Australian Energy Exchange

Australian Energy Exchange Reverse Auctions
Reverse Auctions

We negotiate electricity contracts for businesses of all sizes.  

Our range of procurement services are designed to fit each customer’s unique business model. If you spend over $25,000 per year on electricity, a reverse auction executed through the Australian Energy Exchange (AEX) will be the most effective way to secure your business’s energy contract. The event takes as little as 10 minutes and ensures that you are getting the most competitive pricing as suppliers drive prices down through the bidding process.

As a business, you benefit from being able to compare offerings from all major retailers in the Australian electricity market. The reverse auction process fast-tracks procurement and avoids complex and time-consuming Request for Proposals (RFP) or quote comparison processes. You can be sure that on any given day you will secure the best prices on offer in the retail energy market through the AEX.

From first bid to last bid, our AEX platform delivers an average of 6.8% savings for our clients.

 


How does it work?

A reverse auction is a live event, where multiple energy suppliers bid on the same contract and terms and conditions within a fixed timeslot. Retailers can see each other’s bids, but not the bidding retailer's name, providing complete transparency and open competition between suppliers who can reduce their offering price. 

 
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Review your Requirements, Assess Options and Pre-Qualify for Auction

Basic billing information acquired from a recent energy bill is reviewed to ensure your energy contract is suited to an online reverse auction, which is for clients investing more than $25,000 per annum on electricity and classified as a large site. For energy investment below this level, sites are classified as a small site and are priced by tender.

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Build Energy Contract Specifications for Strategic Buying

Once your site is qualified we gather the necessary information with your permission to build a specification for your site. Energy Action understands the energy retailer’s approach to their pricing, trading terms and strategic buying patterns. We know that they are able to offer sharper pricing when they can manage risk through “known load profiles”, which are developed as part of building the site specifications.

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Set Auction Date and Invite Energy Retailers

Next we work with your business to negotiate a suitable auction date, distribute your site specifications to energy retailers and invite them to participate in your auction. Prior to your auction, energy retailers will have logged in to begin building their “bids”, with some energy retailers registering their interest to participate and then bidding on the day of auction where they can see the pricing they have to beat.

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Auction Commences

The Australian Energy Exchange auctions are scheduled to run initially for 10 minutes. Energy retailers begin bidding, with bids received in the final 3 minutes triggering a 5 minute extension, ensuring all energy retailers have adequate time to prepare counter bids. You are able to view your auction live through the Australian Energy Exchange online platform. With energy retailers bidding against each other, maximum price tension is created around your energy requirements, so you can expect a competitive price as a result of the reverse auction.

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Auction Closes and Reports Developed

Once the auction has closed, the Energy Action team produce your detailed comparison reports, which are designed to help you understand and compare the bids relative to your requirements and make the most informed decision to select the best suited energy retailer and contract.

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Selecting your Energy Retailer and Signing Contracts

The option of choosing an energy retailer lies with you. Our detailed reports on the energy retailers provide all the relevant pricing & commercial information to make your choice. In most cases, there is a limited validity period on the contracts, which may mean sharper pricing, so having this information means you can act quickly. Once you choose an energy retailer, Energy Action facilitates the transfer of your contract to the energy retailer of your choice.

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