英国制造商组织：2025年能源经纪人：能源市场变革中的中介角色研究报告（英文版）

AUK

TheManufacturers'organisation

Inpartnershipwith

Energy

Brokers:

INTERMEDIARIESINACHANGINGENERGYLANDSCAPE

2

EnergyBrokers:Intermediariesinachangingenergylandscape

Contents

ExecutiveSummary3

Whatmakesupanenergybill?4

RoleofsuppliersandThird-PartyIntermediaries(TPIs)8

NegativepracticeswithintheTPImarket10

CaseStudy:PennineHealthcareLimited11

CaseStudy:TEMCOWire12

Bestpracticeguidance13

Policyenvironment14

Recommendations15

About18

EnergyBrokers:Intermediariesinachangingenergylandscape

3

ExecutiveSummary

Manufacturersfaceanincreasinglychallengingenvironmentfordoingbusiness.Surgingoperationalcostsaredrivenbydirectfactorssuchasmaterialcostsbutever-increasinglyindirectcostssuchasenergy.TheIndustrialStrategyhassetthestagefortheUK

tobecomea“cleanenergysuperpower”,establishingthefoundationsforfinancingarenewables-ledtransformationoftheenergymarket.

Forenergy-intensivebusinesseslikemanufacturers,

pursuingopportunitiestoreduceutilitycostsismission-

critical.However,theenergymarketisanintricateand

instantaneousspacetonavigate–eventsontheother

sideoftheworldcanhaveanimmediateimpactonpricesofelectricityandgashereintheUK.

Therefore,Third-PartyIntermediaries(TPIs),likeenergybrokers,canactasaninvaluableconduitbetween

energysuppliersandtheendconsumer.Actingasan

intermediaryinatechnicalandcomplexfieldlikeenergyisatrustedposition–whichmeansaconsultantshouldprovideitsserviceswithskillandcare.

However,someallegedlybadactorswithinthesectorfallshortofthisstandard.Non-domesticenergyusershave

comeacrossunderhandtechniques,transparencyissues,

mis-selling,disputeresolutionmattersandpoorcustomerservice–exacerbatingissuesaroundhighenergycostsandcreatingfurtheruncertaintywithinthemarket.

On23October2025,theDepartmentforEnergy

SecurityandNetZeroannouncedthegovernment’s

intentiontoappointOfgemastheregulatorforTPIs

intheretailenergymarket.Aturningpointinthe

previouslyunregulatedenergyconsultancylandscape,thisannouncementhighlightstheimpactsofegregious

practicesandeffectualexpertenergypartnershipsalike.

Althoughthepracticalitiesaroundthefutureregulatoryregimenareyettobeoutlined,businessescancontinuetomakeinformedenergydecisions–whichbeginslongbeforesourcingexternalsupport.

EnergyProcurement

Towardstheendof2022,asurgeinenergypricessawenergycostsfastbecomethenumberoneissueforUKmanufacturers.Thisincreasedtheusageofthirdpartyintermediariessuchasenergybrokersasmanufacturerssoughttodeveloptheirprocurementstrategiestobringdowncosts.1

Asenergycostshavebecomeacriticalconcernforbusinesses,manyorganisationsseekassistancefrom

intermediaries.Thisrouteallowsbusinesses,particularlySMEs,whomaylackenergymarketexpertiseorinternal

resource,tosecurethemostopportunemarketcontractsonoffer.Manyintermediariesofferafully-managedservice,wheremultiplesupplieraccess,negotiationsandmarketmanagementallhappenwithoutcustomerinputrequired.

Therefore,theroleofathird-partyintermediaryistoensuresecuringthebestpossibleratesandhelpclientsnavigateacomplexenergymarket,thusfindingwaystooptimisetheirenergyprocurementcontractsaroundtheirusage.

1

Non-domesticResearchReport-2024

EnergyBrokers:Intermediariesinachangingenergylandscape

4

Whatmakesupanenergybill?

Energybillsaremultifaceted,influencedbycomplexindustryinformationand

numerousgovernmentpolicies.AstheUKareanetimporterofenergy,itcanmakeourmarketmorevolatilethanothercountries.

SomeofthekeydriversofUKenergypriceinclude:

–Geopolitics.

–Weather–hasasignificantimpactonourrenewablegenerationbutalsoplaysahugepartindemandee.ggasforheatinginwinter,electricityforcoolinginsummer.

–Supplyanddemand.

–Gasstoragelevels–oursecuritybufferwhensupplyfromcontinentorvialiquefiednaturalgas(LNG)islow.

–Outages–powergenerationassetshavingplannedorunplannedmaintenance.

–Renewablegeneration–likelihoodoreffectivenessofgenerationofcleanelectricityonanygivenday.

–Currencyexchangerates.

■Distributioncharges

■Suppliercharge

Chart1:Commodity&non-commodityelectricitycharges2025

■Wholesalecost■Transmissioncharges

■Environmentallevies■Systemcharges

2%11%

39%

28%

5%

15%

Source:Inspired

Yourbusinessenergybillsaremadeupoftwomainelements:

–Thecommoditycost.Thisisthewholesalecostoftheelectricityandgasyouuse–setbymarketconditionsonthedaytheyarebought.

–Non-commoditycosts,alsoknownasthirdparty

ornon-energycosts.Examplesof

non-commodity

costs

includeTransmissionNetworkUseofSystem(TNUoS)charges,DistributionUseofSystem(DUoS)chargesandClimateChangeLevy(CCL).

Whendiscussingsurgingenergyprices,the

relationshipbetweencommodityandnon-commoditycostsmustbeexamined.

Thecommoditycosthasbeendefinedbythecouplingofgasandelectricityprices,drivenbytheUK’s

marginalpricingsystemwhichsetsmarketrates

accordingtothemostexpensivegeneratortocome

online.Thismarginalpricingsystemensuresthemost

economicalgenerationsetisalwaysused,whichisthestandardapproachinEuropeandmanyothercountries.

EnergyBrokers:Intermediariesinachangingenergylandscape

ThismeansUKelectricitypriceshavereflectedthe

strongriseingaspricessince2021—influencedby

factorssuchasthepandemicandtheUkrainewar.ThishasbeenexacerbatedbytheUKsrelativedependenceongasasopposedtootherenergysourcessuchas

nuclear,coalandrenewables.2

Moreover,theUKplacesmostofitselectricitypolicyleviestaxesdirectlyontoelectricitybills.Thishasincreasednon-commoditycosts,whichcannowmakeuparound60%ofabusinessenergybill.3

Forexample,governmentschemesthatsupportenergy

intensivebusinesseswiththeirenergycostsarefunded

withthesetaxescollectedfromelectricitysuppliersandinturnreflectedasanon-commoditycostinelectricity

billsofotherbusinesses.

Thesecostsaresettoriseshortlyasnewtransmission

investmentandnuclearpowerhitbillswhichcouldseeenergybillsriseby£300,000forlargeenergyusersnextApril.4

MakeUKhaspreviouslyarguedagainsttheregressivenatureofaddedcosts,pushingthegovernmentto

ensurethecostsofpolicyschemesarenotborne

bymanufacturers(e.g.viagasbills).5Instead,thesecostsshouldbepaidforinaprogressivewaywhichalignswithgrowthanddecarbonisationobjectives.

TheGovernmenthasstateditsintentiontoconsulton

aBritishIndustryCompetitivenessScheme(BICS)to

addresstheimpactsofthesepolicycostsanddrive

downcostsformanufacturers.MakeUKhasproposedawayforGovernmenttoimplementthisin2026includingallmanufacturersandbelieveitisanimportantstepin

addressingindustryconcerns.6

Commoditycosts:wholesalecosts

Electricityandnaturalgascanbeboughtandsoldinlargevolumesfromthewholesalemarket.Generatorsandproducerssupplyelectricityorgastothemarketandselltheseforsuppliersorretailerstosupplytoendusers.

However,thereareothermarketparticipantswhoneithergenerateorsellenergytoend-users.Theseparticipants,ofteninvestmentfunds,tradeenergyfortheirfinancialgainandultimatelyhelpwithmarketliquidity.

Ontheflipside,speculativepositionsheldbyinvestmentfundshavebeenincreasinglytiedtoheightenedvolatilityduringperiodsofgeopoliticalrisk,withbuyingsurgingoffthebackofeventsliketheendoftheUkrainetransit

agreementandUSinvolvementagainstIran.

Formanufacturers,thewholesalemarket-andsubsequentlythedeterminedmarketprice-playsalargeroleindefiningwhatthebusinessendsuppayingfortheirenergy.Thewholesalemarketiscomplex,hencewhyend-consumersalmostuniversallydonotengagewithitdirectly.Instead,asupplierorroutetomarketprovider(tradinghouse)isused.

Nevertheless,therearetwomainmechanismsforstakeholderstoengagewithinthesemarkets:standardisedbilateralcontracts-andexchanges.

Historicallyenergyhasbeentradedmorecommonlythroughabrokerwherepricesareagreedbilaterally.Future

exchangeshavebeenusedincreasinglymorerecently,especiallyforintraday/next-daypowertrading,asthese

providemuchgreatertransparency,creditprotectionandliquidity.Futureexchangesarelegallybindingagreementstobuyorsellaspecificquantityofacommodity(suchaselectricity)atapredeterminedpriceonaspecifiedfuturedate.

Wholesalemarketpricesareincrediblyvariable.Seasonaldemand,changingweatherandgenerationcapacity

availabilityallhavearoleindeterminingwholesalemarketpricesetting.Mostcustomerswillbefamiliarwiththis

phenomenonwhenthepriceofdomesticgasincreasesinwinterasheatingdemandwithdomesticpropertiesincreasesinlinewithreducingseasonaltemperatures.

Thispricechangeisanexampleoftheinterplaybetweensupplyanddemandonthewholesalemarket.Inversely,in

summermonths,higherlevelsofsolargenerationandlowheatingdemandcanputdownwardpressureonelectricityprices.

2

TheimpactofhigherenergycostsonUKbusinesses-OfficeforNationalStatistics

3

Breakingdownyourbusinessenergybill-Inspired

4

CornwallInsightanalysis

5

TacklingElectricityPricesForManufacturers|MakeUK

6

lndustrycan’twaitanylongerforafixtoitsenergycrisis.MinistersshouldgetamoveonlNilsPratleylTheGuardian

5

EnergyBrokers:Intermediariesinachangingenergylandscape

6

RetailandWholesalemarkets:Whatisthedifference?

Yourcommoditycosts–thepricesofgasandelectricity–arealsoinfluencedbywhetheryouareaccessingtheenergymarketfromaretailorawholesalesetting.

Attheretailmarket,supplierssellelectricityandgasdirectlytoendconsumers,whileinthewholesalemarketsuppliersandgeneratorssellenergyinbulk.

Duetothispremise,retailpricesareinclusiveofcostsliketransmissioncharges,leviesandsuppliermargins,whilewholesalepricesdonot.

However,energyisoneofthemostvolatilecommoditymarketsintheworldandthisaspectisaddresseddifferentlyinthetwomarketsettings.Intheretailmarket,thesuppliermitigatesagainstunexpectedpricemovementsbyadding,

attimes,considerableriskpremiumstogasandelectricitypricesbeforesellingtotheenduser.Ifthewholesale

pricesweretorisebeyondwhatthesupplierforecasted,theywouldthentakethefinancialhit.Resultingly,theseriskpremiumsincreasesubstantiallyattimesofhighpricevolatility–inlinewiththerisksuppliersareexpectedtotake.

Meanwhileinthewholesalemarket,theenduserfacesboththerisksandtheopportunitiescontinuouslychanginggasandelectricitypricesoffer.

Non-commoditycosts

Thepracticalitiesaroundhownon-commoditycostsimpactyoudependsonyourcontractarrangements,consumptionandlocation.Inprinciplehowever,chargesleviedtosuppliersarereflectedinthenon-commodityelementofyourbill.

GovernmentLevies:

一RenewablesObligation(RO):RenewableObligationCertificates(ROCs)aretradablegreencertificatesissuedtoUKrenewableelectricitygeneratorstosupportthegovernment’sRenewablesObligationscheme.ElectricitysuppliersarerequiredtopresentacertainnumberofROCstodemonstratetowardstheirobligationtosupplyaproportionofelectricityfromrenewablesources.

一ContractsforDifference(CfD):TheCfDschemeisthegovernment’smainsupportmechanismfornewlowcarbonelectricityprojectsinGreatBritain.ContractsforDifferenceare15-yearprivatelawcontractsbetweenrenewable

electricitygeneratorsandtheLowCarbonContractsCompany.

一Feed-inTariff(FiT):Thisschemerequiresparticipatingsupplierstopayhouseholdsandbusinessesforexportingsurplusrenewablepowertheyhavegeneratedbacktothegrid.Althoughthisschemeclosedforapplicationsin

2019,existinginstallationsmaystillreceivepayments.ThecurrentschemepayingforelectricityexportedbacktothegridistheSmartExportGuarantee.

一EIISupportLevy:Thesupportofferedtoenergyintensiveindustries(EIIs)throughtheNetworkCharging

CompensationschemeisfundedbyalevyonalllicensedelectricitysuppliersinGreatBritain,theEIISupportLevy.Inturn,thislevyistransferredtonon-domesticconsumersasanextrachargeontheirelectricitybills.

一GreenGasLevy(GGL):ApplicabletolicensedfossilfuelgassuppliersinGreatBritain,thislevyfundstheGreenGasSupportScheme–whichprovidestariffsupportforbiomethaneproducedviaanaerobicdigestioninjectedintothegasgrid.

一CapacityMarketcharge:ThisisleviedtoelectricitysupplierstofundtheUK’sCapacityMarket.Thelevyhastwomaincomponents:theCapacityMarketSupplierChargeandtheSettlementCostsLevy.

一NuclearRegulatedAssetBase(RAB):Designedtosupportthedesign,construction,commissioningandoperationcostsofnewnuclearprojects,allsuppliersarerequiredtofundtheNuclearRABarrangementsthroughtheSupplierObligationmechanism.Thecostofthismechanismisreflectedinthenon-commodityelementofconsumerbills.

EnergyBrokers:Intermediariesinachangingenergylandscape

7

SystemsCharges:

一TransmissionNetworkUseofSystem(TNUoS):Chargedfromallsuppliersandgenerators,thiscoversinstallationsandmaintenanceinthetransmissionsystem.

一DistributionUseofSystem(DUoS):Businessespaythiscosttotheirsupplier,whichisthenpassedtoDistributionSystemOperatorstowardsmaintenanceoflocalelectricitydistributionnetworks.

一BalancingServicesUseofSystem(BSUoS):ThischargeispaidtotheNationalGridtocoverthecostofmaintainingtheentirenetwork.

Chart2:Non-commoditycost5yearforecast

Cost(£/MWh)

■BalancingServicesUseofSystem■AreasforAssistancewithHighElectricityDistributionCosts■ClimateChangeLevy■FeedinTariff■RenewablesObligation

■ContractsforDifference■CapacityMechanism■DistributionUseofSystem■TransmissionNetworkUseofSystem■EIISupportLevy■NuclearRAB

■DistributionLosses(Energy)■TransmissionLosses(Energy)

140

120

100

80

60

40

20

0

Jan15Jan16Jan17Jan18Jan19Jan20Jan21Jan22Jan23Jan24Jan25Jan26Jan27Jan28Jan29Jan30

Sources:CornwallInsights,Suppliers,NetworkOperators,Distributorsandotherindustrysources

EnergyBrokers:Intermediariesinachangingenergylandscape

Roleofsuppliers

andThird-Party

Intermediaries(TPIs)

Manyconsumersaccesstheenergymarketbyengagingdirectlywitha

licensedenergysupplier.However,theenergymarketisatechnical,complexandinstantaneousspace,especiallyforbusinesseswhichmaylackinternalresourceormarketknowledgetoassesstheiroptions.

Third-PartyIntermediaries(TPIs),suchasenergy

consultants,helptheirclientstonavigatethisspace

empoweringthemtobuyenergywithconfidence.However,makinginformedenergybuyingdecisionsrequires

thoroughlyevaluatingtheclientsrequirementsandappetiteforrisktodeliverbestsuitedprocurementstrategy.

Businessestypicallyhavearangeofenergysuppliersto

choosefrom,allcompetingwitheachotherinasecondaryretailmarketseparatetothewholesaleenergymarket

byofferingvariouscontractsandincentives.7Thiscanbeanintimidatingandhighlytechnicalspace,andusingTPIsisthereforecommon81%ofrespondentstooursurvey

statedtheyuseTPIservices.

ThisdemonstrateshowTPIscanplayanimportantrole

insupportingmanufacturerstomakesenseofanoften

challenginglandscape.TheTPImarkethasthepotential

tosupportconsumerstosecurebespokeandbetter-value

energycontractswhiledemystifyingtheincreasingvarietyofoptionsforconsumersintarifftypesandadditionalservices.

WithoutsupportfromTPIs,manufacturerscouldberequiredtocontactsuppliersdirectlytorequestquotationforsupplyofelectricityandorgas.Duetothecomplexnaturealreadydescribedofwhatmakesupadeliveredbill,manysuppliersquotationswillincludeorexcludedifferentaspects.This

makesitincreasinglycomplexthenfortheenduserto

compareandtrulyunderstandwhattheyarereviewing,

particularlyifresourcesmayalreadybeconstrained.FrompriorMakeUKsurveyscompleted,wealsounderstandthatmanymembersare“goingtomarket”whenitsuitstheir

availabilitywithintheirbusyschedule-ratherthanbecausetheyhavebeentrackingthemarketandbelieve,basedon

81%

OFRESPONDENTSTOOURSURVEYSTATED

THEYUSETPISERVICES

factsandvariousinformationsources,thatnowisthetimetoforwardpurchasetheircontracts.8

Thepricesecuredforthecommodityelementofanend

usersbillisdeterminedbytiminginthemarket.This

equatesto40%ormoreofthetotalcostofenergy.Iftimingofrenewalismoredowntoluckthaninsight,theenduserisatthemercyofthemarket,ratherthanbeingableto

influencethesinglebiggestaspectoftheiroverallbill.

TPIsthatoffercollectiveprocurement,alsoknownasbaskets,providevaluetoindividualbusinessesbyaggregating

theirvolumetobelargeenoughtoallowtheirenergytobe

tradedinamannerthatoffersthemaccesstomorerisk-

managedstrategiesandthewholesalemarket.Thisinturn

increasestheircosttransparencyandhelpsfurtheraligntheirprocurementstrategywiththeirprocurementgoals.

Dealingwithasupplierdirectlyisoftennotasuitable

solutionforamanufacturingsectorcomprisedmostlyof

SMEs:thereisnocapacitytohireadedicatedprocurementteamthereforeincreasingrelianceonTPIs.9

TPIsdochargefortheirservicesregardlessofwhatyoumaybetold.Theyareabusinessandneedtogenerate

revenuefromprovidingservices.SomeTPIsarevery

transparentandwillcommunicateclearlywhattheirfeesarefordeliveringtheirservicespriortoyouengaging

7,8,9

EnergyProcurement:TheCostofComplacency|MakeUK

8

EnergyBrokers:Intermediariesinachangingenergylandscape

9

them.However,otherswhoarelesstransparentmaytell

youthattheytakea“findersfeefromthesupplier”.Thisinfact,isincorrect.Therealityisthatyouarepayingfortheirservicesasavolumetricfeeorcommissionwhichisaddedtothecostofenergyyoupayfor.Thisistypicallyadded

asap/kWhfeebutweareawaresomeTPIswillalsoaddcommissiontothefixedchargesofyourbillsuchasthestandingcharge.

Onekeythingtounderstandisthatnotallfeesarethe

same.Volumetricfeesarebasedontheconsumptionofthe

endusersothebrokeristhennotincentivisedtohelptheenduserreducetheirconsumption,asitcannibalisestheirfees.

Also,whenengagingwithabrokerwhorecoverstheirfeesviatheenergysupplier,somesupplierswillofferpreferentialpaymenttermstobrokersoverothersuppliers.Sothe

brokermayberecommendingasupplierbecauseitmeansthebrokerwillbepaidahighproportionoftheircontracted

Chart3:Ifyouuseabroker,istheirremunerationmethodoutlinedwithinyourcontract?

commissionupfront-ratherthanitbeingdripfedoverthecontractduration.

Typically,brokerschargingvolumetricfeesdon’thave

agreementswiththeendusertodeliverasetscopeof

works.So,theenduserdoesn’thaveanycontractual

servicelevelstomeasurethebrokeragainst.Sothebrokergetstheirfees,butwithnoobligationtoprovideanylevelofserviceotherthanplacementofasupplycontract.

Bynatureofthisarrangement,brokersareincentivisedtogetenduserstosignsupplycontractswhenitsuitsthe

broker-notwhenthemarketconditionssuittheenduser.Thisdrivesthewrongbehavioursamongstbrokers.

TheprevalenceofTPIengagementshowcaseshow

manufacturersareutilisingmarketexpertisetoimprovetheirmarginsandfindwaystobecomemorecompetitiveinachallengingbusinessenvironment.

49%

27%

18%

7%

Yestheychargeafixedp/kWhcharge

Yestheycharge

afixedfeeper

month/annum

Yestheycharge

a%ofour

energyspend

No

Source:MakeUK/InspiredEnergySurvey,2025

EnergyBrokers:Intermediariesinachangingenergylandscape

Negativepractices

withintheTPImarket

MakeUKresearchhasindicatedmostmanufacturershavenotfacedissueswiththeir

TPI–inthiscaseanenergybroker.However,asmallpercentagehavefacedchallenges,includingcommunicationandbillingissues.Thisreflectswiderresearchfromour

AdvantagePartner,Inspired.

Despitethis,itisworthconsideringwhetherthereis

anythingthatcouldbedrivingthelowlevelsofreported

issues.Thecomplexnatureoftheenergymarket

suggeststhatmanufacturersmayberestrictedintheir

abilitytointerrogatebillsandunderstandifanyfeesare

disproportionate.Thisiscoupledwithalackofindependentservicestoanalysebillsandadvisebusinesses.

Badactorsandunderhandtacticscanmaterialiseatanymarket.InthecaseofTPIs,thesecouldincludecharginghiddenfeesandcommissions.

Followingaconsultationonestablishingaregulatory

Chart4:Haveyouhadanyproblemswitheitheryourbrokerorsupplier?(pickone)

75%

schemeonTPIs,thegovernmentresponsedocumenthighlightedextremebehavioursinthenon-domestic

retailenergymarket,suchasbrokersmisrepresentingthemselvesasenergysuppliersandcontributingto

issuesaroundchangesoftenancy.10Theevidence

submittedforthisconsultationsuggestsidentifiedrisksandconsumerharmsareconcentratedinthenon-

domesticTPImarket,specificallythesubsetofnon-

domesticTPIsservingSMEandcharitablecustomers.

Aspartofourresearch,wehavecollectedanumberof

casestudiestohelpbetterunderstandtheapproachandimpactthatunderhandtacticscanhavetomanufacturers.

10%9%

6%

BrokerSupplierBothNotatall

Source:MakeUK/InspiredEnergySurvey,2025

10

Regulatingthird-partyintermediaries(TPIs)intheretailenergymarket:governmentresponse(accessiblewebpage)-GOV.UK

10

EnergyBrokers:Intermediariesinachangingenergylandscape

11

CASESTUDY:

PennineHealthcareLimited

PennieHealthcareLtd,incorporatedin1963,isaleadingmedicaldevice

manufacturerbasedinDerbywhomarketanddistributeproductsinover50

countriesworldwide,employingaround180people.TheyhavebeenimpactedbyaTPIprovidingratesunreflectiveofthemarkettyingthemintoanexpensivecontractuntil2029whenthemarketwasn’tpresentinggoodvalue.

Ananalysisoftheircontractsfoundthattherewasasignificantdifferencebetweenthemarketpricesavailableonthedayofthecontractoffersandtheratessecuredonthecontracts.Thebelowtableshowsthedelta

betweenthemarketpriceonthedayofacceptancevswhattheircontractedrate:

Utility

DifferenceincostbetweencontractpriceandMarketondayofcontractacceptance

Annualcostdifference

Electricity

15.5715p/kWh

£292,276

Electricity

10.7593p/kWh

£190.757

Utility

DifferenceincostbetweencontractpriceandMarketondayofcontractacceptance

Annualcostdifference

Gas

8.985p/kWh

£15,267

Gas

7.1444p/kWh

£12,625

Withfurtherinterrogationitwasfoundthatpreviouscontractshadsimilarinstancesofinflatedprices.

ThisisconsideredbadpracticefromtheTPIthatisarrangingthecontractespeciallyasthecontractswere

offeredsofarinadvanceduringatimethatthemarketwasn’tfavourabletoacceptpricing4yearsbeforethesupplyperiodcommenced.Withinthedifferenceincostbetweencontractpriceandmarketpricewastheir

hiddencommission.

ATPIshouldbeworkingintheclientsbestinteresttorecommendpro-activitywhenthemarketispresentinggoodvalue,butthiswasanoccasionwhenthemarketwaspresentingbadvalueforpro-activity.

Ourunderstandingofthisagreementisthattherewasahiddencommissionincludedwithinthecontracts

(priortoOFGEMforcingsupplierstodisclosetheTPIcommissiononthecontract)andthismayexplaintheirencouragementtosigncontractssofarinadvanceatuncompetitiveprices.

EnergyBrokers:Intermediariesinachangingenergylandscape

12

CASESTUDY:

TEMCOWire

TEMCOWire,establishedintheUKsince1906andbasedinGloucestershire,is

oneoftheworld’sleadingspecialistsofhighlyadvancedcopperandalloy-based

products.TheyhaveprovidedexamplesofpoorexperienceswithintheTPImarketwhichhasimpactedtheirtrustinusingexternaladvisers.

TheyhaveexperiencedunderhandtacticsbeingusedbytheirbrokerthroughundisclosedtermswithintheirLetterofAuthority(LOA)whichallowedcontractterminationandrenewalwithoutd