Reverse Energy Auctions
When the market needs to compete for your business — openly and in real time.
Reverse energy auctions put multiple suppliers in direct, transparent competition for your contract. For the right buyer, it's one of the most effective tools for driving price discovery and supplier accountability.
Is a Reverse Energy Auction Right for You?
We'll be direct: reverse auctions are not the right tool for every buyer. They work best in specific situations:
Municipalities and public entities with procurement requirements that demand transparent, documented competitive processes
Large commercial accounts with significant load where the auction dynamic produces measurable savings
Buyers who have found themselves in a frustrated spot, after inviting multiple brokers/REPs to bid on their load and want a “reset” or a structured process that removes intermediary influence from the equation
Organizations with internal stakeholders who need to demonstrate that pricing was obtained through a rigorous, documented competitive process
For most commercial accounts — especially those where market timing and an advisory relationship matter more than a one-time competitive event — a traditional procurement approach typically serves better. We'll tell you honestly which one fits your situation.
In many cases, the timing of a decision matters more than the process used to gather bids, and a well-timed traditional procurement will outperform a poorly-timed auction every time.
What This Service Is
A reverse energy auction is a structured, real-time bidding event in which multiple energy suppliers compete simultaneously for your electricity or natural gas contract. Unlike a traditional bid process — where suppliers submit sealed quotes that are then compared — a reverse auction is live and transparent to all bidders. Suppliers can see competing bids and adjust their offers in real time, which drives prices down through direct competition.
We facilitate these auctions through a dedicated platform purpose-built for energy procurement.
How It Works
Pre-Auction Setup: We define the contract parameters — term, structure, delivery points, any special requirements — and qualify suppliers to participate.
Supplier Invitation: We invite a vetted group of suppliers qualified to serve your account. Minimum participation thresholds ensure genuine competition.
Live Auction Event: The auction runs for a defined window — typically 30 to 60 minutes. Suppliers bid in real time, can see competitor offers, and may reduce their price to stay competitive.
Award: You review the final bids and award the contract to the supplier of your choice. You retain full discretion — the lowest bid is not mandatory.
Frequently Asked Questions
How is this different from just getting multiple quotes?
In a traditional multi-quote process, suppliers submit their best offer without knowing what others are bidding. In a reverse auction, they know — and that transparency creates real-time downward price pressure. That's the mechanism.
How many suppliers typically participate?
It varies by account size and market conditions. We target a minimum of three to four qualified participants to ensure meaningful competition. It’s worth noting that a significant load size is generally required for a healthy size group of retail supplier participants.
Can we still use Alden as an advisor if we do a reverse auction?
Yes. Our role shifts from primary broker to auction facilitator, but we're still involved in structuring the event, qualifying suppliers, and helping you evaluate results.
Are reverse auctions used for natural gas as well as electricity?
Yes — the platform supports both commodities.
What if the auction doesn't produce pricing we want to accept?
You're under no obligation to award the contract based on auction results. If the market doesn't produce pricing that makes sense, we'll advise on next steps.