The full launch of the Open Electricity Market throughout Singapore has provided consumers with the flexibility to choose who they want to buy electricity from. But given the number of electricity retailers available in the market and the plethora of plans provided by them, it might get a bit strenuous for consumers to choose what’s the best for them. So here is all the information to simplify the things for them.
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What Are the Plans Offered by Electricity Companies?
As per Energy Market Authority (EMA) guidelines, retailers provide two kinds of standard plans – Fixed Price Planand Discount Off the Regulated Tariff Plan. While the former requires consumers to pay a fixed price throughout the contract duration, the latter provides consumers with a fixed discount on the regulated tariffs prevailing at that point of time. In addition to this, there are plans with varying contract duration such as 12-month or 24-month plans.
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Which Retailer is Providing Electricity at Lowest Prices?
The prices being charged by the various competing retailers in the Open Electricity Market are essentially dependent on the plan into consideration. Different retailers charge differently on the basis of the type of plan as well as the duration of the contract. Hence, one retailer may be offering the most reasonable costs for one plan but it may not be the best in case of another plan.
Compare & Contrast – What Does the Data Show?
Following is a comparison of prices being offered by various retailers. Considering the 24-month Fixed Price Plan, Geneco, Sembcorp Power and Keppel Electric offers electricity at the cheapest price of 17.78 cents per kWh as compared to its other competitors.
Looking at the Discount Off the Regulated Tariff Plans for the 6-month contract period, Ohm Energy emerge victorious over its competitors offering a whopping 25% discount on the regulated tariffs as opposed to other retailers such as Sunseap Energy (23.00%) or Diamond Electric (20.00%).
How Do Certain Companies Provide Different Prices?
The primary reason is that while other retailers are essentially resellers and their prices are dependent on the generating companies from which they buy electricity, others such as Geneco are electricity generating companies themselves. Its parent company YTL PowerSeraya is one of the premier power generating companies in Singapore. Owing to this, it can control the market price and offer low prices to the public.
In addition to this, some retailers absorb the transmission loss factor in order to provide customers with electricity at the advertised prices. On the contrary, some retailers pass on this additional charge to consumers and consequently, their offered price might be more expensive.
What’s Next?
Opening up the electricity market in Singapore has entitled customers to the power of choice. They can choose from a range of 13 different electricity retailers. A comparison of prices among different retailers’ plans will reveal that the best pick for consumers is one that’s based on their preferred plans.
With so many companies providing electricity in Singapore, it is up to individual customers to make a suitable choice.