Long-term energy procurement client with over 13 years of loyal partnership and documented savings
The Challenge
One of the largest global submarine telecommunications companies first engaged with Mantis Innovation back in 2010. The local utilities default energy costs were rising steadily, and it was clear that the company needed to take action to reduce their energy spend.
The Solution
Mantis helped them negotiate better rates, navigate the supply market, and find alternative suppliers, instead of paying the one size fits all rate with the Utility. Over the years Mantis conducted competitive bidding processes, successfully executing 17 contracts.
Most recently they were looking at an 83% increase in their fixed rate compared to their previous contract rate, while they understood that the market had changed dramatically in the past 2 years, it was still hard to stomach. We suggested they look at a hybrid solution, which would spread the purchasing over the course of their three-year contract and allow them to take advantage of various price drops. This also allowed them to lock in all components of the fixed adder, such as renewable portfolio standards, capacity, ancillaries, etc., which have all increased since then. This strategy has already led to just shy of 2.5 million dollars in savings vs the utility in the first six months of the contract.
Additionally, Mantis has helped this company with billing issues, market monitoring, solar feasibility, and has truly been an energy partner for over 13 years.
What is a reverse auction?
A reverse auction is a procurement method in which the traditional roles of buyer and seller are reversed, meaning there is only one buyer with many potential vendors.
These types of auctions have been employed by both government entities and the private sector for decades, offering a proven method to enhance the procurement of goods and services. Specifically, energy reverse auctions offer a transparent and competitive marketplace through which businesses and secure new energy contracts. Suppliers offer an identical product but can compete on their willingness to supply it at varying costs.