David Sheldrake , Global SVP, POWWR
As the world continues to move toward a net zero future, the traditional ways of buying, selling, and managing energy solutions are changing. Energy suppliers today have to balance a growing demand for sustainable solutions, increasing regulatory pressures, and the need for more efficient pricing strategies. All while trying to grow revenue and maintain margins.
For Third-Party Intermediaries (TPIs) 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.
This is coming at a time when technology is changing the way TPIs operate. Artificial intelligence (AI), automation, and real-time pricing tools are all helping make energy procurement more efficient than ever. It is clear that those who embrace these advancements will gain a competitive edge, while those who cling to outdated processes will be left behind.
New layers of complexity
Energy procurement is no longer just about securing the lowest price. With 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.
This increasing complexity demands a new approach. One that relies on advanced data analytics, automation, and real-time market intelligence. Time is of the essence. Without these tools, TPIs risk falling behind, unable to provide the speed and accuracy that businesses now expect.
AI is the silver bullet TPIs need
Few industries are more time-bound than the energy sector. Thankfully AI can be the silver bullet needed. From optimising energy pricing to automating procurement workflows, AI-powered tools are removing inefficiencies and helping brokers provide more value to their clients.
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.
Reducing errors through automation
Similarly, automation can be used to transform 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.
Compliance is critical
The regulatory landscape is also evolving. Governments and industry bodies are tightening oversight to ensure transparency, fair pricing, and consumer protection. For TPIs, this means compliance is now 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. By staying ahead of regulatory changes, TPIs can differentiate themselves as reliable, ethical partners in energy procurement.
Shifting the focus
Historically, energy brokers have mostly competed 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, build stronger client relationships and create new revenue streams.
An evolution
The energy industry is undergoing a transformation, and TPIs are at the centre 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.
The future of TPIs is not about survival, it is about evolution. It is clear that the future of TPIs is not just about selling energy, it is about delivering smart, data-driven solutions that create long-term value for customers. 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.