The gradual rollout of the Open Electricity Market from November 2018 has allowed Singaporeans to choose their own electricity provider beyond just SP Group. There are 13 electricity retailers which are committed to providing the best electricity plan to every household and business according to their needs.
Deciding on the right electricity retailer is important as it affects how much one could save on their monthly utility bill. But where do we start?
1. Based on Available Plans
There are two main plans to choose from. The ‘Fixed Price Plan’provides stability in one’s bill as it charges a constant electricity rate throughout their contract duration (i.e. 6-month, 12-month, 24-month, 36-month), regardless of tariff changes. The ‘Discount Off the Regulated Tariff Plan’ provides a fixed percentage discount off the quarterly regulated tariffs.
Doing a quick comparison using a tool from the Open Electricity Market’s official portal, the following is a summary of different plans.
Fixed Price Plans
For a 6-month contract, Geneco by Seraya Energy provides the lowest rate at 17.63 cents/kWh through their ‘Give Us A Try’ plan.
For a 12-month contract, iSwitch provides the lowest rate at 17.62 cents/kWh through their ‘Chope The Rate’ (12 Months) plan.
For a 24-month contract, Keppel Electric, PacificLight, Sembcorp Power, Geneco by Seraya Energy, and Senoko Energy Supply are retailers providing the lowest rate at 17.78 cents/kWh through their individual plans.
Discount Off the Regulated Tariff Plans
For a 6-month and 12-month contract, Ohm Energy provides the highest discount at 25% off regulated tariff through their Ohm Discount (6 Months) and (12 Months) plan.
For a 24-month contract, ES Power provides the highest discount at 23% off regulated tariff through their ‘GFREEDOM (100% Carbon Neutral Electricity)’ plan.
Based on an individual’s contract status, they may find different plans to be the cheapest for them. However, there are miscellaneous charges beyond such advertised rates. One of them is the transmission loss factor charge.
2. Transmission Loss Factors Charge
Transmission Loss Factors are scaling factors applied at the metering point to account for network and transformer losses. When electricity is distributed to one’s home or office, a small volume of it gets lost. Therefore there are charges to account for the loss.
However, not all electricity retailers pass this cost to you, but instead absorb it. Keppel Electricity and Geneco by Seraya Energy are some examples of it. So, if you engage with their contracted plans, chances are, you will be paying the advertised rate rather than be shocked by additional charges.
3. Status: Generator or Resellers?
The main reason why some retailers provide less competitive prices than others is because they are just electricity resellers and their prices are dependent on the generating companies from which they buy excess electricity from. Others benefit from being both an energy producer and retailer, existing as the main market force that affects prices. One example is Geneco, their parent company, YTL Power Seraya, is one of the biggest power generating companies in Singapore with a history of providing for the nation.
The Energy Market Authority stated that the nationwide rollout of the Open Electricty Market will be fully realised by May 1, 2019. Do check that you make the switch to the right electricity retailer by selecting one that befits your electricity consumption habits among other factors.
Click the following link if you are keen to find out about a sustainable retailer which provides electricity in Singapore.
