In an eBay-like environment, energy suppliers compete for hospital business
Hospitals struggling with higher prices for electricity and gas, exacerbated by rising usage from energy-gobbling technology, may have a new option to manage those costs—a reverse energy auction.
The auction requires energy suppliers to offer contracts in a quick, competitive online session similar to eBay, in contrast to the relatively slow process of issuing requests for proposal on paper and waiting for the bids to come in. Proponents say the auction pushes suppliers to offer better prices than they would otherwise.
Energy auctions, which have been used widely by government agencies, are now being offered to health care facilities in the context of going green. The idea is to either buy contracts that include renewable, “green” energy sources, or use the savings from the auction process to support environmentally sustainable policies throughout the facility.
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