By Yuan Soo Ng, Senior Director, Energy & Sustainability, Singapore
Cost reduction is a challenge for any organisation. Without the right strategy and solutions in place, it can be difficult to see where savings can be made. A major cost focus area for most organisations is energy consumption and procurement.
Buying energy can be complex. For example, prices in Singapore are determined by the supply and demand dynamics of both the local and global energy markets. While there is currently an oversupply of generating capacity locally, major oil producers globally are cutting back on oil output to reduce the oil supply glut.
Global oil prices are fluctuating constantly and poor decisions on energy procurement can have a huge impact on an organisation’s energy bill and performance, especially when compared against established benchmarks or budgets.
Poor energy procurement decisions can be costly. Suffice to say, digging deeper into your energy bill is key to achieving cost savings, but in reality, few companies have neither the time nor the right expertise to do so.
Seeking help from the right strategic energy consultant will help keep you ahead of the game by procuring the optimal energy mix for your business while keeping you abreast of any anticipated major events in the energy market that can lead to price increases or reductions. Energy consultants can empower organisations to make informed, confident decisions in the ever changing local and global energy market landscape.
For example, in Singapore, more purchasing options have recently been added to the local electricity market with the introduction of the Electricity Futures Market as well as Independent Energy retailers’ participation in the retailing business.
An energy procurement consultant has the ability to constantly monitor the energy market dynamics, allowing them to review your current mode of electricity purchase and identify strategic sourcing options for the best possible purchase opportunities. This includes advice and guidance on the most competitive type of energy plans such as fixed or floating energy rates in accordance with the energy market supply & demand outlook and the organisation’s load profile mix and energy purchase objectives.
By taking a strategic and proactive approach to procure energy, an organisation can better control and take advantage of cost reduction opportunities before it is too late.
Yuan Soo is instrumental in setting up and growing the energy management business, achieving significant milestones and preferred vendor status in energy audit and procurement over the last 11 years. She also drives green and carbon management initiatives such as successfully registering the installation projects of chiller retrofit and LED lighting with Verified Carbon Standard (a leading voluntary greenhouse gas programme), and the pCDM programme from the United Nations Framework Convention on Climate Change.