Ms Tan said the company’s analysis of some consumers on the 9-to-9 plan showed they were able to shift about 70 to 80 per cent of their electricity consumption to off-peak hours.
“An average five-room flat household can save easily, let’s say, more than S$30 per month,” she added.
“So, on an aggregate basis, they can (save up to) S$1,000 in comparison with a two-year fixed price plan.”
The company’s other option, the Save While Sleeping plan, is a fixed 24-month plan that allows people to get 35 per cent off the regulated tariff during off-peak hours.
BALANCING SUPPLY AND DEMAND
Mr Michael Wong, chief operating officer of Tuas Power, one of the retailers planning to offer time-of-use plans, also noted that the wholesale electricity market in Singapore runs on “a half-hourly basis”.
Power generation companies must bid to sell electricity in the wholesale electricity market every half an hour.
“(This means) we need to project the consumption before the half hour, and then we need to plan for the generation to meet the demand of that particular half hour,” said Mr Wong.
“That demand forecast becomes very important. The accuracy becomes very important for us to optimise our generation.”
He told CNA that time-of-use plans can help balance electricity supply and demand, which will in turn help with Singapore’s aim for net-zero emissions by 2050.
As the country incorporates more variable energy sources like solar and wind power, their integration also places additional stress on the power grid.
