Fixed-rate Electricity Plan For Businesses: What You Need To Know

Electricity is a major operating cost for many businesses in Singapore. As utility prices fluctuate due to global fuel costs, geopolitical factors, and demand shifts, businesses are left vulnerable to unpredictable expenses. For some, even a small increase in electricity rates can make a noticeable dent in profit margins.

Choosing the right electricity plan can shield your company from this volatility. With various options in the open electricity market, it’s important to understand what suits your needs best. Among the available choices, fixed-rate electricity plan for businesses offers a level of cost control that’s hard to ignore.

While some plans are linked to the regulated tariff or spot market prices, fixed-rate plans promise stability. 

Let’s take a closer look at what these plans involve and whether they’re the right fit for your business.
 

What Is a Fixed-rate Electricity Plan?

A fixed-rate electricity plan—also known as a Fixed Price Plan—means your business pays a set price per kilowatt-hour (kWh) throughout the contract period. It doesn’t matter if market prices surge or dip. Your rate stays the same.

Key features of these plans include:

• Predictable monthly costs: You know exactly how much you’ll be paying per unit of electricity.
• Defined contract duration: Most plans run for one to three years.
• No surprise fees: Rates are locked in, reducing the risk of sudden charges due to market shifts.

Why Businesses Choose Fixed-rate Plans

There are good reasons why fixed-rate electricity plan for businesses continues to attract interest, such as the following:

Budget Certainty

A fixed-rate contract allows companies to forecast energy expenses accurately. This is particularly helpful during annual planning and when budgeting across departments or cost centres.

Protection from Price Swings

Electricity prices can be volatile, influenced by factors like fuel costs, weather conditions, and changes in regulatory frameworks. Fixed-rate plans offer peace of mind by insulating you from these ups and downs.

Simplified Approval Processes

In larger organisations, financial approvals can be complex. A predictable, fixed-cost contract often speeds up internal approval workflows, especially when procurement teams or finance committees are involved.
 

Factors to Consider Before Signing a Fixed-rate Contract

While fixed-rate electricity plan for businesses has clear benefits, there are some important factors to weigh before signing on.

Contract Duration and Exit Fees

Longer contracts may offer better rates, but they also lock you in. If your business relocates or shuts down operations, early termination could result in penalties. Always check the terms.

Price Components

Even with a fixed-rate plan, components like market support services fees, market operation and power system operation fees, taxes, or grid charges may be bundled into the total price. Review the fine print so you’re not caught off guard by any underlying cost assumptions.
 

PowerSelect’s Fixed Price Plan: How It Works

PowerSelect offers a transparent approach to buying electricity through its Live Auction model. Here’s how it works:

• You start by setting the auction parameters. This includes your preferred contract length, the type of plan (e.g. 2-year Fixed Price Plan), and a starting reserve price.
• You also decide which electricity retailers to invite to the auction.
• Once the auction begins, retailers compete by bidding down the price over a 15-minute window.
• The lowest bid wins. You then sign the contract with the winning retailer.

The Fixed Price Plan brings clarity and speed to the procurement process. It ensures your business receives competitive pricing, as retailers actively vie for your account.
 

How to Decide If a Fixed Plan Is Right for You

Fixed-rate electricity plan for businesses isn’t a one-size-fits-all solution. Ask yourself a few key questions:

• Do we value cost predictability over the chance to benefit from falling prices?
• Is our electricity consumption stable throughout the year?
• Are we prepared to commit to a contract for one to three years?

Fixed-rate plans often suit:

• Manufacturers with consistent, high-volume power needs
• Corporate offices looking to simplify procurement and cost control

However, if your business prefers flexibility or expects short-term operational changes, consider other options such as a Wholesale Electricity Plan, especially if your business prefers more flexibility. This plan ties your electricity rates directly to the Uniform Singapore Energy Price (USEP), a half-hourly market-clearing price that fluctuates based on real-time demand, supply, fuel costs, and consumption patterns. 
 

Take Control of Your Electricity Expenses

Fixed-rate electricity plan for businesses offers cost stability and predictability—important advantages in an uncertain market. When managed well, it becomes a valuable tool for long-term planning and risk reduction.

Platforms like PowerSelect help simplify the process. With our Live Auction option, businesses can set clear terms and let retailers compete transparently. This reduces manual effort and ensures you get the best value from your electricity contract.

Learn more about PowerSelect’s Live Auction here: https://www.powerselect.sg/buy-electricity#Auction.