Tem-Energy

What Tem-Energy does

Tem-Energy Limited ("tem") is a London-headquartered, venture-backed scaleup founded in 2021 by Joe McDonald, Bartlomiej Szostek, Jason Stocks, and Ross Mackay in the wake of the UK energy crisis. The company operates an AI-native energy transaction infrastructure designed to replace the wholesale-market energy trading layer with direct, AI-driven matching between renewable generators and business electricity customers. Its core technology stack comprises two tightly coupled proprietary systems: Rosso, an AI-powered transaction engine that uses machine learning and large language models to forecast supply and demand, optimise generator-to-business matching, and remove 5-6 layers of intermediaries; and RED™, a customer-facing modern utility platform that delivers line-by-line transparent billing, half-hourly meter data reconciliation, hourly usage insights, and onboarding from quote to live in minutes. Tem reports 6,000+ UK sites running on RED, more than 3,000 business customers, and over 22,000 renewable generators in its network.

Tem monetises as a transaction-taker on the energy it processes, capturing the spread between what generators receive (~10% more per MWh than wholesale) and what businesses pay (~30% lower than traditional utility pricing), supplemented by per-kWh service fees on RED contracts. The platform operates through an Ofgem-licensed supply partner (Versa Energy), which delivers regulatory compliance and Energy Ombudsman protection while tem itself administers customer contracts. Distribution is hybrid: direct self-serve via the tem web app for SMBs, inside and field sales for mid-market and enterprise, and a growing channel of energy brokers and consultants using RED on behalf of clients. As of February 2026 the company has raised $94 million in total funding (seed £2.5M in June 2023 led by AlbionVC; Series A £10.5M in September 2024 led by Atomico; Series B $75M in February 2026 led by Lightspeed Venture Partners) at a ~$300 million post-money valuation, employs 90+ people, and has announced first international expansion into Texas and Australia.

Name

Tem-Energy

Legal name

Tem-Energy Limited

Website

https://tem.energy

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

101–250 employees

Short description

Tem-Energy operates an AI-native energy transaction infrastructure, using its Rosso engine to match UK renewable generators directly with business customers via the RED utility platform, processing $300M+ in annualised gross transaction value across 6,000+ sites.

Ownership category

akta.pro rank

Product category

Energy Transaction Platform

NAICS

Electric Power Generation, Transmission and Distribution (2211), Fuel Dealers (45721)

SIC

Cogeneration Services & Small Power Producers (4991)

akta.pro primary industry

Auto-Switching & Price Comparison Platforms (EUAGAEAD)

Keywords

• Renewable energy procurement
• AI energy trading
• Business electricity supply
• Renewable energy marketplace
• Utility transaction platform

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Transaction-based energy marketplace (the "Stripe of energy"): Core revenue model: tem captures margin as the difference between what generators receive and what businesses pay on energy transacted through the Rosso engine / RED platform, bypassing the wholesale market. Positioned as the "Stripe of energy" — transaction-taker on AI-native energy infrastructure. Processed $300 million in annualised gross transaction value.
2. RED™ utility service recurring revenue: Recurring B2B utility contract revenue from businesses signing RED™ contracts; customers pay per kWh consumed (per-unit pricing) with line-itemised transparent billing. Renewal rate for generators over 95%.
3. Licensing to global utilities (planned): Future revenue stream — tem plans to license its technology to global utilities as part of Series B expansion plans.

Pricing tiers

Go-to-market motion5 records

Distribution channels6 records

Marketing channels10 records

Core offering

Tem-Energy operates an AI-native energy transaction infrastructure composed of two proprietary systems: Rosso, an AI-powered transaction engine that uses machine learning and large language models to forecast supply and demand and match renewable generators directly with business customers; and RED™, a modern utility customer platform built on top of the engine that delivers line-by-line transparent billing, half-hourly meter data reconciliation, and direct renewable supply to UK businesses. The platform removes 5–6 layers of intermediaries and bypasses the wholesale market, capturing margin as the difference between what generators receive and what businesses pay.

Product overview

Tem-Energy offers a single AI-native energy transaction platform composed of two named, tightly coupled products: Rosso (the underlying AI transaction engine / pricing infrastructure) and RED™ (the customer-facing modern utility built on top of it). The platform is structured as core infrastructure (Rosso) plus a customer-facing utility product (RED), with the Generator side of the platform serving renewable energy producers. Together they replace traditional wholesale-market energy trading with direct, AI-driven matching of renewable generators and business customers.

Differentiator

Problem solved

Functional benefit

Brands

• RED™: The company's modern utility / customer-facing platform (also called a 'neo-utility') powered by its AI-native infrastructure, used by businesses and brokers to manage energy contracts, billing, usage data, and contracts.
• Rosso

Products and services

• RED™ (tem modern utility) Customer-facing modern utility service for UK businesses, powered by tem's AI-native transaction infrastructure. Connects businesses directly with renewable generators, offers line-by-line transparent billing, half-hourly reconciliation, predictable pricing, and reported savings of up to 30% versus traditional utility supply. Operates alongside an Ofgem-licensed supply partner (Versa Energy) for compliance.
• Rosso (AI transaction engine / pricing infrastructure) The AI-powered transaction engine and pricing infrastructure that sits beneath RED. Matches renewable generators to business demand, removes intermediary and wholesale-market markups, and uses machine learning and large language models to forecast supply and demand.
• Generator Portal (For Generators) Generator-facing counterpart to RED. Onboards renewable generators (solar, wind, hydro, anaerobic digestion, biomass, EfW), pays them on self-billing invoices within 10 business days of month-end, and provides daily generation/earnings visibility. Generators typically earn around 10% more per MWh than the wholesale route.
• Physical-hedging market (with Electron) UK-first physical-hedging capability built on top of Rosso. Reserves real battery storage capacity in advance via Electron's flexibility marketplace and dispatches it when tem's AI predicts a supply/demand gap, removing last-minute wholesale premiums from customer pricing.
• Exempt Supply (P442) administration service Value-unlock service layered on RED following the 2024 P442 government scheme update. Tem checks eligibility, prepares paperwork, and liaises with the central body on behalf of RED customers, unlocking additional savings or earnings for eligible businesses and generators.

Quantifiable outcome

• Up to 30% reduction in business energy bills by removing wholesale markups and intermediary fees.
• +7 more outcomes

Named customers8 records

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

AI capability8 records

Feature5 records

Partnerships

Ten partnerships are on record, tiered core and flagship.

• Silverstone (Silverstone Circuit)coreGTM or Marketing Partner · 31 July 2025Co-marketed partnership with Silverstone ("Silverstone Teams up with Tem to Power a New Energy Future for British Motorsport"). Silverstone is also a customer, reporting 25% lower energy costs and serves as a flagship testimonial case study.
• Versa EnergyflagshipStrategic or Co-development PartnerLicensed utility partner registered with Ofgem and the Energy Ombudsman. Versa Energy handles meter registrations, compliance checks, and is the licensed party behind the regulatory interface; tem administers customer contracts on top. "We work with a licensed supply partner, so you're fully protected under UK regulations."
• Electron (ElectronConnect)flagshipStrategic or Co-development PartnerStrategic technology partnership to build the UK's first physical-hedging market. Electron runs one of the UK's biggest flexibility marketplaces connecting battery storage operators; tem contracts battery capacity in advance and dispatches it through Electron's platform when renewable output falls short, avoiding the last-minute wholesale premium. "tem and Electron have combined that infrastructure with tem's transaction model to create the UK's first physical-hedging market."
• ModulrcoreTechnology or IntegrationUK-based payment and delivery service provider used by tem to process Contact, Financial and Transaction Data (per Privacy Policy).
• CreditSafecoreTechnology or IntegrationUK-based credit history data provider used by tem to collect credit history data on customers (per Privacy Policy).
• Google AnalyticscoreTechnology or IntegrationAnalytics provider used by tem to track and report website traffic and usage patterns (all data stored in EEA/UK).
• HubSpotcoreTechnology or IntegrationCRM and tracking provider for user actions and personalised user experiences. Used for marketing communications.
• HotjarcoreTechnology or IntegrationMonitors user interactions, provides heatmaps, and records user sessions to enhance user experience.
• SentrycoreTechnology or IntegrationUK-based debugging and website performance monitoring service used to maintain optimal website performance.
• Google AdscoreGTM or Marketing PartnerUK-based advertising network used for paid acquisition.

Scale indicators11 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• Octopus Energy: UK-based renewable energy challenger with both B2C and B2B arms, a tech-first platform (Kraken), and aggressive international expansion. Most direct functional competitor to tem's modern-utility proposition in the UK business energy market.
• OVO Energy: Major UK energy challenger serving households and businesses, with strong renewable credentials and its own tech platform. Competes head-to-head with tem for UK business energy contracts, particularly in the SME and mid-market segment.
• SmartestEnergy: UK B2B renewable electricity supplier (Marubeni-owned) that buys directly from independent generators and sells to business customers. Operates in the same direct-from-generator niche as tem, targeting the same supply and demand sides.
• Piclo: UK-based renewable energy matching platform connecting generators with business demand via data-driven matching tools. Closest peer to tem's marketplace/transactional layer, though without the full neo-utility billing stack.
• Bryt Energy: UK B2B renewable electricity supplier focused on businesses seeking traceable renewable supply. Competes with tem for mid-market and enterprise UK business customers on renewable and transparent billing.

Broad incumbents

• EDF Energy: One of the Big Six UK utilities and a major B2B electricity supplier with its own generation portfolio. Competes with tem across UK business energy but as part of a much broader retail and generation portfolio.
• Shell Energy: Shell's UK retail energy business serving large business customers, with growing renewable supply offers. Incumbent competitor with deep capital and license assets versus tem's tech-led proposition.
• British Gas: Largest UK energy supplier (Centrica-owned) with dominant B2B presence and an in-house renewable supply arm. Broad incumbent offering competing with tem on price and renewable credentials across UK business customers.
• E.ON UK: One of the Big Six UK utilities serving businesses with both fossil and renewable tariffs. Broad incumbent competing with tem across UK business energy, with substantial capital and licensed infrastructure.

Emerging players

• Arcadia: US clean energy data and marketplace platform connecting businesses to renewable supply and managing community solar programmes. Comparable to tem on the data-and-marketplace approach, but US-focused and at earlier scale.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/tem-energy
• Instagraminstagram.com/tem.energy

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries1 record

Funding overview

Funding rounds5 records

Investors10 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Tem-Energy