5. Shipping Company tells Incumbent Supplier to Ship Out
After using the reverse auction platform to purchase natural gas and electricity in multiple other markets, a long-time World Energy customer with national operations needed to purchase electricity in California. The customer went to auction seeking bids on a variety of fixed and indexed products. During the auction event, the customer’s incumbent supplier attempted to circumvent the auction process by directly contacting the customer to offer pricing for a different index product than what was offered via the auction Knowing the value of the reverse auction platform in driving competitive bidding, the customer rejected the offer and requested that the supplier come to the auction platform with their offer. World Energy quickly created a new auction event with the new index product structure. In competitive bidding, the incumbent supplier dropped their index adder price by 30% from their initial offer. In the end, the incumbent wasn’t able to hold on…another supplier offered an index adder price that was 50% lower than the initial offer from the incumbent. Result: The customer received outstanding savings due to World Energy's ability to quickly adapt and expand the product offering and by insisting that all suppliers bid via the auction platform. |
