Third party intermediaries (TPIs)

Third party intermediaries (TPIs) are organisations or individuals that give water-related advice, aimed at helping customers buy water or manage their water needs. TPIs are common in a wide variety of markets including those with similar structures to the business retail market, such as energy and financial services.

The use of TPIs is a key opportunity for customers to engage through a forum they already use for other services and may also offer a range of services bundled and sold together including other utilities. TPIs also have potential to negotiate better deals for customers, making the market more accessible, giving them greater insight into their options, and saving them time. They can also play an important role in the market by helping to foster competition and rivalry between Retailers, to the benefit of customers. However, where there are poor practices, such as misinformation, unclear pricing, and unfair commissions or broker fees, this can lead to customer harm.

To protect customers, we require Retailers who use third parties to represent them in sales and marketing activities to take responsibility for the actions of those representatives and to take steps to ensure that they act in accordance with the Customer Protection Code of Practice . In addition, Retailers are required to obtain written confirmation – known as a letter of authority – from the customer that the third party may act on their behalf. If the customer is a micro-business, this letter of authority must adhere to a template that we publish.

From 17 April 2025, Retailers will be required to only work with TPIs which operate in accordance with principles of good practice laid out in the Customer Protection Code of Practice, and to co-operate with TPIs which are representing a customer unless they have good reason not to do so.