Guide / Prepare
Using one TPI: keep the buying decision under your control
If you choose TPI support, a single appointed adviser can coordinate the work. Clear authority, transparent remuneration and an independent comparison keep that relationship accountable.
Choose the adviser before commissioning the exercise
A third-party intermediary, or TPI, can help gather information, approach suppliers and manage an energy contract. The quality and scope of that work vary. Where a school chooses this support, one accountable coordinator can make responsibilities clearer. It is an operating choice rather than a legal requirement or a reason to stop testing value.
Select the adviser using the process required by your procurement and governance rules. Then define the supply procurement separately. A well-run competition for the advisory service does not automatically establish that the later energy supply award is compliant. The school or trust retains responsibility for its decisions.
Keep the agreements distinct
Understand the school's relationships with both the adviser and the supplier. A letter of authority (LoA) sets out what the adviser may do. It does not replace either contract. Ask whether ending the advisory relationship affects fees embedded in an existing supply contract. Do not assume that commission stops automatically.
| Document | Purpose | School's control |
|---|---|---|
| TPI service agreement | Services, fees, responsibilities, term and exit arrangements. | Approve deliverables, remuneration, performance and any exclusivity. |
| Quotation-stage letter of authority | Permission to obtain relevant information and quotations. | Limit actions, named parties and duration; retain contract acceptance. |
| Energy supply contract | The commercial terms with the licensed supplier. | Approve the procurement, total commitment and authorised acceptance. |
Use a tightly scoped letter of authority
DfE says the quotation-stage LoA should permit quotations only and last no more than 12 months. Its energy guidance says it should not authorise contract signature. Review any wording about renewals, termination notices, subcontractors, data access and acceptance instead of signing a broad standard document unchecked.
Record when authority starts, what it covers and how it ends. Confirm the supplier understands the limits. Where the adviser needs further authority later, consider that request separately through the school's approval process. Limit access to the information needed, with clear arrangements for secure sharing and return or deletion on exit.
Test the adviser before relying on its recommendations
Ofgem's July 2026 good-practice guidance describes expected transparency and fair value while preparation for future TPI regulation continues. Keep that distinction visible: current law, supplier obligations, voluntary standards and proposed regulation are different things.
- Ask which suppliers it approaches, which it excludes, and whether it searches the whole market or a panel.
- Request relevant school references and sample comparison, reporting and issue-resolution documents.
- Identify supplier relationships, ownership links, introducers, subcontractors and financial incentives.
- Check legal identity, insurance appropriate to the service, and the complaints process.
- Verify relevant dispute scheme membership and the school's eligibility. Membership is not an Ofgem licence or a guarantee of quality.
- Confirm named responsibility, response times, data access, handover and the cost of optional services.
Translate commission into pounds over the full term
Request all direct fees, supplier-paid commission, rebates and other benefits, together with how they are recovered. Show the amount already included in quoted energy costs so it is visible without counting it twice. Separate additional consultancy and audit charges.
For a consumption uplift, estimated commission in pounds equals uplift in pence per kWh multiplied by forecast kWh across the contract, divided by 100. An illustrative 0.2p uplift on 500,000 kWh each year for three years totals £3,000. This is arithmetic, not a typical fee or a recommended price. Actual usage and contractual terms may alter the amount.
Evaluate the fee against specified work and outcomes, not simply its apparent size. A low fee with little support and a higher fee with valuable deliverables are different propositions. Ask what remains payable if the exercise produces no acceptable contract, the school changes its plans, or the relationship ends.
One coordinator still needs an independent check
DfE advises that even where a broker provides multiple quotes, the school should seek at least one quotation from another supplier rather than another broker. Build that independent comparison into the brief. Relevant framework comparisons may also support the evaluation, subject to applicable academy and procurement requirements.
Use the same period, volumes, charge treatment and service assumptions. Record why offers are comparable or where they differ. Keep the decision with the authorised school or trust representative, supported by written evidence. No adviser should need unchecked signing authority to demonstrate its value.