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21st July 2000, The Straits Times

Few takers for free energy audits

Auditors guarantee savings on utility bills, yet in energy-hungry Singapore the take-up rate has been dismal

By NEAL COOKE

BUILDING owners can hire an expert to do an energy audit, manage or upgrade their equipment to save money on energy bills, and pay nothing for the service.

A performance contracting agreement makes it possible.

Checks with five energy service companies revealed they offered these services.

A performance contractor will assess a building and identify potential energy savings.

They can implement upgrades and even provide funding, if needed.

The owner pays the contractor the savings he makes on his energy bills, for the length of the contract.

Honeywell has offered performance contracting in Singapore for the past two years.

With the company's help, Changi Business Park has saved 40 cents from every dollar it spends on energy bills, compared to similar-sized buildings -- in one month.

According to Hon -eywell's technical services director, Mr Lui Wing Sin, savings are guaranteed because after the energy-saving audit a conservative savings plan is given to the owner.

The contractor is paid according to his performance.

So any savings shortfall is borne by the contractor, said Mr Lui.

In the US and Europe, performance contracting has been popular since the 1970s because of rising energy costs, ageing buildings and the advent of the green movement.

But it has not caught on in Singapore.

Director of Supersymmetry Services, Mr Lee Eng Lock, said: ""We have been in the business for 13 years and the local take-up rate has been dismal''.

But Mr Lui said: ""There are encouraging signs now, with more building owners showing interest, compared to three years ago''.

The May report from the Inter-Agency Committee for Energy Efficiency underlined the need for more energy-saving initiatives.

One finding was that buildings with high energy consumption could reduce energy bills by as much as 30 per cent with mandatory audits.

Mr Lee said that as energy efficiency improved, the Government could spend less on building new power plants.

His company is in the third year of a five-year contract, with The German Centre for Industry and Trade in Singapore, to reduce the centre's utility bills by 20 per cent.

Other companies offering performance contracts in Singapore include PWD EMS, which was set up on April 1 last year by PWD Corporation, and multi-nationals like Enron from the US and Elyo from France.

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