Business energy deals see TPIs earn 20% more. 2019 has once again been a year of significant change for third-party intermediaries (TPIs) operating in the business market, with revenues available from negotiating business energy contracts growing. Research from Cornwall Insight’s TPIs in the Business and Industrial Energy Supply Markets report found that when negotiating these contracts in 2019, TPIs could target £395mn/year, a significant 20% more than the previous year.

The small and medium enterprise (SME) sector fared better than the industrial and commercial (I&C) sector. The total revenue for TPIs operating in this segment was £225mn, an increase from £155mn in 2018. In contrast, revenues for the I&C have stagnated dipping slightly from £175mn in 2018 to £170mn in 2019.

Business energy deals see TPIs earn 20% more

Molly Lloyd, Analyst at Cornwall Insight, said:

“The growth in revenue for the SME market is partly due to the higher commissions seen in this sector. Suppliers that are competing to attract TPIs to promote their contracts to businesses has pushed typical commissions for new acquisition contracts significantly above inflation. With higher payments of commission being secured by TPIs selling multi-year contracts.

“The larger SME TPIs are now managing contract portfolios of a similar size to small and medium suppliers and therefore have more influence to seek better terms from suppliers including commissions.

“Revenues from SME energy brokerage for TPIs are at the highest levels Cornwall Insight has recorded. TPIs are now serving over 40% of SME energy contracts, up from just 13% recorded in our first 2014 TPI market report.

“The I&C sector has once again seen continued competitive pressure on commissions, reflecting the drive from larger customers to get quotes from multiple TPIs as well as suppliers.

“With SME energy contracts yet to face the diversification challenges seen in the I&C market, it appears that there still is plenty of growth potential for this market.”

Business energy deals see TPIs earn 20% more from

Previous Post
Energy connected homes services set to grow
Next Post
New Balancing Mechanism entrants expected

Related Posts

The electric vehicle industry latest developments

The electric vehicle industry: The UK are working hard to provide more charging points across the country, whilst manufacturers work to improve battery life and mileage range. Nissan have recently launched their new Nissan Leaf with longer range and a one pedal driving system. The new Leaf is said to be able to travel around…
Read More

Riding the wave of change of evolving customer demand

Riding the wave of change: staying ahead of evolving customer demand Article by Monica Mackintosh, managing director at utilities customer engagement specialist Echo Managed Services, creator of multi-utility billing software, Aptumo   In the water sector, change is all around. A combination of evolving technology, legislative changes and shifting consumer demand has created disruption in the…
Read More

Subscribe to our newsletter!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

British Utilities will use the information you provide on this form to be in touch with you and to provide updates and marketing.