Yet to Switch to an Electricity Retailer? That’s About $242 You Could Have Saved Last Year

Open Electricity Market: Switch to Singtel Power - Geneco and save about $328 a year!

This post was written in collaboration with Singtel. 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.

So the electricity tariff is currently 22.93 cents per kWh (as of 1 Oct 2020, GST included). This is a 9.3% increase as compared to the previous quarter.

According to SP Group, out of this amount, we are actually paying admin and operation fees, for services like billing and meter reading, and for transporting electricity through the power grid. 

This means, ~21.40 cents/kWh is the actual energy cost.

Everyone used to get electricity from SP Group, but since the island-wide roll out of the Open Electricity Market since 1 May 2019, we’ve had the flexibility to switch to an electricity retailer — and enjoy savings of 20-30% compared to the regulated tariff.

However, according to Energy Market Authority statistics, only 4 in 10 households have made the switch (as of 31 Aug 2019). Even till now, about half of families here are still missing out on savings.

Which brings me to my first point:

You can save about $242 a year on electricity

No, we didn’t pluck this random number out of the air.

It’s an estimation based on a number of factors, such as our national average electricity consumption between Sept 2019 to Aug 2020 for a family living in a 4-room HDB flat (about 359 kWh), using the Q4 2020 regulated electricity tariff (22.93 cents/kWh) as a base.

We’re comparing this against the Singtel Power – Geneco Get It Less 24 plan, which is currently 23% off regulated tariff (prices are subjected to change every 3 months when the new electricity tariff is published).

(Psst… sign up for the Singtel Power – Geneco plan here, as there’s currently a special promo price. More deets at the end of this article.)

Type of housing With SP Group With Singtel Power – Geneco (Get It Less 24 plan) Annual Savings
4-room HDB $1,051 $809 $242
HDB Exec Condo $1,498 $1,154 $345
Landed $3,323 $2,558 $764

It’s not a small amount you can ignore, because it shaves a significant 23% off your electricity bill with a $50 online exclusive rebate — imagine if your household is big and your folks consume way over the national average? Would you rather keep the aircon remote under lock and key or switch to an electricity retailer for an “instant discount”?

Perhaps you’ve already made the switch, but your parents have not. What a hassle, they say, we’ll just stick to SP Group as they’ve served us well. That’s why we wrote this article — 5 Key Reasons Why Singaporeans Are Hesitant To Switch To An Electricity Retailer.

Protect yourself against tariff increases

In addition to paying less for your electricity, most retailers allow you to pay a fixed rate for 2 to 3 years, depending on your contract period.

For example, those who sign up now for Singtel Power – Geneco’s Get It Less 24 plan, will lock in the rate at 17.66 cents/kWh for 24 months. This means that even if the regulated tariff were to shoot beyond an exaggerated 30 cents/kWh for the next 2 years, we’d still pay our contracted rate till the plan ends.

Here are the recent tariff rates (inclusive of GST, in cents/kWh):

2020 2019 2018 2017 2016 2015 2014
Q1 25.94 25.52 23.07 21.61 20.86 24.92 27.45
Q2 24.63 24.39 23.70 22.89 18.92 22.33 27.53
Q3 20.97 25.92 25.31 22.17 20.62 23.98 27.48
Q4 22.93 25.07 25.82 21.72 20.47 21.77 27.05

From the historical data, tariffs have been hovering around the 25-26 cents/kWh mark since mid-2018. So it would definitely make sense if you switched to an electricity retailer offering sub-20 cents/kWh for a fixed period, i.e. 24 months.

The 17.66 cents/kWh that Singtel Power – Geneco offers is still lower than any of the regulated tariff rates we’ve been paying to SP Group since Q1 2014.

You’ll still be able to use U-Save rebates to offset bills

Don’t worry, switching away from SP Group doesn’t mean you’re left in the lurch with zero government rebates and benefits. You’ll still be able to use your U-Save rebates to offset bills. 

Do note that if you’ve switched to an electricity retailer, your SP Group charges (gas, water, etc) will get priority, and the balance will be used on your electricity bill.

Like SP Group, the retailers are subject to audit requirements by the Ministry of Finance, so they will calculate your U-Save rebates with care. The electricity bill from the retailer will also clearly itemise the rebates.

Read all the FAQs on U-Save rebates here.

When choosing your electricity provider, price is not the only factor

All things being equal, everyone would go for the cheapest electricity plan. However, there are some additional perks that retailers such as Singtel Power – Geneco offer their customers.

  • Ease of switching — The transfer will be handled by SP Group and Singtel Power – Geneco. Registration is swift, then we sit back and wait for the plan to kick in.
  • No disruption to your power supply — It’s business as usual, other than your cheaper bills and new e-bill from Singtel Power – Geneco.
  • Price match guarantee — Just let Singtel Power – Geneco know you saw a lower price within 7 days of signing up and they will refund the difference. Full details here.
  • No extra fees and charges — Singtel Power – Geneco waives the security deposit, and there are no upfront admin charges and registration fees to pay.

And the best part? Singtel Power – Geneco has a great promo going on now:

Get 30% OFF your power bill with a $50 online exclusive rebateThis comprises a $50 Geneco one-time rebate

Sign up to enjoy the offer.

Have you switched to an electricity provider? Let us know how much you’ve saved in the comments below!