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More Choices and Greater Gains With The Open Electricity Market

If you want to save on your home or business bills, then this is an article you should not miss!

 

Since 1 November 2018, the Energy Market Authority (EMA) has progressively opened up the electricity market to give you more choice and flexibility when buying electricity. This means you get to benefit from competitive prices and great offers from different retailers! However, if you want to continue buying your electricity from the SP Group at the regulated tariff, you can do that as well.

 

Let’s say you are keen on switching to a retailer. So, what are the things that you should know before you switch?

 

1. Take Time to Consider Your Options

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There is no deadline to switch. The Open Electricity Market is being rolled out by 4 geographical zones, precisely to give you the opportunity to learn more about your choices. So, take your time and choose wisely.

 

2. Picking The Price Plans For You

With the plethora of choices offered by the retailers, it’s always good to do some homework to compare the different price plans. Use EMA’s Price Comparison Tool where you get to view and compare the various standard price plans. Alternatively, approach your shortlisted retailers for them to explain more about their packages.

  • A Fixed Price Plan is more suitable for consumers who prefer a level of stability over their electricity bill as they pay a fixed electricity rate during the contract duration.

Image Source: Energy Market Authority

  • However, this means the electricity rate may be higher or lower than the regulated tariff, which is adjusted every quarter.

Image Source: Energy Market Authority

  • A Discount Off Regulated Tariff plan provides a fixed discount off the regulated tariff, which is revised every quarter, throughout the contract duration.

Image Source: Energy Market Authority

  • Thus, it is more suited for those who do not mind the rates changing every quarter so long as they are lower than the regulated tariff.

Image Source: Energy Market Authority

When choosing your price plan, do consider your lifestyle habits and preferences such as the billing arrangement, whether retailers charge a security deposit and if there are any other charges stated in your contract.

 

You should also read through the Consumer Advisory and your preferred price plan’s Fact Sheet. Key contractual terms to look out for include the contract duration, payment terms, security deposit, early termination charges and auto-renewal clauses.

 

3. Debunking Myths

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In case you’ve any doubts about switching to a retailer, let us take the opportunity to set the record straight on some of the common myths that you may hear of:

 

  • Oh no, I must switch to a retailer.

It is not compulsory for you to switch to a retailer. You can continue buying electricity from SP Group at the regulated tariff.

 

  • My electricity supply will be disrupted if I switch to a retailer.

Rest assured it will not be disrupted. Who you buy electricity from is independent from how electricity is delivered to you. No matter who you choose to buy electricity from, you will continue to receive your electricity supply from the national power grid operated by SP Group.

 

  • I am stuck with the retailer that I choose.

Good news! For homeowners, you can choose to switch back to SP Group at the regulated tariff after your contract with the retailer ends. You can even switch to another retailer if you like. If you plan to terminate your contract before the contract ends, do check with the retailer on any early termination charges or other fees that may apply.

 

Once you have decided on your retailer, the steps to switching are easy. For new homeowners, simply open a utilities account with SP Group and inform them of your intent to switch. Then sign up with your preferred retailer who will work directly with SP Group to make the switch for you. As for existing homeowners who already have a utilities account with SP Group, simply sign up with your preferred retailer and your contract will start as early as 5 business days after the retailer informs SP Group about the switch.

 

For more information, please visit www.openelectricitymarket.sg or call 1800-233-8000.

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