Customers drive TPIs to go green
In 2019, large consumer-facing businesses led Third Party Intermediaries (TPIs) to increase their valuation of green power contracts backed by Renewable Energy Guarantees of Origin (REGOs). In this weeks Chart of the Week, we look at Cornwall Insight’s 2019 TPI Satisfaction Survey, and the shift in I&C TPI valuation of services beyond energy contracts towards green power.
The TPI Satisfaction Survey is an annual report which details TPI views on services they receive from energy suppliers. The 2019 edition captures the views of almost 80 TPIs, and also asks questions such as which suppliers “meet TPI needs” best and whether TPIs would recommend suppliers for their products and service.
This year’s survey revealed a number of changes across the supplier rankings, as well as the emergence of REGOs and Demand Side Response (DSR) as highly valued services beyond energy contracts from suppliers.
Figure 1 shows the increase in TPI valuation of REGOs and DSR compared to the benchmark most popular service. This moved REGOs and DSR up the service rankings. Dedicated account managers remained the most valuable service beyond energy contracts.
TPIs found, compared to 2018, I&C businesses are more likely to engage with green energy and ask TPIs for a renewable energy quote. One TPI stated: “[in 2019] demand for green products [from businesses] has increased on a monthly basis”.
These large businesses are under pressure to source both renewable power and gas in order to fulfil net zero aspirations. However, anecdotal evidence from TPIs suggested significant barriers to the uptake of green gas still exist. In discussions, TPIs reported that premiums on the renewable variant of gas have risen from £3.50/MWh to as high as £11.0/MWh due to a lack of supply, making it unaffordable for most businesses.
For further information on our TPI Satisfaction Survey, please contact Sam Holland on 01603 542172 or email@example.com