As the world moves toward net zero and renewable energy adoption gathers pace, the complexity of energy procurement has increased. Businesses are looking for more than just cost savings; they want transparency, sustainability, and a seamless buying experience. Third-Party Intermediaries (TPIs) are having to work hard to balance this demand with increased regulatory pressures plus the need for more efficient pricing strategies that will maintain their bottom line and grow revenue. It is clear that the future for TPIs is one that is not just about selling energy, but delivering smart, data-driven solutions that create long-term value for customers. But how can this be achieved and what role with technology play? I was asked this very question at the recent Energy Live Consultancy Conference (ELCC) in London.
A mixture of challenges
Unfortunately, there is a heady mix of challenges that is making the transition to renewables difficult for TPIs. The first is the inability to access the key industry data they need for to help switch their clients to the best plans. There may be data available. However, it often comes at a cost that is prohibitive. Yet, without it, it is virtually impossible for a TPI to advise their clients on how they can have the “cleanest” contracts. Not having access to this data can significantly increase risk and impact margins through the TPI potentially being underpaid on commissions.
In addition, there are significant manual processes that still exist, specifically in the large industrial and commercial (I&C) sector. Because of this, it can take a lot of time and effort to tender, check lines of credits, and produce contracts.
Whilst procurement has always been intricate for I&C’s, now we also seeing small and medium-sized enterprises (SMEs) seeking tailored solutions too. They want to understand the environmental impact of their energy choices, explore options for carbon reduction, and ensure compliance with sustainability regulations.
What can be done
Thankfully, technology is helping to alleviate many of these challenges. Artificial intelligence (AI), automation, and real-time pricing tools are making energy procurement efficient. 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 analyse market trends instantly, allowing TPIs to offer pricing that is both competitive and accurate.
Beyond pricing, automation can also transform back-end processes. Consider the act of generating a contract proposal. In a manual system, a broker often has 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 optimised contract almost instantly. 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 manage 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 industry’s move towards Market-wide Half Hourly Settlement (MHHS) is helping accelerate this digital transformation. Much more than simply a technology upgrade; it signifies a move towards a more adaptable, responsive, and sustainable energy framework for all. It will enable the industry’s APIs to provide more accurate data than ever before. This will lead to suppliers becoming more innovative in the products they can offer, and the creation of more bespoke tariffs. It is a win, win.
What the future holds
The energy industry is undergoing a transformation, and TPIs are at the centre of it. Historically, TPIs 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.
TPIs have a chance to redefine their value proposition. Instead of being seen as intermediaries, they can position themselves as energy advisors who help businesses navigate complex decisions.
The challenges above can be overcome. The migration to MHHS will ensure more accurate and readily available data that will increase efficiency and support TPIs and their growth. The future for TPIs is not about survival, it is about evolution. Those who embrace AI, automation, and data-driven decision-making will be the ones to thrive in our changing market.
These are exciting times. I think that several trends will shape the next phase of energy procurement. AI-driven predictive modelling will make energy pricing more precise and transparent. Digital procurement platforms will replace manual processes, enabling real-time contract execution. Blockchain technology that could emerge as a tool for secure, verifiable energy transactions. Plus, regulatory frameworks will continue to evolve, pushing for greater accountability in the industry.
