Are Online Energy Auctions the Best Procurement Method?
The most telling fact of all is that
local electric suppliers like PPL use Auctions themselves to procure their energy. Why? Because they know it is the
best way to lock in
the best possible rates.
Very rarely do you have a situation where the choice is so clear.
If you aren't using energy auctions you are definitely leaving money on the table.
We're neither suppliers, brokers, nor consultants and are
not commissioned by any suppliers, which allows us to provide our customers
advise that's completely unbiased.
Instead of using brokers, we go directly to the energy markets and get ALL available suppliers to bid for your business. We have no relationships with any suppliers, so we don't care which supplier wins your business, only that there's maximum competition between them.
We can answer any questions you may have in a short phone call or in person. Just fill in the Contact Form on the right side of this page and we will contact you in less than a day. Or feel free to call us directly at 484-802-2422 for immediate answers.
Online Energy Auctions are the best option for the following reasons:
Maximum Competition -The electricity market we work with-The Energy Exchange-arranges for all available suppliers in your area (typically 6-10) to compete head-on for your business in a one hour auction.
- Absolute Lowest Rates- The more suppliers who bid for your business, the greater the competition and the lower the rate you get.
- Least Effort- The process is simple, fast and efficient, with minimal management time required (typically 2-4 hours in total.)
- Many customers - of all sizes-large and small use our program on a regular basis.
3 Step Process:
- We need 1 recent power bill (all pages please) to analyze usage patterns
- We need 2 signed Letters of Authorization (a) to get your historical usage data from the local service supplier, and (b) a 1-page, limited time, letter to advise All electricity suppliers that you expect them to participate in the auction if they want your business.
- We run your auction and discuss all the results with you.
If you like the prices offered, you sign a contract directly with the supplier. If you don't like the prices or process, you have no obligation to buy, so there's no downside to working with us.
*Notes:
We can easily run several concurrent auctions for each of the options you wish to consider. Then you can see all the options side-by-side and select the one you like the best. (Different contract types might include 12, 24, or 36 months, fixed or
variable prices, % of “green” power, peak period options, size of
‘bandwidth’ etc. )
Eliminating the Risk Premium
Getting pricing for different contract types from 10 or 12 suppliers with other procurement methods is extremely cumbersome, and takes much longer. This raises the supplier risk which increases your rates! Any change to the RFP requires multiple emails in both directions and can take days.
An online energy auction takes only a couple hours to complete. This minimizes the supplier risk, which allows them to give you the best possible rates.
Energy brokers only represent a few suppliers (typically 3 or 4 out of 10 or more). No single supplier wins all our auctions. On any given day, some suppliers are hungrier for particular types of business than others.
What is the Cost?
An online Energy Auction costs you nothing. A small fee is built into all standard supply rates to cover the procurement process. It costs you nothing extra. Some brokers/consultants will also charge you various separate fees for their services. Applied Energy does not charge any consulting fee for our procurement services.