How Much Have I Saved on Electricity Bill?

By The Boy Who Procrastinates - May 15, 2021

With the nationwide launch of the Open Electricity Market (OEM) back in 2018, I have made the switch to an electricity retailer, Geneco in March 2019. 

It was a fixed price electricity plan at 17.78 cents/kWh for a contract duration of 24 months. The alternative that was on the table was a 22% discount off the electricity tariff. 

Now as the contract has expired, I have consolidated sufficient data to determine how much I have saved since the switch. This can also help to answer if I have made the wise choice in deciding between the 2 electricity plans. 

For the avoidance of doubt, all figures presented are inclusive of GST.

Electricity Tariff

Before the rollout of OEM, residential consumers in Singapore can only purchase electricity directly from SP Group which was the sole electricity retailer then.

The tariff set by SP Services is reviewed each quarter and is regulated by the Electricity Market Authority. 

This regulated tariff translates to the price of electricity that consumers are paying on their usage.

Currently, about 95 per cent of Singapore's electricity is generated using imported natural gas.

Given that the prices of natural gas are indexed to oil prices, fluctuations in the tariff rate are commonly observed in the above chart.

Comparison of Electricity Plans

With information on the quarterly household electricity tariff, we can now compare the two electricity plans — namely the fixed price of 17.78 cents/kWh and 22% discount off tariff. 

As shown in the chart, the discounted rate off tariff has fallen below the fixed rate in 2 quarters, namely Q3 2020 and Q1 2021. This coincides with the trend of the electricity tariff that has declined 14.86% and 3.13% from the previous quarter. 

From the graph, it appears that the fixed price plan is more cost saving when there has been an increase in tariff or when it is moving sideway. Discount off tariff is favorable in the event of a considerable decline in the tariff.  

However, given that the tariff trend is unpredictable, I have opted for fixed rate plan for peace of mind.

Amount saved on Electricity Bills 

With information of my monthly household electricity consumption, I am able to deduce and compute the electricity bills based on regulated tariff, 22% discount off the electricity tariff and fixed rate plans. 

Comparing the total electricity bills over the duration of 24 months, it appears that the fixed rate plan costs the least at $1,280, approximately 5.4% cheaper than the 22% discount off tariff plan. 

By switching to an electricity retailer, I have saved $454 with the fixed rate plan, which is calculated to be 26.2% cheaper than the regulated tariff plan. 

Switching out of Geneco

Upon expiry of the 24 months contract with Geneco, I have managed to switch out of Geneco and transfer to SP Wholesale plan.

However, the overall process of transferring electricity account has not been a smooth experience for me. 

Based on the FAQ listed on the website, the contract will be automatically renewed upon expiry of the existing contract. Therefore, consumers should notify their intent to switch 30 days prior to the contract expiry. If no action has been taken, the contract will be renewed for the same duration of the initial contract (24 months in my scenario).   

With the intention to switch out, I have written in to request for transfer to SP upon contract expiryHowever, weeks passed and I have not heard from the team on my termination request. 

After a few tries, I have managed to put through the request verbally after reaching the customer service officer on the line. Thereafter, I have received an email confirmation on the electricity account transfer to SP. 

And I would have thought that this marks the end of relationship with Geneco until they have informed that my contract has been renewed one month later. 

Logging on to the Geneco portal, it was shown that the contract has been renewed, lasting till 2023 at 18.83 cents/kWh.😱

This came as a shock to me and has caused much distress as the notification was sent on weekend and there was no way I can seek immediate assistance from the customer service officers to clarify on this matter. 

Eventually, the issue was resolved when they have explained that an internal system error has triggered the update on the contract, thus allowing me to heave a sigh of relief. 

Currently, I have switched to the SP Wholesale plan. A comparison with the plans offered by electricity retailers will be made once there is sufficient data to explore with. Stay tuned! 

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Disclaimer: Kindly note that this is not a sponsored post. The author is in no way affiliated with Geneco and/or SP Group and does not receive any form of remuneration for this post. The Boy who Procrastinates has compiled the information for his own reference, with the hope that it will benefit others as well.

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