Energy Procurement Blog

If you are in a deregulated state (click here for map of deregulated states) and consume an above average volume of energy, you HAVE BEEN CALLED by either a third party supplier or broker. In fact, you have probably been called MANY TIMES, maybe even by us! That is because deregulation has opened up a new industry geared at helping consumers understand the complexity of the market and make the right decisions...

Reverse auctions are seen as providing a new tool for companies that will help them shave expenses and better document their procurement transactions. If I were a procurement professional, I'm sure I would like reverse auctions because:

• It cuts time and costs of both the product and the process (savings 5 to 15%)
• Companies focus on lowest cost and best value supply relationships; eliminates bias and opens bidding to new suppliers
• Transaction information is standardized, organized, time-stamped and trackable; provides an ability to confirm pricing and leverage previous agreements...

I just read a good article today in the July/August 2011 edition of EnergyBiz, headlined "Fast and Slow but Forward", regarding the direction of electricity deregulation.  The article addresses the good, the bad and the ugly issues that have faced deregulated markets over the past 10 years.  In short, there are no new deregulatory efforts going on at the present time. This is, in part, due to the bad press regarding retail energy prices increasing...