What it means

In a deregulated electricity market, which covers most of Texas and parts of roughly a dozen other states, the business buying power chooses its retail supplier, while the local utility continues to own the wires and deliver the electricity. Procurement is the process of requesting offers from those suppliers and selecting a contract.

A reverse auction is one way to run that process. Instead of collecting a single quote, qualified suppliers bid against each other for the same load over a set window, and prices move down as they compete. Every bid is structured on identical terms, so the comparison is like for like rather than one supplier’s quote against another’s assumptions.

How the process works

1. Usage is assembledTwelve months of billing and, where available, interval usage data describe the load being priced.
2. Suppliers are qualifiedOnly licensed retail providers able to serve the load and credit profile are invited.
3. Bids are collectedSuppliers submit pricing for the same term lengths and structures, so results can be compared directly.
4. Terms are reviewedPrice is one line of a supply contract. Bandwidth, pass-through charges, early termination and add/drop language all affect what you actually pay.
5. A contract is signedThe buyer chooses the winning offer and the supplier takes over billing on the next meter read.

Our role

Radiant Energy Partners runs competitive electricity procurement for its clients, including reverse auctions and supplier negotiations, and manages contracts over time rather than at a single point of sale.

Start with a free bill review