Should you switch electricity retailer?

Side-by-side comparison

You can stay with SP Group at the regulated tariff or choose one of two standard retailer plans, as the Energy Market Authority (EMA) explains. SP Group says tariffs are regulated by EMA and revised quarterly.

The FAQs on price plans and packages say SP Group does not tie customers to a contract period or charge early termination fees, while retailers can impose terms such as lock-in periods or early termination charges. The Consumer Advisory says switching will not affect your supply, and the FAQs on making the switch say all households may return to the regulated tariff.

Open electricity market: should you switch from the SP tariff?

You do not have to. EMA says switching to a retailer is not compulsory and there is no deadline to switch, and those who prefer to stay with SP Group at the regulated tariff can do so. Before signing you up, a retailer must get your acknowledgement of the Consumer Advisory, which lists what to check before you commit.

Signing with an electricity retailer in Singapore helps only if the plan's rate and terms suit you over the whole contract, not just in the first few months. Look at the full contract period, the exit terms and what happens at renewal.

If a high bill is what started your search, read why an electricity bill jumps first. A new price plan changes the rate you pay, not how much electricity your home uses.

Fixed vs discount-off-tariff plans

EMA describes two types of standard price plan. A fixed price plan suits you if you prefer a constant rate for the contract. That rate may be higher or lower than the regulated tariff during the contract, because the tariff is reviewed every quarter. A discount off the regulated tariff plan gives a fixed discount, so your rate changes in tandem with the tariff.

That is the core of any fixed price plan vs SP tariff choice: a constant rate is easier to plan around, but it can sit above or below the tariff as the tariff is revised. SP Group says the tariff is revised quarterly to reflect the actual cost of electricity, so check the current tariff on its page before you compare any plan.

The Open Electricity Market website notes that retailers may also offer non-standard price plans, whose rates may not be all-inclusive and may include recurring charges or fees. For a rough estimate of your own costs, try the electricity cost calculator.

Contract terms

The guide to switching to a retailer on the Open Electricity Market website says to ask the retailer for the plan's Fact Sheet and the Consumer Advisory. Before you sign, it says to look out for:

• contract duration
• payment terms
• security deposit
• early termination charges
• auto-renewal clauses
• the terms of any bundled services or products

The Consumer Advisory says the Fact Sheet summarises the key contractual terms, and that you should ask the retailer to explain any terms you do not understand.

Auto-renewal

If you choose a contract with automatic renewal, the Consumer Advisory says the retailer must offer a renewed rate lower than the regulated tariff at the point of renewal. The FAQs on making the switch add that you can end an auto-renewed contract within 30 calendar days of its start by giving the retailer at least 30 calendar days' notice, with no early termination charges or fees. If your contract does not renew automatically, you are switched back to SP Group at the regulated tariff when it expires.

How to compare fairly

Start with your own past usage from your bill, so every plan is tested against the same usage. Then:

• Compare standard plans in the Price Comparison Tool on the Open Electricity Market website, which EMA points consumers to.
• Compare plans with the same contract length.
• Check what happens at the end of each contract: renewal or a return to the regulated tariff.
• Read bundled offers separately from the electricity rate, and ask for their terms.
• For a dispute with your retailer, the Consumer Advisory says you can approach the Consumers Association of Singapore (CASE).

For a general approach to any home job, see how to compare quotes.

Which one should you choose?

Neither option wins for everyone. Stay on the regulated tariff if you want no contract, since SP Group does not tie customers to a contract period, according to the FAQs on price plans and packages. Consider a retailer if a plan's rate and terms suit your usage over the whole contract. Whichever you choose, wiring and appliance faults are a job for an electrician, not your retailer. You can compare electrical companies in the directory.

Questions