A Deeper Dive into Reverse Auction
The State of Texas State Legislature approves procurement auctions when purchasing utilities like Electricity and Natural Gas. Many state and city agencies follow these guidelines more accurately and efficiently. Auctions always provide the best price. The contract term can cause the best price to become the worst; so be careful.
Electricity is a commodity that is produced when an armature rotates between two north pole / south pole magnets and produces field power on a connected shaft. Every rotation, roughly 10 per second this is called a cycle and there are 60 of these in a minute, thus 60-cycle power. Truth be known, some of this power is cleaner than wind and solar and is 98% of our total production demand with no permits on the books to build more, just wind and solar which is dangerous for the health of the grid. Electron prices change several times every day and are affected by supply and demand, not to mention the delivery of the produced electron you are going to purchase. Time is expensive. Sometimes short-term contracts are less expensive, and other times that flips and shorts are more expensive but having a contract is always less costly by 20 – 30%.
AFI Consulting has eliminated the pain of dealing with day-to-day pricing from different brokers through our systematic reverse auction platform combined with the GEPA. As soon as you receive a price, it changes, so you are looking for good information, not price because the price is relative to the information you obtain. To be frank, don’t be fooled by a fool, it is not about the price of the KW.
There are over 100 licensed electricity retailers in the United States, Retail Electric Providers REPs’. There is only one Grid, it is impossible to have one company deliver “green energy or electricity,” as they may only produce green through solar or wind they still have to mix it up on the grid. For example, ONCOR, Texas New Mexico Power and Light, AEP, Center Point, etc., are among the seven utilities in Texas. Because they are all regulated according to regions where they have assets, the charge for electricity delivery will vary according to where your meter(s) are located (building, etc.). These companies are the lines, poles, pots and metering equipment and you don’t have a choice, if you live in their area, you will enjoy their price and service.
The AFI GEPA combined with the Mantis real-time bidding auction works effectively and saves your enterprise thousands of dollars in man hours and it is fun too. It also guarantees the best contract rates and terms available in the market. This is important because fine print in a contract can be catastrophic if not carefully considered. Pitting all approved and invited suppliers against each other to bid on your load profile in a timed event that lines up with market indicators is our job and we are good at our job!
Keeping in mind the specific market price window specifically from Natural Gas Markets as well as demand indicators set the time allotment so we prepare but sometimes have to reschedule because it is about your best deal. By performing the critical GEPA Enrolment tasks and proper education, we ensure our customers don’t waste their time.
The Auction lasts less than an hour and again is fun, I have had many board room bets as the suppliers race to the lowest price within the preset terms. And when complete the Auditable Report with the contract is delivered in a nice package.
AFI Energy and Mantis Innovations believe an educated customer is a happier customer. Our approved process attracts the best REP’s (Suppliers) and they are glad to pay us for our GEPA and Auction process you set back and enjoy the process for once.