TEPA: 70% of C&I Retail Deals in Competitive Markets are Closed by Brokers
The Energy Professionals Association (TEPA) announced on August 2 that a study it commissioned has found that nearly 70 percent of non-residential – meaning, commercial and industrial –retail transactions in competitive markets are transacted with brokers.
Established in 2005, TEPA is a 501 (c)(6) organization that comprises aggregators, brokers, and consultants (A/B/Cs); retail energy providers (REPs), and affiliate members.
On behalf of the association, the Boston-based Energy Research Consulting Group (ERCG) conducted an Energy Aggregator-Broker-Consultant (A/B/C) Retail Market study, in an effort to better understand the competitive retail market, as well as to help define standards of service within the ABC community.
“The recent TEPA ERCG research is the largest study of the competitive retail markets in recent years,” commented TEPA President David Roylance, adding, “From this comprehensive study we’re able to understand the size of competitive retail markets, and the influence of brokers in order to better define our industry and expand the tools most preferred by consumers within these markets.”
More than 130 companies responded to the A/B/C Market Insights survey, which is a new record for survey respondents in the industry, TEPA said. The firms that responded represented over 400 million megawatt-hours (mWh) of annual volume under management, or approximately 82 percent of estimated brokered U.S. power sales.
“Our recent broker study is one of the most ambitious research projects of its kind,” said TEPA Vice President Andrew Barth. “The results have provided us with actionable data that we can use to expand and build programs that are meaningful to our members, as well as the consumers they serve. With the information we now have, we’re able to strengthen our current education program and develop new certification initiatives that will likely influence the national broker community.”
Among the findings:
- An increasing number of businesses are using the services of ABCs to access competitive energy supply and to navigate the innovative tools, including demand response and distributed generation, facilitated by competitive market design;
- TEPA members tend to be larger companies than non-TEPA members;
- TEPA members were more likely to offer expansive solutions compared to non-TEPA ABC; and
- By 2020, estimated ABC-facilitated transaction will reach 571 terawatt-hours (TWh) and $2.0 billion in fees;. In addition to announcing the successful ABC Market Insights Study, TEPA has also welcomed nine new members companies to the Association.
ABC companies that recently have joined TEPA include Energy Professionals, EnerConnex, GreenCrown Energy, Maximum Power, and Tobelmann Energy Brokers. Retail Electric Providers that have recently joined TEPA include Spark Energy and UGI Energy Services.
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