Energy Rate Saver Dash - Frequently Asked Questions (FAQs)

 

What is an Energy Rate Saver Dash?

We will put our revolutionary auction platform, The Australian Energy Exchange (AEX) to the test with a dedicated dash for businesses to take advantage of the downward pricing trend. Participating businesses will have their energy auction run during the Energy Rate Saver Dash period to capitalise on group momentum and we take care of the rest! All you need to worry about is signing off on your result – the retailers will receive plenty of notice to get prepared for the big event!

Nationally, we have over 20 retailers we are inviting to the pricing event and they will be ready to bid for your business.

From first to last bid, the AEX Platform delivers an average of 6.8% in just ten minutes!


 

   

Why is now a good time for an Energy Rate Saver Dash?

Retail electricity prices for Commercial & Industrial customers have continued to decline and future prices remain in a downtrend. All states are at, or approaching, 2-year price lows. Price backwardation remains in excess of $20-$30/MWh from 2019 to 2022. Major reductions are noted for Calendar 2021. 2023 futures have also begun moving downwards but lack trading volume liquidity. We expect 2023 prices to reduce further. All the signs are there to lock in great pricing, so our Energy Rate Saver Dash timing is designed to capitalise on this market trend.


 
 

Why should I get involved?

If you have a contract due to renew in the next 9 months - you need to act fast before pricing starts moving upwards! An auction is one of the fastest way to secure the best deal taking advantage of maximum competition with minimal effort from you! The best part is you still get the final decision on which offer you choose!

 

 

Why is this different to a group buy?

The Energy Rate Saver Dash differs from a group buying event because it maximises the benefits of group power, but maintains the benefit of tailored results. The intention is for a high volume of clients being directed through the platform in a short 2-day period. However, each auction is individual, so every client benefits from the pricing being directly related to their load profile and contract needs. It also means there is no risk of pricing being pulled or reviewed under clauses relating to all parties needing to sign for pricing to remain valid. You are simply responsible for signing off on your own contract secured through the auction's results.

 

 

Sounds too simple - what's the catch?

The greatest challenge clients face is being ready to sign off on their outcome quickly. The retailers truly put their best prices forward, which means they cannot offer long validity on the deals. If you commit to an auction, you need to be ready to take a deal. The decision of who you choose is completely up to you, but time is of the essence!

 

 

Why is the Australian Energy Exchange so successful?

In plain terms, our reverse auction platform, The Australian Energy Exchange, is effectively a marketplace where large businesses, spending over $25,000/year, go to buy their electricity. It’s a successful marketplace because energy retailers are very active and engaged with it. For any marketplace to work, there needs to be plenty of buyers and sellers keen to do business. Energy Action pioneered the concept of reverse auctions for energy in Australia almost 20 years ago. We are just creating the opportunity to bring everyone together at a critical period in the energy industry. 

 
 


How does an Auction work? What's the process?

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.