For energy brokers accustomed to serving small and medium-sized enterprises (SMEs), the industrial and commercial (I&C) market can look like a natural next step. After all, it offers larger contracts, longer-term customer relationships and greater scope to add value. Yet I&C is not simply SME procurement on a bigger scale. It is a specialised market, built around bespoke requirements, supplier relationships, detailed consumption data and sustained account management.
A different sales process
The biggest distinction between SME and I&C is the level of manual, bespoke work involved. SME procurement is often system-led. Brokers can obtain prices quickly, compare options and return to the customer with a relatively straightforward recommendation.
In I&C, suppliers assess each opportunity individually. Larger consumption requirements must be tendered to appropriate suppliers, with the broker needing to manage questions, perform credit checks, and revise requirements several times before a contract can be secured. Plus, energy pricing has never been more volatile. Meaning wholesale conditions can often move while this work is under way, so a quote that looked attractive one day may need to be refreshed the next.
That makes the broker’s role far more involved than simply obtaining a price and sending it to the customer. Success depends on coordinating multiple parties, maintaining momentum and knowing when to transact or when to wait.
A larger opportunity
The commercial attraction of the I&C market is clear. A single I&C customer can be worth considerably more than several SME accounts, allowing a broker to build a valuable portfolio without needing the same volume of customers.
I&C also creates stronger opportunities for long-term relationships. Contracts typically run for longer periods, and procurement can take place several years ahead. Customers with 20, 30 or more meters may have different end dates across their estate, creating scope to align contracts, improve visibility and manage the portfolio strategically.
The trade-off is effort. Each customer carries more value, but winning and retaining the business requires greater expertise, more administration and a higher level of service.
Barriers to entry
For brokers entering I&C, the first challenge is access. Whether that be access to suitable pricing, access to suppliers with an appetite for larger requirements, or access to people who understand how the market operates. Strong performance in SME does not automatically translate into I&C competence because the process, risk profile and customer expectation are different.
Time is another constraint. A tender may not produce a response from every supplier. Brokers may need to chase quotations, resolve credit queries, revise specifications and request new prices as the market changes. Without direct supplier relationships and dedicated operational support, an attractive opportunity can become difficult to progress.
This is where an intermediary can help. Here at POWWR, we act as the link between broker and supplier, using established relationships and specialist resources to manage the tender process, reduce friction and help take a deal from initial requirement to completion.
Higher expectations
I&C customers generally require more guidance than you would think. This is because of the sheer complexity of their estates. They may operate multiple sites and meters, have staggered contract end dates and consume enough energy for a poor procurement decision to carry a significant financial cost.
These customers, quite rightly, expect their broker to understand the business objective behind the procurement exercise. Presenting three prices and asking them to choose is not enough. The broker must explain the options, identify relevant risks and guide decision-makers through the process.
Timing is part of that advice. If market conditions are unhelpful, the best recommendation may be to delay the transaction and refresh prices later. That judgement is one of the clearest ways a specialist broker can demonstrate value.
A demanding public-sector or defence requirement may attract attention, but a customer in any industry can be challenging if its usage pattern is unusual or its risk profile falls outside supplier criteria. The broker’s task is to understand the requirement fully and place it with the suppliers most likely to respond.
Data changes the value proposition
The move towards market-wide Half-Hourly Settlement (MHHS) will make consumption data increasingly important. The good news is that a clearer view of what a customer uses and when should support more accurate pricing and open opportunities around flexible demand, battery storage, onsite solar and shifting usage away from expensive periods.
For brokers, the opportunity is to move beyond the role of price finder. Those who can interpret consumption patterns and help customers understand their operational choices can contribute directly to cost control and energy strategy.
Renewables add complexity
Customers are asking more questions about provenance and sustainability, meaning the conversation is no longer limited to finding the cheapest unit rate. The move towards renewables is making the market both more interesting and more complex. Renewable output such as wind and solar does not always coincide with business demand, creating a gap between when electricity is generated and when it is needed. Yet, for large users able to adjust their operations, store electricity or generate power onsite, that mismatch can create value.
The direction of travel is clear. The brokers that win I&C will combine procurement skills with market knowledge, data interpretation and practical energy management. The prize is a more valuable customer relationship that can provide resilience. However, earning it demands specialist capability, patient execution and advice built around the customer’s business. Make sure you give yourself every opportunity to succeed.
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