Independent Hotel Group

Industry: Hospitality

Location: London


This exclusive independent hotel group had settled their previous contracts in 2021 and as such avoided the high increases seen in 2022. However, they were not expecting the size of the increase of their renewal rates from their incumbent energy supplier, which was showing a >310% increase.


1. Assessment and Analysis

Mindful Energy carried out an initial desktop assessment of the client’s current energy consumption and contract terms. Consumption had stayed consistent, but several of the sites were on different supply contract end dates.

2. Reverse Auction Methodology

Mindful Energy deploys a Reverse Auction Methodology for sourcing the cheapest gas & electricity supply contracts. This procurement process consists of the following 5 stages.

  1. Requirements capture and Invitation to Tender (ITT) creation.
  2. The ITT is sent to all appropriate suppliers at least 10 working days prior to an auction.
  3. An Initial Auction Tender (IAT) date is scheduled date with the client. The IAT is a live pricing exercise, and all suppliers can bid and rebid between 9am -1pm on the date of the auction. The IAT has the following aims.
    • To provide an accurate steer on the potential renewal budget.
    • To assess the premium for purchasing renewable energy.
    • To cleanse the portfolio and identify any pricing errors or credit issues.
    • To give the client time to carry out any internal governance or sign-off processes ahead of formally signing the supply agreements.
  4. Subject to the clients’ requirements and market conditions, a Live Auction Tender (LAT) date is scheduled, which is typically the final auction prior to signatory.
  5. Following the final LAT, an Auction Summary Report that includes our recommendation is sent to the client for review, and the appropriate supply contracts are subsequently signed.

For a more detailed description of the reverse auction process, please click here.
Independent Hotel Group Flow chart

3. The Results

Following the Initial Auction Tender (IAT) and our guidance on market intelligence and the options available to them, the client decided that they wanted to secure the lowest-priced 12-month offer as soon as possible.

Mindful Energy scheduled a Live Auction Tender (LAT) on a date suitable for the client, requesting the cheapest 12-month offers only. A whole of market invitation was sent to all appropriate energy suppliers requesting these terms, and each supplier bid and rebid between 9am and 1pm on the auction day.

7 electricity suppliers submitted bids, with 4 suppliers submitting rebids, all lower than their initial bids. The largest spread between first bid and final bid was 8%. The best priced off on the day was 27% lower than the original renewal offer, albeit approximately 8% of this was due to the wholesale market falling.

The client subsequently agreed and signed the most suitable supply contract, and Mindful Energy managed the go live process to ensure the new rates were implemented in a timely fashion.

Additionally, 2 bridging contracts were put in place with the winning supplier to ensure all meters were on aligned start and end dates going forward.


"Mindful Energy were responsive and knowledgeable, and the reverse auction appeared to do its job in getting us cheaper rates." - Assistant Procurement Director

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