EnergyAuctions (EA) is online reverse auction software that is part of Albireo’s energy management platform.
EnergyAuctions is an online, reverse auction that enables energy brokers to invite suppliers to bid on contracts for individual businesses and aggregations. Reverse bidding encourages suppliers to lower their bids in a competitive environment to acquire customers. EnergyAuctions affords brokers greater bargaining power to negotiate lower rates on energy contracts for their customers. Beyond the benefits of competitive pricing, our online EnergyAuctions are completely transparent and allow customers to watch auctions in real-time.
How Does Online Reverse Auction Software Work?
The deregulation of the energy marketplaces opened the door for energy suppliers to enter the market. Increased competition and choice placed downward pressure on the price of electricity and natural gas, ultimately benefiting customers. Reverse auction sites meet energy suppliers in the middle by providing a platform for brokers to choose among the most competitive contracts for their customers, while also opening up access to new channels for suppliers to acquire customers.
Essentially, energy brokers set up reverse energy auctions and invite suppliers to join and place competitive (lower) bids for their business. The system is transparent, so energy brokers can invite their customers to watch in real time. Energy brokers set up the auctions at specified dates for a defined duration of time. During the last five minutes of the auction, the reverse online auction typically goes blind, increasing the likelihood that suppliers will place lower and more competitive bids.
How Reverse Energy Auctions Benefit Your Customers
Reverse energy auctions are available for supplier bids for both individual and aggregate commercial contracts. With customer transparency and fierce competition, suppliers are encouraged to offer lower prices, saving customers time and money.
An auction provides more control in the hands of energy brokers who can navigate through different bids and choose the best option for their customers. If an auction does not fit the intended goals, it can always be rejected or rescheduled as a future auction.
Customers also receive a detailed breakdown of results in real-time, with a proprietary analysis to help them understand how new contracts will impact future energy costs and budgets.
Albireo’s online reverse auction software benefits buyers by incentivizing suppliers to place competitive bids to lower pricing. Navigating through hundreds of energy contracts and offers manually can become cumbersome to say the least. By using EnergyAuctions, you can and will reduce a lot of the legwork required to search out the best deals and negotiate lower prices for your customer.
If you’re interested in hosting an online reverse auction for your energy supply needs or participating in an auction, contact Albireo for more info or request a demo today!