Comparing Price Plans in the Open Electricity Market
May 2019 will mark a significant moment in Singapore’s
By then, all households and businesses in the island will be able to select their preferred electricity retailer on the Open Electricity market (OEM).
Currently on a progressive rollout area-by-area, many may have seen retailers promoting their electricity plans. However, consumers in the market may have some questions about these plans and how they affect their bills, before making the switch.
What are the Price Plans Offered by Retailers?
Retailers offer various standard and non-standard price plans.
In terms of standard price plans, there are two types which exists in the OEM. The first plan, called the Fixed Price Plan, require consumers to pay a fixed price throughout the duration of the contract irrespective of its deviation from the regulated tariffs. The other plan, called the Discount-Off-the-Regulated-Tariff Plan provide customers with a fixed discount on the prevailing regulated tariffs.
Understanding How Standard Price Plans Work
The current electricity tariff for Q2 of 2019 is 22.79 cents/kWh. Now, consider a fixed price plan where consumers are required to pay 20 cents/kWh and a discounted-off-the-tariff plan which offers 20% discount on the regulated tariffs.
Take into account a 3-room HDB unit, they consume an average of 255 kWh of electricity monthly as of February 2019. The following calculations represent the probable monthly electricity bill, excluding 7% GST, according to three price arrangements.
Bill with SP Group:
($0.2279) x 255 kWh = $58.11
Bill based on a Fixed Price Plan:
($0.2000) x 255 kWh = $51.00
Bill based on a Discount-Off-the-Regulated-Tariff Plan:
(0.80) x ($0.2279) x 255 kWh = $46.49
What are the Rates Offered by the Retailers?
Presently the rates provided by the Fixed Price Plans ranges between 17.62 cents/kWh and 23.01 cents/kWh, while Discount-Off-The-Regulated-Tariff Plans offer between 15% and 25% off the regulated electricity tariff.
The rates vary from retailer to retailer and consumers can choose from among 13 retailers as of now. It is, however, evident that the savings are entirely dependent on prevailing regulated tariffs.
What affects your final bills?
Aside from one’s chosen price plans, there are some third party charges that can affect the final monthly bill.
1. Transmission Loss Factor: This refers to the losses in energy that occur during transmission. However the lost energy is still considered delivered energy that will still be payable by consumers, depending on their billing system.
2. Carbon Tax: Implemented since the start of 2019,this will be charged at $5 per tonne of greenhouse gas emitted for facilities producing at least 25,000 tonnes of greenhouse gases. Its implementation encourages corporations and their consumers to be more energy efficient.
Different retailers have different takes on passing these third-party charges to consumers. Therefore, it is the sole responsibility of a consumer to make an informed decision by studying how the plans they subscribe to might affect their bills.
Explore your options and compare price plans with a leading electricity retailer since estimating one’s electricity bills in Singapore is no longer a mystery.