, Singapore
3 views

Firms slash electric bills as Singapore launches live auctions for packages

On average, savings can hit 30% off the regulated tariff after live auctions were launched.

The operator of Singapore’s wholesale electricity market, Energy Market Company (EMC), wanted to cut the time it took companies to find their electricity retailer from one to two months to just 15 minutes when it launched its procurement portal PowerSelect in 2018.

Since the launch of PowerSelect, EMC has successfully conducted over 50 live auctions for businesses in the industries of manufacturing, transportation & storage, accommodation, and food services, shared Liang Ching Tan, senior vice president for business development at EMC.

“On average, these businesses enjoyed savings of about 30% off the regulated electricity tariff (based on prevailing tariff rates at time of auction) when they procured electricity through PowerSelect. Compared against the businesses’ reserve prices (or starting bids for the auctions), the amount of additional savings ranged between 3% and 15%,” he said in an exclusive interview.

PowerSelect allows business to shortlist their retailers based on retailers’ packages as well as their track record of performance. After the round of shortlisting, the retailer that offers the most competitive price in PowerSelect’s 15-minute auction ultimately wins the contract.

He recalled a customer in the Food and Beverage sector which conducted a Live Auction for a Discount Off Tariff plan. The live auction allowed the customer to secure a final discount of 28% off the regulated tariff, which was higher than the 25% rate it had with its incumbent retailer.

“Most businesses prefer Fixed Price Plans as there is certainty in their electricity spending which is helpful for budgeting purposes. They usually compare 12- and 24-month contracts, and decide based on the prevailing fixed rates. In the current market situation, 24-month fixed rates are lower for businesses,” Tan said.

Most of the time, the electricity procurement process is still very manual and time-consuming – the businesses contact electricity retailers individually for quotes, and then try to make sense of the various electricity packages which often come with detailed and complex terms and conditions.

PowerSelect condenses the procurement processes in its platform by housing data from the wholesale and futures electricity markets, having an in-house team assist businesses in understanding and navigating the contract terms and conditions of the different electricity retailers and advise them in areas like the reserve price (or starting bid) for the auctions as well as the contract durations.

For the future, EMC is looking to expand the PowerSelect platform as it has observed that businesses are increasingly looking for other energy-related products and services. “Whilst there were plans to roll out additional, value-added services on PowerSelect at later stages, we intend to bring forward our plans to better support our customers. We are in the process of evaluating our options for PowerSelect,” Tan said.

With the consolidation of Singapore’s retail market, the EMC is also expecting more differentiated packages from the remaining retailers like green electricity packages as they gain more experience with the OEM, and as consumers’ awareness level and expectations increase over time.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Asian Power in your inbox

Danish energy company Ørsted launches expansion in Vietnam

This comes on the back of Vietnam increasing renewable energy to 30% by 2030

South Korea launches its largest 2 GW solar capacity tender

The country is expected to allocate 4 GW of solar capacity in 2021 across two tenders.

ACWA to build largest wind power plant in Central Asia

The company will construct the 1500 MW wind power project in Uzbekistan.

India’s Tata Power contemplating $473m IPO for renewable energy business

It initially planned to seek a partner to invest in its green assets.

China’s solar capacity installation crashes by 82% QoQ in Q1 2021

But increased by 35% YoY compared to Q1 2020.

India’s JSPL sells coal-fired power business for $400m to Worldone

This move aims to reduce the company’s debt and carbon footprint by almost half.

Japan authorizes operations of three ageing nuclear reactors

This is the first time reactors older than 40 years are approved to restart.

India’s NTPC launches tender for 600MW of wind and solar projects

Developers can compete for at least 50 MW to 600 MW in 10 MW multiples.

Here’s why the last dirty fuel project in Japan was scrapped 

The country recently pledged to cut down greenhouse gas emissions by 46% before 2030.

Singapore's Sunseap eyes expansion in Japan after latest Series E funding

The company earned an undisclosed amount from several new Japanese investors.