Tuas Power's PowerFlex deal for SMEs
Straits Times, 20 April 2004
"The PowerFlex contract serves to cap the maximum price of electricity sold to selected customers at 17.5 cents per kilowatt-hour until 2006."
By HUGH CHOW
SMALL companies may benefit from a new deal offered by Singapore's No. 3 power supplier, Tuas Power, which limits the effects of lobal oil price increases yet alows price reductions to be passed on to these firms.
The PowerFlex contract serves to cap the maximum price of electricity sold to selected customers at 17.5 cents per kilowatt-hour until 2006.
However, the rate is also reviewed every three months and may be lowered to reflect any reduction in the price of oil used to fuel power generation plants on the island.
Standard fixed-price contracts which typically last one year have already been popular with small businesses which have tried to limit their power bills as continuing instability in Iraq sends global oil prices to 14-year highs.
These consumers are allowed by regulators to buy electricity directly from power generating firms such as Tuas Power, PowerSeraya and SembCorp Cogen.
The Electricity market's "Big Bang" arrived on Jan 1 with the low-key liberalization of the $2.2-billion-a-year domestic energy market as a first step towards eventual full competition.
However, the new pricing framework has so far offered greater benefits to larger power-users - such as manufacturing firms - than to house - hold consumers.
Businessman Daniel Yeo said PowerFlex was a great idea for some businesses. The comic book seller, who won a Spirit of Enterprise award last year, runs 15 retail outlets island wide.
Though power forms only a small percentage of the cost of running his business, Mr. Yeo could see the benefits for big power consumers who can negotiate rates directly with power suppliers.
"It will be very important to people running factories and small-scale manufacturing plants," he said.
Some small businesses have complained that oil price-driven volatility makes business planning difficult.
The three power generating firms have been keen to attract thousands of small businesses as ongoing liberalization efforts allow more of the latter to choose their own power supplier.
Back to Newsclippings | To top
|
