The best way to purchase power as a business customer in Singapore is to procure it at a plan derived from wholesale electricity prices (WEP). Primarily because of the unique characteristics of the National Electricity Market of Singapore (NEMS). Also, the WEP is essentially the cost price of electricity for all retailers, and procuring electricity on this cost plus basis is the cheapest and most transparent option possible to the consumer.
The National Electricity Market of Singapore (NEMS) has some unique characteristics, that presents the everyday electricity consumer advantageous opportunities. Compared to many other liberalised markets in developed urbanised cities, the Singapore market is presently relative stable. Here is why.
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.