SINGAPORE – If your household is among the majority purchasing electricity under the regulated tariff, you might be considering switching to a fixed-price plan.
The Energy Market Authority (EMA) has warned that the electricity tariff is “expected to rise significantly” in the third quarter starting in July, and analysts have projected as much as a 30 per cent increase.
This is because energy costs, which were driven higher after the US and Israel launched strikes on Iran in February, make up the bulk of the electricity tariff.
The component is calculated based on average fuel costs in the first 2½ months of the previous quarter. In the case of the upcoming tariff, that is from April to mid-June.
This means households under the tariff will not yet feel the effects of the fall in oil and gas prices following a peace deal between the US and Iran.
Households on the tariff, which is revised quarterly, buy electricity from national grid operator SP Group.
Those on fixed-price plans make the purchase through electricity retailers. The plans allow households to lock in the rate at which they purchase electricity for the duration of a contract.
Here are answers to some questions raised by the looming tariff hike.
This is the default if you have never switched to an electricity retailer.
Some 62.8 per cent of households in Singapore were purchasing electricity under the tariff as at June 1.
The other 37.1 per cent were on fixed-price plans, while less than 0.1 per cent of households were buying electricity at wholesale prices.
Purchasing electricity from retailers became an option only after the Open Electricity Market (OEM), meant to allow households to enjoy competitive pricing and potentially save on electricity bills, was piloted in April 2018.
The EMA initiative was progressively rolled out nationwide.
A household’s supply of electricity will not change when it signs up with an OEM retailer.
SP Group will continue to deliver electricity to everyone because it operates Singapore’s power grid.
There seven retailers on the OEM. Six of them offer plans for households, namely Geneco, Keppel Electric, PacificLight Energy, Sembcorp Power, Senoko Energy and Tuas Power Supply.
Flo Energy, which supplies commercial and industrial customers, is in the process of bringing its plans to homes.
EMA’s price comparison website (https://compare.openelectricitymarket.sg) shows that most of the offerings from retailers are fixed-price plans, with rates lower than the regulated tariff.
The shortest contract duration is six months, with Genoko’s Give Us A Try plan offering an electricity rate of 29.71 cents per kilowatt-hour, factoring in GST. That is one cent lower than the current electricity tariff.
Longer contracts typically offer better rates, as well as perks such as bill rebates and shopping vouchers.
Senoko Energy was the only retailer with a plan offering electricity at a discounted rate, which is pegged to the regulated tariff.
Its LifeSteady plan has a contract duration of 24 or 36 months, according to Senoko’s website.
Electricity retailers had more plans on offer earlier in 2026. But they started making changes to their offerings following the outbreak of the Iran war, hiking the prices of new contracts and removing discounted plans.
Analysts said households should consider whether they expect the regulated tariff to fall in the near future.
Sharad Somani, partner and head of infrastructure for the Asia-Pacific at KPMG, said fixed‑price contracts act as a guard against fluctuating fuel prices, making them particularly attractive in volatile market conditions.
“That said, there are trade‑offs. While fixed plans offer stability and make budgeting easier, customers may miss out on potential savings if market prices fall,” he said.
Somani added that electricity retailers may also be offering plans at a premium during periods of high uncertainty.
Rystad Energy senior consultant David Chew said some households may benefit from the regulated tariff, while others could prefer electricity plans.
“I think the electricity retailers story is a bit like that of telcos,” he said. “Choose what you are looking for at the price you are willing to pay. It is household-dependent, based on what would bring most value.”
Source : https://www.straitstimes.com/business/should-i-change-the-way-my-household-buys-electricity
