The energy market uses a lot of labels:

• Broker

• Consultant

• TPI

• Procurement adviser

• Bureau provider

• Energy manager

Sometimes these terms are used carefully. Often, they are used interchangeably. That can make it difficult for buyers to understand who they are dealing with, how that person is paid, and what role they are actually performing.

This matters because the wrong assumption can lead to the wrong relationship.

A business may think it has appointed an independent consultant, when the arrangement is closer to brokerage. It may think it is receiving strategic advice, when the service is mainly supplier pricing. It may assume invoice validation is included, when the adviser only supports the tender. It may believe fees are transparent, when income is being recovered through supplier commission.

None of these models is automatically wrong.

But the buyer should know which model it has chosen.

What is a TPI?

TPI stands for third-party intermediary.

In simple terms, it is a broad label for an organisation or person that sits between the customer and energy suppliers. That can include brokers, consultants, price comparison services, switching services and other intermediaries involved in arranging or supporting energy contracts.

The term is broad, which is part of the problem.

A TPI might provide simple price comparison. Another might run complex tenders. Another might manage flexible purchasing. Another might validate invoices or provide energy reporting. Another might advise on PPAs, REGOs or carbon reporting.

The label alone does not tell the buyer enough.

What does a broker usually do?

An energy broker usually helps a customer secure supply contracts.

At its simplest, the broker gathers customer information, approaches suppliers, compares prices and supports the customer through contract acceptance. Some brokers also provide account management, renewal reminders, billing support and basic market updates.

Many brokers are paid through supplier commission. That commission may be built into the energy price and paid by the supplier over the life of the contract. Other brokers charge direct fees, or use a combination of models.

There are good brokers and poor brokers, transparent brokers and less transparent brokers.

The important point is that the buyer should understand the service and the payment model before proceeding.

A broker can be valuable where the need is straightforward, the buyer wants market access, and the service is clear.

But if the business needs deeper strategy, complex analysis, flexible purchasing governance, supplier management or independent review, brokerage alone may not be enough.

What does a consultant usually do?

An energy consultant should usually be more advisory.

That might include procurement strategy, tender design, market engagement, risk assessment, contract review, flexible purchasing support, invoice validation, supplier management, renewable product advice or internal governance.

A consultant may still approach suppliers and run tenders. The difference is usually in the depth of the work, the independence of the advice and the degree to which the consultant helps the buyer understand the decision, rather than simply present prices.

For example, a consultant might challenge whether the business should go fixed or flexible. They might test whether a green tariff is enough for reporting. They might review whether a flexible contract is being properly managed. They might identify that the issue is not the supplier rate, but poor data, weak billing control or unclear internal ownership.

A good consultant should make the buyer more informed, not more dependent.

The payment model matters

One of the most important questions is how the adviser is paid.

There are several common models:

• Supplier commission

• Direct client fee

• Fixed project fee

• Retainer

• Hourly advisory fee

• Margin included in the contract

• Hybrid arrangements

Again, not every commission model is bad, and not every fee-based model is automatically better.

But transparency matters.

A buyer should know who is paying the adviser, how much is being paid, whether the fee changes by supplier, whether the adviser has access to the whole market, and whether any recommendation could be influenced by the payment structure.

This is particularly important for larger energy users. A small commission per kWh can become a large sum over a high-volume portfolio. The client may be paying far more than it realises, even if the cost is not shown as a separate invoice.

Ask what is actually included

The title on the proposal is less important than the scope.

Before appointing a broker, consultant or TPI, buyers should ask:

• Are you independent from suppliers?

• How are you paid?

• Will you disclose all fees, commission or margin?

• Which suppliers will you approach?

• Are any suppliers excluded?

• Will you provide the pricing assumptions?

• Will you review contract terms, or only compare prices?

• Will you support after the contract is signed?

• Is invoice validation included?

• Will you manage flexible purchasing decisions?

• Who owns the data and documents?

• What happens if we stop working together?

These questions should not offend a good adviser.

They should welcome them.

Regulation is changing, but buyers still need to ask questions

The UK market is moving towards stronger oversight of TPIs. That should improve standards over time, especially around transparency, conduct and authorisation.

But regulation will not remove the need for buyers to understand what they are buying.

A regulated adviser can still offer different services from another regulated adviser. A broker can still be useful. A consultant can still be poor. A transparent fee can still be expensive. A cheap service can still be unsuitable.

The buyer still needs to ask the right questions.

The real difference is value

The difference between a broker, consultant and TPI is not just terminology.

It is about role, responsibility, independence, payment and value.

If the business needs supplier prices, a broker may be enough.

If the business needs strategy, risk management, contract review, flexible procurement support, renewable advice or commercial challenge, it may need something broader.

The wrong model can create frustration.

The right model can create clarity.

Energy buyers do not need to become experts in industry labels. But they should understand who is advising them, how that adviser is paid, what service is included, and whether the relationship gives the business control or simply another layer of dependency.

The question is not only, “Who can get us a quote?”

The better question is, “Who is helping us make a better energy decision?”