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Published on: 20/03/2019

Ever felt overwhelmed by the high operating costs of managing a development? Running a commercial property or a condominium is challenging enough, with tens—if not hundreds—of tenants’ expectations to manage, cleanliness to maintain, and public facilities to upkeep. What more with the exorbitant cost of energy bills?

One of the costliest factors of maintaining any MCST is, of course, the electricity required to keep common areas and public facilities running at all times. These include swimming pools, elevators, lobbies, corridors, air conditioners, and more. Having said that, it’s no surprise that the steady increase in electricity tariff over the years has taken its toll on many building owners. As a matter of fact, statistics have shown that from January 2018 to January 2019, the tariff has increased by a whopping 10.4%.

With the Demand Aggregation Scheme, however, your development may be able to save up to 30% on electricity costs in the long term. If you are looking for ways to implement this scheme without the hefty rewiring upfront cost, Electrify is here to help you. Here’s what you can expect when you sign up with us:

* Limited time only, terms and conditions apply.

 

While it’s a smart move to practice energy-saving habits, such as installing energy saving devices like motion sensors and low power-consumption LED lighting, we believe switching to a retailer under the Demand Aggregation Scheme is a much smarter and faster way to slash your bills. With retailers’ offers generally 25-30% cheaper than the regulated tariff, savings are definitely guaranteed.

However, if you’re running a non-residential property and you’re able to obtain 100% consensus from all your tenants, then the En-Bloc Contestability Scheme (ECS) is for you. Below is a comparison table that sums up the differences as well as the pros and cons of these two schemes, to help you weigh your options and determine your suitability.

Or, you can just reach out to us at [email protected] to learn more!

 

1. Your Options
Demand Aggregation Scheme (DAS) En-Bloc Contestability Scheme (ECS)
This new scheme allows you to tap out an additional metering point by rewiring the common areas, so as to help you enjoy electricity cost savings regardless of your tenant’s choices. Under this scheme, you will need to obtain 100% consensus from all tenants before you can turn contestable.

 

2. Suitability
Demand Aggregation Scheme (DAS) En-Bloc Contestability Scheme (ECS)
This is for you, if:

a. You aren’t able to obtain consensus from all tenants to buy electricity on their behalf.

b. You would like to enjoy cost savings without having to bear any credit risk for your tenants.

This is for you, if:

a. You are able to obtain 100% consensus from all tenants to buy electricity on their behalf.

b. Your premise is for non-residential purposes.

 

3. Pros & Cons
Demand Aggregation Scheme (DAS) En-Bloc Contestability Scheme (ECS)
Pros

a. Credit risk is not on you, and you are not required to bear the costs if your tenants fail to pay their bills.

b. You are eligible for contestability even if your tenants choose to remain with their existing electricity provider.

a. Lower cost needed for meter leasing of submeters.

Cons a. Rewiring work is required, which may set you back by at least $30-50k in the initial stage, with an average ROI of more than 2 years. a. You bear all credit risks. This means that should the tenants default on payment; you will be held responsible.

b. You must get 100% consensus from all tenants, and this could take a very long time to accomplish.

c. You may have to install private meters and/or pay tenant management services.

Whether you’re under the En-Bloc Contestability Scheme or the Demand Aggregation Scheme, we can help you compare and find the best energy plan for your development and slash those power bills. Visit ELECTRIFY.SG now or get in touch with our sales consultants at [email protected] for assistance.

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