Singapore: New plans serve cheaper power sunny side up

Singapore: New plans serve cheaper power sunny side up

Shopping for customised electricity plans has been an option for businesses
for the past year or so, but not many have decided to make the switch away
from SP Services.

As at the end of the third quarter of last year, only about a third of the
35,000 eligible commercial and industrial consumers have chosen to do so,
latest figures from the Energy Market Authority show.

Businesses with an average monthly electricity usage of at least 2
megawatt-hour (MWh or 2,000 kWh) - a monthly power bill of about $450 - can
choose an alternative to SP Services from July 2015.

Before that, only consumers which use more than 4MWh of electricity monthly
were eligible.

On the low take-up rate, Mr Julius Tan, manager of energy retail at
home-grown electricity retailer Sunseap, said some may worry that
electricity supply may be less reliable with a different retailer.

But he said electricity supply will still come from the grid. "The only
difference is that they are paying an electricity retailer that can offer
them plans customised to their needs," he said. This is similar to how
mobile phone users choose price plans from various telcos.

HASSLE-FREE CLEAN ENERGY

You don't need a roof of your own to get solar electricity, and a lot of
electricity consumers like to get clean electricity.

Customised price plans, for example, will allow consumers to power up their
premises with a mix that includes solar energy without the need to install
and maintain their own solar panels. This may appeal to eco-conscious
consumers and those who want to save money as electricity generated in part
by solar energy is cheaper than the regulated tariff.

Last month, Sunseap started offering eligible consumers a GoEco price plan
which guarantees that a portion of electricity used will come from the sun.
Its website says doing so can cut electricity bills by 20 per cent.

As a gauge, it costs about 20 cents for 1kWh of electricity from SP Services
at the regulated tariff.

Sun Electric, another local solar electricity retailer, is also offering a
variety of price plans that allows eligible consumers to tap varying amounts
of solar energy, resulting in savings of between 15 and 20 per cent.

"You don't need a roof... to get solar electricity, and a lot of electricity
consumers like to get clean electricity. All of our products are also
cheaper than the tariff," said Dr Matt Peloso, Sun Electric chief executive.

Logistics firm Ninja Van has made the switch from the regulated tariff. It
subscribed to Sunseap's GoEco plan for one of its two facilities last month.
The other facility will also be on the same plan from next month.

Mr Pang Sing Yang, vice-president of strategy at Ninja Van, said of the
switch: "We believe in supporting other local start-ups and want to play our
part in environmental conservation by using a form of renewable energy. We
also enjoy some cost savings."

Next year, 1.3 million households can also get to benefit from this
flexibility when the electricity retail market is fully open to competition.

Ms Geraldine Tan, general manager for retail at electricity retailer
PacificLight, which also offers renewable energy, said: "With the
electricity market opening up next year, the price of solar continuing to
fall and the availability of hybrid solutions, more customers in Singapore
will be able to pledge their commitment to renewable energy at a competitive
price point."

Government agencies are also looking to tap savings without having to
install their own systems.

Under the Government's SolarNova scheme, which aggregates solar demand,
agencies such as the HDB provide rooftop space for firms to install the
panels. In return, town councils enjoy discounted electricity rates.

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Link to Original Article:
http://www.straitstimes.com/singapore/environment/new-plans-serve-cheaper-po
wer-sunny-side-up

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com