What is a Third Party Intermediary or TPI?

This is a common question we get, what is a Third Party Intermediary and how do they help me?  

The long and short of it is, a Third Party intermediary or TPI is an organisation or individual that can provide you with advise – in our case energy - in order to help you manage your energy requirements.

One of the most popular services that a TPI offers is energy procurement, using their markets knowledge and industry connections to achieve better rates on the wholesale cost of energy.

Do TPI’s charge for their service?

Yes. A TPI will always charge for their service, this could either be a flat fee, a price per trade or an indirect charge which is added to your bill.

If a TPI claims that their service is free, then it is almost always an indirect charge and you should look to gain clarity on this fee before accepting terms.  

Are all Third Party Intermediaries the same?

No. Some TPIs have select partners that they work with and therefore will not approach all suppliers, while others are completely independent and will consider the whole market in order to find the best possible rates.

Similarly, their pricing structure, trading knowledge, industry experience and capacity ability will all differ between TPIs.

It’s also important to note that not all offers are presented in the same way. For example, if you are using multiple TPIs then some may present you with the full costs, while others exclude their fee or produce a pass-through contract to make the unit rate look significantly lower.

Never accept a contract unless you fully understand the terms and the pricing breakdown.

Is there a set duration for contracts set up by TPIs?

No, although most contracts will be set up for a fixed term (typically 1, 2, 3 or 5 years) but this will change between TPIs, suppliers and your requirements. Some TPIs will be able to offer better rates for longer fixed terms, but you should always be clear on how long you want to be locked in.

Similarly, there may be termination fees with the TPI and the supplier if you choose to end the contract before the fixed term is up.  

Is amber energy a TPI?

We are a complete energy management consultancy, which includes acting as a fully independent TPI – helping to get you the best deals with suppliers who exactly fit your needs. We are always transparent with our costs, showing you exactly how much you’ll be spending on your energy and how much we’ll be charging.



Joe Hickman