The eco-friendly movement is slowly gaining traction in Singapore, with more followers and attention in recent years. New green players in the electricity market include "carbon neutral electricity"- what exactly is this?
There are 3 traditional bundles in the electrical power industry- Generation, Transmission & Distribution, and Retail. The power sector has always been a nationalised one, and remains so in most parts of the free world. However many states and countries in the USA, EU, Australia and NZ have liberalised the power sector to to allow in efficiencies that ultimately benefits electricity consumers in the form as lower tariffs.
Although our nation is getting richer, those belonging to lower-income groups are feeling the pinch, with the ever-increasing cost of living, with rising utility bills, cost of food, transport fees and even taxes, just to name a few. According to SMU professor John Donaldson, approximately 10 to 14% of the local population are facing difficulties making ends meet. Also, while there are no official statistics in Singapore, according to international definitions, it can be suggested that approximately 1 out of 5 Singaporeans are living in relative poverty (with a median gross income of less than SGD 1500 per month).
Several retailers still offer a Fuel Indexed (FI) electricity price plan which propagate two broad value statements.
1. It’s good for businesses in the petrochemical, energy industry, or industries whose operating costs are tied to oil prices.
2. It allows businesses to increase operational production/output, when oil prices and by extension, electricity prices are cheaper.
A fixed rate electricity plan is one where the consumer is charged a fixed tariff in $/KWh for a tenure of at least 12 months. It is most commonly touted as a risk-free plan which provides security and stability in your monthly spend for electricity. A plan that makes budgeting easy. Let’s challenge this narrative.
Electricity can be more than just energy to power your equipment, or office for your business. Electricity consumption can provide us, as business owner or manager, much insight, obtained through trending and monitoring monthly, daily, and hourly energy consumption.