Opening up the electricity market in Singapore has allowed consumers throughout the island to choose who they want to buy electricity from. They can either remain with the predominant SP Group or they may switch to any retailer of their choice according to their requirements. The choices available may be quite overwhelming for customers. The following are some points that consumers can refer to before making an informed decision.
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What Should Consumers Know Before Switching?
The first thing that consumers should remember is that switching is not mandatory. They may choose to continue with SP Group at quarterly-revised regulated tariffs as well. In addition to this, there is no deadline for switching. If consumers have a change of mind in future, they may switch to any retailer of their choice, depending on their requirements and convenience.
How Much Do These Retailers Charge?
Retailers, as of now, offer mainly two standard plans. The first plan, called the Fixed Price Plan, requires the customers to pay a fixed price throughout the duration of contract irrespective of the changes in regulated tariffs. For instance, the 24-month Fixed Price Plan’s charges from 17.78 cents per kWh onwards (offered by Keppel Electric, Geneco, etc.).
The other standard plan, called the Discount Off the Regulated Tariff Plan offers the customers a fixed discount on the existing regulated tariffs. Choosing this plan, thus, ensures lower electricity prices than the regulated tariffs at all times. While ES Power offers a 23% discount in its 24-month plan, Sunseap’s plan is the most expensive and offers a meagre 15% discount on the regulated tariffs for its solar energy-based plans.
Is Price the Ultimate Deciding Factor?
There are many other factors that must be given due consideration before choosing a retailer. The electricity companies may also provide certain incentives such as free gifts or rebates. So, it may appear that a company’s prices are higher than its competitors but once the incentives are considered, the effective prices may reduce, thus benefitting consumers.
Resellers versus Generators
While most of the retailers are essentially resellers, buying excess electricity from generators and selling to the customers, some companies like Geneco by Seraya Energy is also an electricity generator and are hence more capable of affecting the market prices without any constraints.
In addition to this, while some companies like ES Power provide carbon-neutral electricity which is predominantly non-renewable, other companies like Sunseap Energy are making a transition towards non-conventional and green sources of energy like solar energy – denoting a shift towards a more sustainable future. Consumers nowadays are aware of and prefer eco-friendly practices, the provision of such options will make the open electricity market (OEM) a competitive one for all retailers.
Final Thoughts
With the extension of the OEM to residents and businesses in Singapore, consumers islandwide can now exercise an unprecedented degree of flexibility in the choice of their electricity suppliers. All 13 participating retailers are offering different plans with varying prices, consumers should choose a plan and retailer befitting their electricity needs.
So, explore more electricity retailers in Singapore before picking one that suits you best