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Choosing an Electricity Retailer in Singapore – Why You Should Look Beyond Just the Advertised Rates

electricity retailer singapore

Peter Lin

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This post was written in collaboration with Geneco. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best recommendations and advice in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.

When you’re a consumer, having the power to choose is very important to get the best products for your needs. With the soft launch of the Open Electricity Market earlier this year, Singaporeans living in Jurong literally have the power to choose from 13 electricity retailers, or from the incumbent SP Group. Choosing an electricity retailer is therefore an important decision, and of course, being smart Singaporeans, we always start with which electricity retailer in the Open Electricity Market is the cheapest.

 

Which is the cheapest electricity retailer in Singapore?

There are two different ways electricity retailers structure their price plans. The first is to set a fixed price for the electricity you use over a 6 months, 12 months or 24 months. The second is to set a discount off the electricity tariffs that SP Group. This changes every quarter and has been steadily rising for over two years.

 

Compare the cheapest fixed price electricity plans

The first option is the cheaper option most likely because it is not pegged to another rate. Currently, the cheapest fixed price electricity plans are:

Electricity Retailer Effective Price in S$/kWh Contract Duration
Geneco Powered by Seraya Energy 16.20 cents 24 months
iSwitch 16.90 cents 24 months
Ohm Energy 16.95 cents 24 months
Best Electricity 16.95 cents* 24 months
Keppel Electric 17.08 cents* 24 months

* transmission loss-adjusted reading

Electricity Retailer Effective Price in S$/kWh Contract Duration
Keppel Electric 17.39 cents* 12 months
SembCorp Power 17.39 cents* 12 months
iSwitch 17.50 cents 12 months
Geneco Powered by Seraya Energy 17.80 cents 12 months
Ohm Energy 17.95 cents 12 months

* transmission loss-adjusted reading

The cheapest fixed price electricity plan is Geneco’s Get It Fixed 24 plan for two years at 16.20 cents per kWh.

It is significantly cheaper than their next cheapest competitor, iSwitch. Considering the current electricity tariff is 23.65 cents per kWh this quarter, going with Geneco’s Get It Fixed 24 plan means the chance of saving an impressive 31.5% on your electricity bill! And if the electricity tariffs continue to rise, you could be saving much, much more.

At this early stage, it’s hard to say if other electricity retailers are going to try and match Geneco’s very aggressive pricing. Do take note that it’s a commitment of 2 years, of course, so if you go with any of the 24-month plans and there are better deals down the road, you will miss out on them.

 

Compare the cheapest discount off the regulated tariff electricity plans

Even though these plans might seem to have a similar structure to the previous ones in terms of having different pricing for different durations, it’s important to remember that they are a discount off the usual electricity tariff charged by SP Group. This means you’re essentially still at the mercy of the quarterly reviews. And, if you’ve been paying attention to the news recently, electricity tariffs have risen for the fourth straight quarter, and have been trending steadily upwards since April 2016.

That said, here are the cheapest discount off the regulated tariff electricity plans (ranked according to 6 months, 12 months and 24 months contract duration):

6 Month Contract Duration

Electricity Retailer Discount off the Electricity Tariff Effective Price in S$/kWh
Geneco Powered by Seraya Energy 23.80% 18.02 cents
iSwitch 23.00% 18.21 cents
Ohm Energy 20.00% 18.92 cents
Tuas Power 10.00% (first month free) 17.74 cents**

**This effective price is only applicable for the first 6 month trial with the first month free.

12 Month Contract Duration

Electricity Retailer Discount off the Electricity Tariff Effective Price in S$/kWh
Ohm Energy 22.00% 18.45 cents
Geneco Powered by Seraya Energy 19.00% 19.16 cents
Red Dot Power 19.00%* 19.16 cents
Senoko Energy 17.21%* 19.58 cents
SembCorp Power 17.21%* 19.58 cents

* transmission loss-adjusted reading

24 Month Contract Duration

Electricity Retailer Discount off the Electricity Tariff Effective Price in S$/kWh
Red Dot Power 22.07%* 18.43 cents
Geneco Powered by Seraya Energy 21.00% 18.68 cents
SembCorp Power 20.83%* 18.72 cents
Tuas Power (SG 53 Promo) 53.00% for 6 months, 10.00% for 18 months 18.74 cents
Best Electricity 20.31%* 18.85 cents

* transmission loss-adjusted reading

Depending on how long your contract status is, you may find that different companies offer the biggest discounts off your electricity tariff. However, this is exactly the reason why you can’t just look for the cheapest electricity retailers! Imagine always having to wonder if there’s a better offer out there? You’d drive yourself crazy.

Instead, look at which retailers can consistently give you lower rates, and why they are able to do so.

 

Which retailers absorb transmission loss factor charges?

You may have noticed an asterisk on some of the retailers listed above and wondered why the amounts in the table do not correspond to their advertised rates. This is because of an additional cost known as transmission loss factor. Simply put, when electricity is delivered to your home, a small percentage of it is lost in transmission. This amount is public knowledge and is updated every year in April.

This year, the Transmission Loss Factor is 1.03493. That means you have lost 3.493% of your electricity use. Now, while many retailers pass on this cost to you, there are some retailers that don’t. Geneco is one of those that absorb this cost, and therefore you pay the rate that is advertised.

 

Which retailers generate their own electricity, and which are just resellers?

In an extremely competitive space like the Open Electricity Market, one of the strategies is to just undercut the competition. However, if the electricity retailer does not generate their own electricity and is just buying excess electricity from electricity generation companies to resell, then they are often at the mercy of these same electricity generation companies.

Geneco’s parent company YTL PowerSeraya is one of the first and largest power generating companies in Singapore. As an established power generating company, they can control market prices and ensure that they keep costs low for consumers.

That is why, if you look at all the plans above, Geneco can offer some of the cheapest electricity plans regardless of price plan or contract duration. Far from engaging in a simple price war, their priority is to ensure that Singaporeans are getting the best deal for their electricity.

Authorities earlier said that a nationwide rollout will take place in the second half of this year. With that in mind, making sure you choose the right electricity retailer to suit your household needs and not just going with what might seem to be the cheapest rate is definitely an important step in saving money in the long run.

Interested in finding out more about Geneco’s plans and what they have to offer? Click here to find out more.

Disclaimer: All prices in this article are correct as of the time of publication, and are subject to change without notice.

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Peter Lin

I am the poster boy for reinventing one's self. I've been a broadcast journalist, technical writer, banking customer service officer and a Catholic friar. My life experiences have made me the most cynical idealist you'll ever meet, which is why I'm also the co-founder of a local pop culture website. I believe ignorance is not bliss, and that money is the root of all evil only if you allow it to be.