Understanding the process of reverse auction for energy procurement

Posted by Jamess on December 29th, 2016

Leading energy suppliers compete for your business in a transparent, live online auction where you decide which suppliers meet your most important energy needs and criteria. Getting the highest value energy supply agreement is possible through our reverse auction procurement process.

Every energy consumer has different requirements and needs. The reverse auction energy procurement model allows you to see in real-time which suppliers can meet your specific needs and requirements, whether it is energy security for long term agreements, or just low price alone, - you can set the parameters and decide which supplier is right for you.

Transparency and supply choices

Present energy procurement systems lack transparency as they are ruled by the suppliers and brokers. It isn’t that the suppliers don’t consider needs of energy consumers but the truth is that the suppliers don’t always understand needs of consumers, and brokers are going to represent what they want you to buy. Often, that is a choice from only one or two suppliers, and that system favors suppliers and brokers, - not the energy consumer. But the reality is that energy needs are different. Thanks to our reverse auction energy procurement system, we can remove the weaknesses inherent in present broker based systems, or self-procurement. You maintain control, choice, supplier options and full transparency in our reverse auction energy procurement system.

What is the new procurement process?

The process is simple to understand and execute. The process puts energy consumers in control. Now you can choose from more than one or two suppliers, get more energy supply advantages, better terms and value, and often while paying less than what you are paying today. The process involves identifying energy consumption, demands and your requirements, through our energy advisors arranging the live auction for bidding by the suppliers. You will monitor bidding, watch the suppliers compete for your business with a transparent picture of energy prices offered by suppliers.

How to begin?

We bring together an experienced energy advisor to set up the basics, arrange for the auction and help you all along the way. The advisor will not only help you to identify opportunities and determine how the reverse auction energy procurement system can meet your needs but also help you find the most cost effective supplier. The suppliers will consider your energy usage and demand and bid to win your energy supply business. High demand will bring lowest price. But don’t worry, if your demand and requirements are not met, you have no obligation to secure an agreement at that time.

if you have a business, a retail store, a large organization, industry or you run an office, you must consider taking advantage of the reverse auction process. Reducing energy bill will bring down the cost of running the business. You will save some money that you can use in business expansion, maintenance or in other productive work. There are many suppliers and every supplier has different pricing for different needs. The present process follows the downward trend that is price is determined by suppliers with no feedback from consumers.

How is reverse auction beneficial for suppliers?

It is difficult to believe that the reverse auction is supported by suppliers, however they are in favor of the process as it helps them expand their reach. Suppliers are always interested in attracting new energy customers, knowing about customer needs and how to better serve them. They need information about energy consumption by consumers. The reverse auction process follows an upward trend. Energy consumers inform suppliers about their needs and get transparent price quotes for these energy customers.

Energy consumers can take advantage of reverse auction gas and electric with the help of our experienced advisors. The advisors will communicate with our large network of leading suppliers on your behalf, and through the reverse auction energy procurement model. You’ll see a comparison chart that will show comparison of pricing by various suppliers. You may choose the right energy supply solution based upon what you require, or if your requirements are not met, you are not obligated to go forward with any offer.