Reverse energy auctions – Do they really work?

Reverse auctions are an energy purchasing gimmick.  Energy companies that follow this business model have suppliers bid against each other in a declining auction to serve a customer’s energy load.   This allegedly produces the lowest possible price.  We do not think reverse auctions are the best way to get the lowest energy price.  Most suppliers would agree with us on this point.  Reverse auctions are fundamentally flawed for one main reason…by their very nature they can only differentiate suppliers based on price.

Any competent energy partner will evaluate important factors like supplier contract terms, counterparty risk policies, published ethics policies, customer service, and past business dealings when evaluating offers.   Entering into an energy contract based solely on price makes as much sense as doing the same when buying a house.

Reliable Energy removes the blinders and takes all variables into consideration.  When doing this, the auction framework collapses in on itself.