How to put your energy prices under the hammer?

Written by John Huggart, CEO Energy Action

  Business can now put their energy prices under the hammer




Every December customers and retailers face a “cliff face” when the majority of large market or Commercial & Industrial supply agreements expire. A commercial user is typically defined as spending more than $25,000 per annum on energy.  If you don’t take action, the lights will remain on, however you may be at the mercy of sharply increased default rates, or a premium “auto renewal” rate from your current retailer. Your loyalty is not rewarded, and your inaction can certainly cost you!

Time is not necessarily on your side, the idea of ‘treating them mean and keeping them keen’ may not work out in your favour, because retailers find planning more attractive. An energy retailer’s fortunes for the year ahead are secured by balancing their physical and synthetic generation portfolio with a diverse quality customer base.  Whilst I know most businesses have already entered into an agreement, just last week we spoke to a “household name” business who had not yet secured their 2020 retail supply agreement for electricity.

Whilst most businesses do plan ahead, it’s Christmas and we are all busy – it’s human nature for things to slip through the cracks. Our Senior Leadership team and I started thinking about innovative ways we could help our clients and the broader business community navigate this challenging issue.

The solution was to leverage Energy Action’s revolutionary reverse-auction platform, the Australian Energy Exchange (AEX) that allows retailers to bid for our clients’ energy contracts. We are launching an ‘Auction Blitz’ for energy that’s inspired by the online retail flash sales like ‘Click Frenzy’. Registrations have just opened and we are encouraging businesses to jump on and register their details to participate.

We have the marketplace, underpinned by cutting-edge technology, and will be inviting retailers to put forward their best offers for our clients’ energy contracts. We already know that the AEX delivers an average saving of 6.8% from the first to last bid. We anticipate the large volumes that the Auction Blitz will bring, should compel retailers to pay attention to the highly active marketplace we are creating and take action to compete for our client’s business. We expect this to translate into offers for participating clients that better align with their individual circumstances and harness competitive tension to deliver sharper rates.

So how does the ‘Auction Blitz’ work?

Rather than a single aggregated energy purchase (sometimes referred to as a Group Buy), Energy Action will run a series of individual auctions for each registered client. Retailers will know it’s coming and be ready to bid for your business and are able to build their bids ahead of the action. All you need to do is be ready to accept an offer once the auction closes.

The process is simple, transparent and effective. An auction typically runs for 10 minutes with 16 competitive retailers invited nationally – including the leading commercial and industrial energy suppliers in Australia. The team have developed a number of Auction Blitz FAQs that might help answer questions businesses may have.

Give yourself the best chance of securing competitive energy rates, and discover why our customers love the Energy Action auction process with an outstanding, and enviable Net Promoter Score of +50. Make a good decision and register today for the Auction Blitz.