Electricity Plans For Business: Choosing The Right Plan For You

Electricity costs are a significant component of operating expenses for businesses across all sectors. Selecting the best electricity plan is not only a financial decision; it also affects long-term cost efficiency and risk management.

An optimised electricity plan can contribute to operational stability. Adjusting procurement strategies or switching plans at the right time can help lower overheads and protect against market volatility.

To support this, PowerSelect supports businesses by simplifying the comparison, negotiation, and contract execution of electricity contracts. 

Understanding Your Business’s Energy Needs

Every business consumes electricity differently. The first step is to understand when and how electricity is being used.

Some companies operate around the clock. Others have usage patterns that are heavier during peak hours or follow a typical weekday schedule. Spotting these trends—such as off-peak or weekend demand—can guide which type of plan is most cost-effective.

The business model plays a part, too. For example, manufacturers often need continuous, high-volume power. A retail store may have varying demand across the day, while offices usually run on a more predictable energy schedule.

Price certainty is another key consideration. Some organisations prefer knowing their electricity costs in advance. Others may accept price fluctuations in exchange for the possibility of lower rates.

Contract flexibility also matters. While longer-term contracts tend to come with better rates, but early termination penalties can be burdensome should business needs shift. In contrast, shorter contracts allow more room to adapt, which may be valuable during periods of operational change or market uncertainty.
 

Types of Electricity Plans Available

When it comes to electricity plans for businesses, there is no universal solution. The right plan depends on your organisation’s consumption pattern, pricing preferences, and operational priorities.

Fixed Price Plans

Fixed Price Plans offer a consistent rate throughout the contract period. This means your electricity rate won’t change, even if market prices rise.

These plans suit businesses with steady consumption and a preference for stable budgeting. With no surprises in monthly charges, financial planning becomes more straightforward. It’s a suitable option for companies looking to manage risk and avoid price volatility.

Wholesale Electricity Price Plans

Wholesale plans link your electricity cost directly to the Uniform Singapore Energy Price (USEP), which is the half-hourly market‑clearing price in Singapore’s Wholesale Electricity Market (SWEM). Prices fluctuate based on real-time demand–supply conditions and factors like consumption patterns and fuel costs.

These plans suit businesses or consumers comfortable with volatility and seeking potential price savings during low‑USEP periods. However, without a fixed rate, bills can spike sharply when USEP rises such as during high demand or generator outages.

Custom or Hybrid Plans

Some businesses need more than standard pricing structures. Larger organisations, those operating multiple sites, or companies with specific sustainability goals may benefit from customised electricity plans.

These can be arranged through the Invitation to Tender (ITT) process. Businesses outline their requirements—such as hybrid pricing, green energy sources, or aggregated contracts—and electricity retailers respond with tailored proposals.
 

How to Choose the Right Plan

A well-matched electricity plan supports both operational continuity and financial planning. To make the right choice, it’s important to do the following:

1. Evaluate your risk appetite (fixed vs floating prices)

Consider how much price stability your business needs. Fixed price plans offer certainty over the entire contract period. This makes budgeting easier and shields your business from market fluctuations. 

On the other hand, floating or tariff-linked plans may offer lower rates during favourable market conditions, but they also carry the risk of rising costs. If your business has the flexibility to manage variable expenses, this may be worth exploring.

2. Check your business’s load profile

Understanding your load profile—how and when your business consumes electricity—can influence the plan that fits best. Businesses with consistent, predictable usage are often able to secure better rates. 

In contrast, operations with irregular or seasonal demand may benefit from plans that offer more flexible pricing structures. Analysing your usage trends can also help you avoid unnecessary charges tied to peak demand or excess consumption.

3. Consider contract duration and termination flexibility

Electricity plans for business vary in contract length, ranging from short-term agreements to multi-year commitments. Longer contracts often come with more competitive rates but may include penalties for early termination. 

If your business expects changes in its operations or scale, a shorter or more flexible contract may be more appropriate. Review the terms carefully to ensure the agreement aligns with your business plans.

4. Look at bundled services or hidden fees

Some electricity plans include bundled services such as energy audits, usage dashboards, or green energy options. While these may add value, it’s important to assess their relevance to your business. 

At the same time, be aware of less obvious costs—administrative charges, penalties for exceeding usage thresholds, or conditions attached to promotional rates. Knowing the full cost structure ensures there are no surprises once the contract is in place.
 

Comparing Procurement Options from PowerSelect

Businesses typically choose between fixed and floating price electricity plans. The right option depends on how your organisation uses energy, its risk tolerance, and operational needs.

Live Auction

Live Auctions provide a fast and transparent way to secure competitive electricity rates. Businesses specify contract details such as duration, preferred plan type, and a starting reserve price. Retailers then compete in real time to offer the best rate within a 15-minute window.

As such, the lowest bid wins. This option is ideal for businesses that want to move quickly without compromising on cost competitiveness.

Invitation to Tender (ITT)

The ITT process is more suited to businesses with complex or non-standard requirements. It allows for detailed specifications—such as renewable energy inclusion, hybrid pricing structures, or multi-site integration.

Electricity retailers respond with tailored proposals, which businesses can then review and negotiate. While the process takes longer, it provides flexibility and customisation that fixed or standard plans may not offer.
 

Where PowerSelect Comes In

Electricity procurement is a strategic decision with direct cost and operational impact. As business needs change, reviewing your plan regularly ensures it remains a good fit.

PowerSelect simplifies this process through structured, reliable methods. Businesses can access a broad network of trusted electricity retailers and benefit from competitive, transparent bidding, thereby driving better pricing outcomes. 

Find the best electricity plan for your business. Visit our website to know more: https://www.powerselect.sg/buy-electricity.