Fixed Price Contracts

The Reverse Auction Methodology: Sourcing the lowest price

Reverse Auction Methodology is the process of creating a market tension between two or more suppliers, resulting in a bidding war that erodes competing supplier margins, and ultimately sourcing your business the cheapest price.

As each supplier bids and rebids, it encourages other competing suppliers to submit further bids, driving the price down to the lowest level possible.

The below graphic depicts how this typically works for gas and electricity supply contract negotiations.

Reverse Auction

The Initial Auction day

This auction acts as a dry run while providing the following benefits;

  • Provides you with an accurate renewal cost for your potential new budget
  • Enables you to assess any “green” premiums
  • Enables Mindful Energy to iron out any data/portfolio discrepancies ahead of time
  • Enables the customer to process any internal governance processes ahead of signing the renewal contract.

Final Auction Day

  • Your signatories will have had time to prepare ahead of signing the final contracts.
  • Signature is subject to market conditions and a favourable buying environment
  • We index link the market prices to ensure supplier margins remain consistent with the Initial Auction Day pricing

If you are interested to see how much time and money the Reverse Auction process can save your business, please click the below button.

What are the advantages of using a reverse auction methodology?

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    Cost Savings

    One of the primary benefits of a reverse auction is the potential for cost savings. Suppliers compete in real-time to offer the lowest price for your gas and electricity supply contract. This competitive bidding process drives prices down, resulting in more favourable rates for your business.

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    Reverse auctions streamline the procurement process. They are typically conducted online, which eliminates the need for time-consuming negotiations and back-and-forth communications with suppliers. This efficiency saves both time and resources.

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    Access to a Wider Supplier Pool

    Reverse auctions attract a broader range of suppliers who may not have participated in traditional procurement processes. This increased competition can result in more competitive pricing and better contract terms.

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    While price is a significant factor in reverse auctions, it's not the only consideration. Suppliers can also compete on contract terms, service levels, and other factors that are important to your business. This allows you to select a supplier that aligns with your specific needs and priorities.

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    Flexibility in Contract Length

    We offer a range of contract lengths to suit your business needs. Whether you prefer short-term predictability or a longer-term strategy, we customize the contract duration to align with your goals.

In summary, using a reverse auction methodology offers a structured and competitive approach to procurement, allowing you to find the best-fit supplier and contract terms for your organization's energy needs.


Budget Certainty

Fixed price contracts empower you to plan your finances accurately, as you'll know exactly how much you'll be paying for energy throughout the contract period. This stability makes it easier to allocate funds for other business initiatives.

Financial Planning

With predictable energy costs, you can allocate your resources more effectively. This allows you to invest in growth, innovation, and other strategic initiatives that drive your business forward.

Risk Management

Energy market volatility can catch businesses off-guard, but with a fixed price contract, you're shielded from sudden price spikes. This risk mitigation strategy ensures that your profitability isn't compromised by external factors.

Peace of Mind

Let us handle the complexities of energy procurement while you focus on core business operations. You'll have peace of mind knowing that your energy costs are managed, allowing you to concentrate on what you do best.

Why Choose Mindful Energy for Fixed Price Energy Procurement?

At Mindful Energy, we combine our industry expertise, market insights, and personalised approach to offer you the best possible energy procurement solutions.

Our team of experts takes the time to understand your business's unique energy requirements, allowing us to tailor a fixed-price contract that aligns perfectly with your goals. With a focus on transparency, reliability, and cost efficiency, we are your trusted partner in navigating the complex energy market landscape.

Case Studies

Eskimo Ice / Ice Club has been manufacturing and distributing packaged ice across the UK and Europe for over 40 years. Having secured rates not long after the energy crisis, Ice Club were keen to ensure they were employing the most appropriate risk management strategy to maximise profitability of the business going forward. Given the nature of their business (ice production), demand is highly dependent on the weather and therefore energy consumption forecasting is challenging. As such, if the correct contract terms are not in place, there is a risk of breaching supplier Take or Pay clauses. As a forward thinking business, they were also keen to become more sustainable, and procuring renewable energy at a premium was acceptable, subject to the level of the premium.

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When Mindful Energy started working with Tinklin Springall Solicitors (TSS), TSS were using both gas & electricity across a number of sites, with some meters on out of contract rates. Following the energy crisis, TSS had (sensibly) declined to contract at very high rates, and were unsure when was a good time to resign a new supply contract. Additionally, there were a number of different contracts with different supply contract end dates, increasing the contract administration burden.

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As a growing business Dart and Partners (Dart) had inherited energy contracts as they acquired new offices. This resulted in supply contracts with different energy suppliers, on different contract end dates, creating an unnecessary administration burden. Additionally, it was challenging for Dart to unsure they were getting the best energy deals due to the different contracts they had in place.

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This prestigious golf course came out of a long-term contract in the months leading up to the energy crisis in 2022. Their consultants at the time were recommending a 36-month supply contract, with an average unit rate of 93pence per kWh, not including the benefit of the relevant government schemes available at the time. They reached out to Mindful Energy to assess their options.

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Our client is a group of large care homes where heating and lighting are key energy consumption drivers due to the nature of their business. They have invested heavily in energy efficiency initiatives but increasing energy prices was putting serious pressure on their business model. They had traditionally always purchased fixed priced supply contracts, but current rates were unpalatable. They were keen to look at alternative purchasing methodologies.

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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.

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You can do so by emailing, calling us on 01442 504049 or use the link below to complete our contact form.

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