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. One typical company saved 7% over the best non-auction bid.
This is truly the best process to secure the lowest electricity rates from the energy supplier who wants your business the most.
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 - Every qualified energy supplier in your area will compete for your business, including your local utility.
- Absolute Lowest Prices - The standardized online auction process
allows for maximum competition. All of the suppliers can see the other
bids in real-time. This open bidding process guarantees you the lowest possible prices.
- Least Time - An Energy Auction takes the least time and effort. A single auction takes less than an hour. The shorter the period suppliers must hold their bid prices, the lower the ‘risk-premiums’ built in to their prices.
- Maximum Contract Options - Due to the efficiency of the auction process you can test many different contract combinations and then compare the rates to select the one that you feel is best. In less than a few hours the online auctions can deliver firm price bids for 10 or 12 different types of contract.*
- Least Effort -All bidders receive identical data in a standardized format. This uses less of their time preparing bids.
- It Costs You Nothing Extra - There
is no charge for analyzing your past energy usage, for preparing the RFP, or for the
auction itself.
- Level Playing Field - Every supplier has the same chance of winning your business.
- Standardized - The RFP is standardized and consistent across all suppliers. It covers all the relevant details.
- Transparency - Everything is open and transparent. Suppliers and customers know all contract terms, bids and fees. A comprehensive report is supplied at the end of each Auction.
- No commitment - There is no obligation to accept any bid. Nothing is binding until you accept a bid.
*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.