How to choose the right electricity plan for your family
For a long time, there was only one electricity retailer in the country. Every quarter, the regulated tariff is reviewed and bills are then priced accordingly.
About a year ago, this changed with the launch of the Open Electricity Market in Singapore. Simply put, that means consumers can choose which electricity retailer they would like to go with - a little like picking a telco according to the plan that suits them best.
In Singapore, there are 13 approved retailers with more competitive pricing and various offers. Since May 2019, 40% of households have switched over to a new electricity retailer.
You may be thinking about switching over to a new retailer, but haven’t done so because of concerns about paperwork and choosing the right retailer and plan. We’re here to help - here are four things to look out for before making your decision:
1) Types of Plans Available
The two main types of plans available are:
- Fixed Price Plans, which allow you to pay the same rate across the entire duration of your contract with the retailer regardless of changes in the regulated tariff.
- Discount-Off-The-Regulated-Tariff Plans give you a percentage discount off the prevailing regulated tariff.
Different contractual terms will apply depending on how long your plan with each retailer lasts, e.g., 6/12/24/36-months - much like signing up for a 12 or 24-month plan with a phone company.
Do note that some retailers offer non-contract plans that may be more suitable for expatriates or foreign workers.
2) Which plan will save me more money?
The question here is: Which plan suits you best? As illustrated above, it all depends on the regulated tariff set out by SP Group - which is reviewed every three months.
- As Fixed Price Plans allow you to pay a constant electricity rate throughout your contract duration, they’d be more suitable for those who like certainty and do not believe that their retailer’s rates will fall below the regulated electricity tariff.
- Discount-Off-The-Regulated-Tariff Plans are suitable for consumers who do not mind that their electricity rates change every quarter, provided it is lower than the regulated tariff.
Certain retailers also offer modified price plans, such as the peak and off-peak plan where you pay more for electricity during peak periods and vice versa.
3) What about other factors - such as clean energy options?
For the environmentally conscious, there are plans where one can opt for neutral footprint and clean energy price plan options offered by these retailers. These plans would ensure that a percentage of your energy is drawn from renewable or carbon neutral sources.
For example, with the clean energy option, consumers can select plans where 1% or 50% of their electricity is solar powered, while committing to a varying number of months.
For those who prefer some flexibility in terms of a sign-up gift or security deposit waiver (which is usually subjected to terms and conditions and varies from retailer to retailer), there are choices available as well.
4) Where do I go to find the best plan for me?
Feeling overwhelmed with all the options? Don’t worry, DBS Electricity Marketplace is a great option for consumers to compare various price plans and hunt for deals too.
8 out of 12 approved EMA retailers have come on board the portal to date, with additional credit card promotions and perks to boot. On top of that, customers enjoy savings of up to S$500 yearly when they do the switch on the DBS Electricity Marketplace.
If you’d like to switch to a new retailer, it’s hassle free as well. Simply pick a plan that suits you and choose your preferred payment options via internet banking. After you review your details and submit your application, DBS and the retailer will take care of the rest for you.
Bill payment-wise, it is the only marketplace in Singapore to allow customers to switch their electricity provider and set up their GIRO/credit card recurring bill payment in one seamless journey.
The platform also has various tools and features to help you make an informed decision. Here’s a quick summary:
- Dynamic annual savings are displayed based on your electricity bill size and dwelling type.
- Price plan comparison tool to assess the various electricity price plans on our marketplace.
- Easy navigation with enhanced filter and sorting features to reduce the time spent on searching and comparing the electricity price plans
We hear you and have made the plans simpler and easier to understand on Electricity Marketplace.
Get started on making your switch here.