UK industry could be paying out up to £741million too much for its total electricity needs every year according to research by online energy buying service, Energy Shark. The company has launched its new electricity reverse auction service on its website alongside the existing gas purchasing facility. There are around 30 suppliers of electricity in the UK alone for commercial and industrial use, and Energy Shark believes that it is this current saturation of the marketplace that can make it difficult for companies to obtain a competitive quote. Many energy buyers have traditionally either had to rely on information from salesmen, use a costly procurement agent or make a decision based on instinct.
Energy Shark's electricity buying service aims to remove the lengthy process by offering a 'Dutch' style blind auction, where suppliers anonymously outbid each other for a company's business. The process is free for buyers, allowing them to walk away if the ideal quote is not found. Companies can provide their usual tender and Energy Shark will input and process the information to initiate the e-mail based auction. The service allows companies to select to include or omit certain suppliers or stipulate a quantity of 'renewable' energy to meet their Climate Change Levy agreement.