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Reverse Energy Auction
The Value of a Reverse Energy Auction
A Reverse Energy Auction brings together over 500 plus electricity, gas and alternative energy suppliers from around the nation into a collective bidding war for our respective clients. A majority of the suppliers only participate in the auction process. They only bid on the larger users of energy. The biggest advantage of this format is that this process eliminates the suppliers sales and marketing loads to the pricing and you are only dealing with the trade desk load which the suppliers have to keep razor thin to obtain your business.
Key points of the Reverse Energy Auction process
- No costs associated to put the bid process together and have the auction
- Once auction takes place the client can reject the offer or accept it and sign a one year or multiple year contract to lock in the rates
- Auction takes place at employers location, in real-time
- Savings are typically between 10 – 20%
- Automated web based platform, each with a ‘bid’ time and date stamped based upon first bid submitted.
- Reverse Energy Auction drives energy prices down to the BARE MINIMUM!!
- Always Lowest price of any energy procurement process
- Real winner is the energy buyers
Other Reverse Energy Auction Benefits to our numerous clients are:
- Client can justify if their current rates are the most competitive
- Shortens Procurement Timeline
- Reduces Risks
- Supports Compliance
- Helps client achieve and manage budgetary objectives
- Significant Cost Savings
- Fulfills the green energy requirements at the least cost where applicable.
- Apples to apples comparison: With an online event or auction, the customer sets the parameters that suppliers must bid on.
- Expanding the supplier pool: The difference between letting 2 or 20 suppliers bid on an RFP is nominal. Thus, there is no marginal cost to adding another supplier to the bidding process. In essence, more suppliers mean potential lower prices.
- One event, many auctions: In an online procurement event, it is possible to run multiple auctions for the customer.
- Auction Sequence: Auctions can be run in immediate succession, by testing various bid parameters, suppliers can quickly react to a loss and sharpen their pencils to win the next round.
- Closing in Real Time: Since the underlying commodity in energy is volatile, the amount of time between accepting a supplier’s winning bid and signing the contract ultimately affects the rate.
- Audit Trail: Automation clearly has its benefits. An online procurement process can capture, catalog and time-stamp all bidding activity. This provides our clients with a thorough audit trail of their energy procurement.
- Sarbanes-Oxley Compliant
- Connection: Energy buyers gain a significant advantage when multiple suppliers in a structured online auction are bidding for their respective business.
- Other Auctions:
- Offer demand response auctions in appropriate states
- Offer a platform for carbon credit auctions
Reverse Energy Auction
The following is a partial list of clients:
Business: Lockheed Martin, Qwest Diagnostics, Pratt and Whitney, AK Steel, Whirlpool, Proctor and Gamble, Cargill, Penske, Sara Lee, Welch’s, Sikorsky, The Boston Beer Co., Dallas/Ft Worth Airport, Ericsson, ITW, Cushman & Wakefield, TC Industries, Climax Manufacturing.
Energy Providers: Con Edison Electric, Detroit Edison, Delmarva Power, Vectren, Verdant Energy Ltd, Native Energy, Austin Energy Orion, Puget Energy, Center Point Energy, South Jersey Gas, Columbia Gas of Ohio
Medical Groups/Hospitals: Medisys Health Network (NYC), St Barnabas Health (NYC), Albany Medical Center, Dartmouth Hitchcock Medical ( New Hampshire), Alexian Bros Health, Lewis County Hospital, Adventist Health Care, St Luke’s Hospital, Catholic Health Care Partners( Ohio), Excellus Blue Cross Blue Shield
Colleges/Universities: Ohio State University, Brown, Bard College, Columbia, Roger Williams, Providence College, Bently, George Washington, University of Connecticut
State Government: New Jersey, Pennsylvania, Connecticut, Massachusetts, Rhode Island, Maryland, Delaware
Federal Government: Smithsonian Institution, Department of Justice, Social Security Administration, US Postal Service, US Mint, United Nations, EPA, GSA, FCC, Veterans Affairs, NASA.
In closing, the process costs the prospect/client nothing to participate, and all savings are a positive addition to your bottom line. It empowers an organization to be more competitive both nationally and ultimately globally by reducing one of their most critical components. THEIR ENERGY. In essence, it is a WIN/WIN.
