F&B outlets starting to pass on costs from utilities bill spike

Singapore

EVEN before the Ukraine crisis, electricity costs have risen by between 80 per cent and 300 per cent since late last year for food and beverage (F&B) operators to whom The Business Times spoke.

This was particularly the case for those affected by the exit of independent power retailers from the open electricity market (OEM), who have switched to pricier plans.

In the face of such pressures, some are passing costs on. From Mar 1, food court operator Koufu Group is charging 85 per cent of stall tenants an extra S$200-300 a month in miscellaneous charges.

Yet this only covers about 30 per cent of the higher power costs it is facing, said Koufu in response to queries from BT.

As its previous fixed-price contract ended on Jan 31 and the next one only begins on Jul 1, Koufu has secured monthly contracts under the Temporary Electricity Contracting Support Scheme (TRECS) for Febr…