Frequently Asked Energy Questions
What is "deregulation", how does it affect me?
- In deregulated states, third party suppliers (non-utility companies) can supply natural gas and electricity to end-users. As an energy consumer, you can now choose where you buy energy from based on price or other factors through BidURenergy. Click here for a map showing the current deregulated states.
How does deregulation work?
- In deregulated states, the Public Service Commission (name of this body varies by state) has opened the state's electric and natural gas markets to competition in order to give clients the ability to buy their energy from the least expensive source. Your bill is divided into two major parts – supply and delivery. Local utility companies continue to deliver electricity and natural gas to homes and businesses. Third party suppliers can supply your account at a price lower than the utility price can supply your account. The difference between what the utility would charge and what a supplier charges equals your savings.
What is BidURenergy?
- BidURenergy (BUE) is a one-stop electricity and natural gas supply marketplace where energy suppliers blindly bid to supply your utility account. Suppliers are pre-screened, allowing only the most reputable providers to make offers. The lowest offers are available through BUE's PowerPit™ blind auction platform. BUE works with a wide variety of accounts including small and large commercial and retail operations, industrial, municipal and governmental clients.
How does it work?
- Once you have provided BidURenergy with the requested basic biographical and utility information, BUE will conduct a blind auction with participating pre-screened suppliers in your area. BUE will analyze the supplier offers to make sure they are responsive to the bid and will further negotiate with the supplier to get them down to their lowest acceptable margin. This can sometimes involve several components of the rate. Once BUE obtains what it believes is the best rate available from each supplier, you will then be able to review these offers, select your supplier and enroll in one easy process.
Am I required to choose an offer from a supplier?
- No, there is no obligation to select any of the offers presented to you by BidURenergy.
How are BidURenergy suppliers different from my utility company?
- By selecting a BidURenergy qualified supplier, you have exactly the same assurances in regards to receiving your electricity and natural gas. If the power goes out, you call the utility and they come fix it. You will continue to receive the same reliable service you are accustomed to and will in no way be penalized by your utility for switching. In fact, they encourage it!
What if my utility is also supplying my energy?
- If you receive your full energy supply requirement from the utility company, you are charged at a rate based on the prevailing cost of electricity and natural gas plus monthly adjustments including administrative charges. These costs are passed directly to you (no profit for the utility on the supply portion of the bill), the consumer. Third party suppliers can use purchasing strategies not available to the utility company, allowing them to make energy supply offers that your utility company cannot beat.
How do I benefit with BidURenergy?
- BidURenergy (BUE) works and negotiates for you to receive the best possible rates from bidding third party suppliers. BUE receives a uniform fee from its suppliers and therefore is not motivated to favor one supplier over another. All suppliers serving your area have been reviewed and pre-screened. The suppliers selected to be on BUE's auction platform are some of the biggest energy companies in the country. These suppliers must maintain a good reputation for fair business practices, good client service, and BUE's requirement to provide competitive offers.
What happens after I select an offer?
- Once you have selected an offer from our qualified supplier, BidURenergy (BUE) will negotiate any contract terms in need of amendment on your behalf. Once you execute the supply agreement with the supplier, BUE takes it from there. BUE ensures a seamless and timely switch.
Do I have to notify my utility that I selected a different supplier?
- No, BidURenergy has selected suppliers that work with your utility company to ensure a smooth transition between energy suppliers. The energy supplier will notify your utility company of your switch. You do not need to call your utility company and they will continue to deliver your electricity or natural gas to your home or business.
How will I be billed by the supplier I choose?
- In most cases, you will continue to receive a single bill from your utility company with the supply charges listed separately. BidURenergy requires that all details of the energy supplier's offer be displayed and provided to you.
What if I have a problem with my electricity or natural gas service?
- Your utility company owns and maintains all the lines and pipes used to deliver your electricity and natural gas. They are required to take care of any problems with service including downed power lines, interruptions, storms, and other emergencies. Your account will be treated identically to the way it is currently.
What if I want to go back to the utility company?
- You can always elect to receive your electricity and natural gas from the utility company. Each energy supplier is required to provide information about switching back to the utility company.
What sets BUE apart from other consultants?
- BidURenergy (BUE)has unmatched experience, reputation and credibility in the energy industry. BUE, by specifically aligning itself with certain principles and procedures, is obligated to you alone and not to the suppliers that bid on their platform. 96% of all energy consultants or brokers are tied to two or fewer suppliers. They are essentially marketing directly for these one or two suppliers. This means that there is little to no competitive pricing involved. BUE is part of the other 4%, with more than 30 suppliers approved to operate on our auction platform. BUE is so confident in its ability to bring you the best rates that you are not obligated to accept any offer if you are dissatisfied for whatever reason.
How will BUE get me the best price?
- With over 10,000 clients and growing, BUE's size serves as negotiating leverage when dealing with suppliers making a bid. Suppliers know that if they are not competitive with our clients, they will be excluded from future bids. Furthermore, by looking at each component of the rate individually, BUE ensures their clients are obtaining the best available rates for their electricity and natural gas.
Analysts negotiate rates via BUE's unique Multi-Level Rate Negotiation (MRN) process. MRN is a powerful bargaining technique used to chip away at rates to bring you the lowest prices. By evaluating a client's load profiles, load factors, capacity obligations, and other components, BUE analysts ensure that the bidding suppliers are tailoring their rates to each client.
What is a blind auction? How is that different from a reverse auction?
- BidURenergy (BUE) uses a completely blind auction process where suppliers do not know what their competitors are bidding. The uncertainty of what others are bidding generally ensures that the supplier offers its best rates. BUE spent more than a year examining the best auction method available (blind versus reverse auction). It was clear that the process that produced the best rates was one which involved suppliers bidding for a client's account, not knowing what others were bidding (i.e. blind auction process) as opposed to suppliers bidding solely against other suppliers with no reference to the actual client account being bid upon (reverse auction process).
Although there is a deadline to bid in BUE's blind auction, the account information is provided to the supplier in sufficient time to allow them to analyze and tailor their rates to a particular account. This is unlike reverse auctions, which have time frames of minutes or even seconds within which a bid must be submitted.