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Why our tender design achieves the Lowest Possible Energy Prices

 

We are Totally Independent

We accept no payments or commissions from any of the retailers.

We tender to all Licensed Retailers

We tender to all licensed retailers who offer fixed priced contracts rather than those who transfer unhedged risk to end users.

The importance of researching the whole market cannot be understated; and once we have all of the offers the choice of retailer is yours.

Our Unique Tendering System

Our tenders are designed to maximise retailer interest, minimise retailer risk margins and drive competitive tension. We provide all of the relevant information required to secure the lowest possible prices, and make it easy for the retailers to respond.

We have unnecessary risk margins removed

The National Electricity Market (NEM) covers NSW and the ACT, QLD, SA and Vic. It is regarded as one of the most volatile commodity markets in the world. For this reason, energy retailers use various financial instruments to manage their risks.

Our tenders include all of your historic load shape data. We also model your future load, which is vital to remove retailer margins for risks that may or may not be real.

We run a blind Dutch Auction to the bottom of the market

Once we have retailer interest, we drive to the lowest possible prices with a blind Dutch auction. This strategy has been proven to increase competition. There is no prize for coming second, and when retailers truly don’t know what prices they have to beat, they are more likely to offer their lowest possible price following several rounds of negotiations.

All offers are entered into a like for like analysis

We empower you with an independent analysis of all offers after full retailer competition. You are then in a stronger position to make an informed decision. This makes it easy for you to choose your Retailer of Choice and the length of contract.

We have no Conflicts of Interest

One of the biggest conflicts of interest is energy retailers paying brokers or consultants commissions. The reason we don’t accept commissions are:

  • All commissions in the large market are added to the rates you pay
  • The larger the load the bigger the commission
  • The higher the price the higher the commission, so there is a disincentive to drive to the lowest price.

Access to Current Market Information

By far the biggest driver of when to run a tender is where the wholesale prices are and potential future risks. For this reason our experienced and qualified staff research the market on a daily basis. If you haven’t already done so, look at the Market Information pages. We upload market news on issues that will impact pricing. We graph hedging and spot market prices in each region of the National Electricity Market (NEM), as well as prices in the WA Electricity Market (WEM).