The Role of Third Party Intermediaries in UK Electricity and Gas Retail

Introduction

TPIs are well established in UK I&C energy markets with more than 60% of total volume being placed with suppliers through them and this proportion likely only to increase further in the future. This brief explores both the historical and likely future relationship between suppliers and TPIs and quantifies the extent to which TPIs are involved in different segments of the market.

Scope

• Insight to the role and ever-growing importance of TPIs within the UK energy market
• Quantitative analysis from survey data of the penetration of TPIs into Datamonitor market segments.
• Understanding of the factors that will influence the likely future relationship between TPIs and suppliers

Highlights

TPIs are firmly entrenched in the market: as buyers have little knowledge of the wholesale market; are concerned over price volatility; and underestimate the cost of using the TPI.

Growth in online and aggregation channels makes TPIs increasingly valuable to buyers that are too small to consider flexible products.

The suppliers with the greatest market share, and those growing volume use TPIs to the greatest extent.

Reasons to Purchase

• Highlight the importance of TPIs and set strategy to target this channel
• Determine key TPI market segments
• Understand how the growth in flexible contracting effects relationships between TPIs and suppliers