Energy costs have historically been one of the most unpredictable budget categories in the planning process, particularly when viewed beyond a current contract term or fiscal year. Retail energy markets challenge even the most savvy energy professionals. With proposals ranging from fixed to variable pricing and a variety of delivery terms designed to protect suppliers from delivery risks, retail transactions are difficult to evaluate and compare. Given typical contract terms of one to three years, it is important to select the right supplier at the lowest price and hold them to the highest performance standards.
Bringing 25 years of experience to the table, PRX Energy provides the experience and market insight necessary to:
- Develop pricing strategies that meet budgetary expectations
- Determine the optimal deal structure
- Leverage contract and price negotiations with suppliers, developers and performance contractors
PRX Energy structures retail energy transactions that properly balance cost and risk factors to meet your needs using the following proven best practices:
- Up-front assessment of needs to determine the products and services that are required,
- Well-defined RFP package that forces suppliers to provide proposals that are consistent with defined needs and easily comparable
- State of the art procurement platform provided by Procurex supporting online and transparent RFPs and reverse auctions
- Robust analysis of offers that highlights benefits and risks to ensure the right award decision
Case Study
PRX Energy, working with a consortium of colleges in Indiana including 32 Ivy Tech Community College campuses, conducted a competitive reverse auction for natural gas supply generating more than $500,000 in savings on an annual basis. Over 8 suppliers provided quotes using the Procurex reverse auction platform with the winning supplier reducing their price quote multiple times to secure the award. PRX Energy will manage the supplier’s performance, monitor invoice charges and evaluate market conditions for opportune times to re-compete the group’s requirements and manage costs within budget expectations.
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