By default, Singaporeans purchase their electricity from SP Group. Now, with the Open Electricity Market (OEM), that is no longer the only option as there are 13 retailers operating locally for Singaporeans to choose from.
Switching to any of these retailers to provide for your electricity needs will let you experience at least 20% savings on your monthly electricity bills –no matter which retailer or plans you end up purchasing. Now is your time to act!
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Why are these providers able to retail electricity at a lower price than SP Group?
The OEM allows power generation companies to operate their retail arms and independent retailers bulk purchase electricity from such power generators every half-hour. Such bulk purchase occurs in a wholesale market, with fluctuating prices due to demand and supply. Such buying mechanism allows leeway for retailers to provide cheaper electricity to their customers.
Between retailers, they offer different sets of prices and plans because they vary their business strategies (e.g. targeting certain groups such as businesses, or eco-friendly consumers). Also, the inclusion of other bundled services such as telecommunication plans, and discounts based on certain consumption criteria makes pricing even more flexible.
The 3 Steps in Selecting an Electricity Retailer
All households and businesses have different plans and retailers that are suitable for them due to varying electricity consumption habits. Let this 5-step guide be a general reference.
Look back at your past electricity bills
By doing as such, you are able to review your average monthly electricity consumption in kWh. Knowing this information will allow you to estimate your monthly bill against the current tariff, or against different plans.
Confirm which price plans are suitable for you
There are two standard price plans generally offered by all retailers. The price changes due to the differences in contract duration, power source (e.g. solar, natural gas, etc.) and more.
Fixed price plans offer you a constant price or fixed fee per kWh consumed. Therefore, based on Step 1, you can calculate more accurately your possible monthly bill. As of now, the range of prices for this plan is between 17.55 cents/kWh and 23.01 cents/kWh.
Discount-off-the-regulated-tariff plans is an unfixed fee that changes with the fluctuations in regulated tariffs every three months. You will have a certain % discount off the prevailing tariff. You will definitely pay less than what the Energy Market Authority sets, but if tariff rises, so does the price you pay. The discount for all retailer’s ranges between 15% and 25% as of now for different plans.
Extra fees and charges
On top of the base electricity price, some retailers might pass some extra operational charges to consumers. An example of this is the Transmission Loss Factor (TLF) charge which is the cost accrued from electricity lost while it is distributed throughout the national grid. Sembcorp Power and Keppel Electricity are some retailers who does this, while others absorb the cost.
Additional fees also include necessary security deposits, paper bills, termination charges and administration fees. Conditions change from one electricity provider to another, so reviewing your contracts and plan’s factsheet is an important part of determining which retailer is the one for you.
While there are other considerations to take note (e.g. sign-up bonuses, rebates, sustainability of the chosen provider), the above steps are sufficient as measures to help you navigate through this new market structure.
Look no further, and see what one of Singapore’s biggest electricity retailers can provide for your housing and business needs!