procurement.

Shifting the Focus from Price to Value

Historically, energy brokers have competed primarily on price. But, as market conditions shift, that approach is becoming less sustainable. Customers are looking for more than just savings—they want insights, transparency, and strategic guidance.

This is where TPIs have a chance to redefine their value proposition. Instead of being seen as middlemen, they can position themselves as energy advisors who help businesses navigate complex decisions.

A key area of opportunity is sustainability consulting. Many businesses are eager to transition to greener energy solutions but lack the expertise to do so. TPIs can fill this gap by offering:

  • Carbon reduction strategies tailored to each business’s needs
  • Guidance on integrating renewable energy sources like solar and battery storage
  • Data-driven insights into energy efficiency and demand-side management

By shifting the conversation from cost to long-term value, TPIs can build stronger client relationships and create new revenue streams.

What’s Next for Energy TPIs?

The future of TPIs is not about survival—it’s about evolution. Those who embrace AI, automation, and data-driven decision-making will thrive in our changing market.

Looking ahead, several trends will shape the next phase of energy procurement:

  • AI-driven predictive modeling will make energy pricing more precise and transparent
  • Digital procurement platforms will replace manual processes, enabling real-time contract execution
  • Blockchain technology may emerge as a tool for secure, verifiable energy transactions
  • Regulatory frameworks will continue to evolve, pushing for greater accountability in the industry

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Embracing Innovation for Long-Term Success

The energy industry is undergoing a transformation, and TPIs are at the center of it. With growing complexity, increasing regulation, and evolving customer expectations, the role of TPIs is shifting from price-focused brokers to strategic energy advisors.

By leveraging AI, automation, and compliance-driven solutions, TPIs can enhance efficiency, improve pricing accuracy, and provide more value to their clients. The key to long-term success lies in embracing these advancements and redefining how energy procurement is managed.

For TPIs and energy suppliers looking to stay ahead, the next step is clear. Discover how automation can streamline your operations and improve energy pricing strategies by booking a Sales360 demo today.

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