25 Jul Why You Should Run Online Reverse Energy Auctions
As an energy broker, you may be wondering how you can run your own online reverse energy auction. The answer is Albireo’s energy software. We provide an online reverse auction portal that helps brokers set up auctions for commercial energy pricing opportunities.
Why Use an Online Reverse Energy Auction?
Reverse energy auctions incentivize greater competition among suppliers in the energy market and encourage better pricing. Furthermore, by offering customers more value through a reverse energy auction, brokers can create a stickiness factor that helps to retain customers by not competing on price alone.
About EnergyAuctions (EA)
Like with all of the applications within our energy management software suite, EnergyAuctions (EA) can be white labeled to fit your style and branding. Likewise, when brokers run an auction through EA, it will be a fully branded reverse auction website that customers think is the brokers own application.
The run a reverse energy auction, the first thing a broker must do is scheduled a pricing opportunity. Following that, they can invite energy suppliers to the scheduled auction. Once the auction starts, energy suppliers will be able to submit bids in real time, along with other suppliers, all while the customer is watching. Given this design, the process is transparent, meaning that all parties can watch as bids get submitted in real time, until the last minute when the process goes blind. At this point, the energy broker and the customer can still see the prices being submitted, but the suppliers can’t.
Brokers and customers can then compare those bids, and check out relevant metrics that provide greater insight into the total cost of the proposed contract price. These metrics help customers get a sense of what their energy spend will be for the future contract based on proprietary logic in Albireo’s EA portal that helps to project usage and cost based historical usage and other market factors.