SINGAPORE – Some electricity retailers have offered new promotions or plans as concerns over high energy costs due to the Middle East conflict prompt more households to lock in their electricity rates through fixed-price contracts.
The Energy Market Authority (EMA) told The Straits Times that households on fixed-price plans rose from around 36.6 per cent on Feb 1 to 38.4 per cent on Sept 1.
Meanwhile, the share of households buying electricity at the regulated tariff through SP Group declined from 63.4% to 61.6% over the same period.
Less than 0.1% of households buy electricity at wholesale prices.
An EMA spokesperson said: “The increase in households taking up fixed-price contracts may be due to a confluence of factors, such as consumers’ efforts to insulate themselves from the potential of higher tariffs, and new households formed during this period.”
The electricity tariff set by grid operator SP Group and regulated by EMA, which is largely influenced by energy costs, has been rising since the US and Israel launched strikes on Iran on Feb 28.
The tariff, which is reviewed quarterly, is currently 31.91 cents per kilowatt-hour – which is the highest level to date. The rate for the fourth quarter starting Oct 1 will be announced later this week.
Increased interest
Retailers told ST they have responded to the increased interest in fixed-price plans as households seek more certainty around their power bills.
Geneco, Singapore’s largest residential electricity retailer serving more than 175,000 households, introduced a fixed-price plan promotion after the third-quarter tariff hike was announced. It offered an additional $200 rebate to SP Group customers who switch over.
Sign-ups jumped by around three to five times in recent months, which its CEO Lim Han Kwang attributes to customers wanting to “better plan their electricity spending without being directly exposed to fluctuations in the regulated tariff during the contract period”.
PacificLight Energy, which has also seen more interest in its fixed-price plans, has moved to expand its range of offerings for households.
It introduced a discount-off-tariff plan in July, which offers customers an 18% discount off the regulated tariff, with a daily charge of 55 cents a day, factoring in GST.
General manager Geraldine Tan said the new plan will provide households with “greater flexibility and a wider range of choices to manage their electricity costs”.
Meanwhile, Keppel Electric has brought back its Suresave discount-off-tariff plan that had been removed from its website in mid-March. It had offered a no-contract lock-in option featuring a 15% discount on the regulated tariff and no early termination fees.
The plan was made available again in June, with customers allowed to select a service start date from Oct 1. It now promises 12% off the regulated tariff rate, with no contract lock-in for customers currently with SP Group.
Keppel Electric, which described the plan on its website as “simple, transparent, and always below tariff”, declined to comment when approached by ST.
Senoko Energy’s head of commercial and corporate communications James Chong also observed an increase in sign-ups and enquiries from existing customers seeking early renewal of their fixed-price plans.
“While our product offerings have remained structurally unchanged since the conflict in the Middle East began in February, we have seen growing interest in fixed-price plans amid heightened attention on energy prices,” he said.
Tuas Power similarly observed that the increase in customer sign-ups, which began in March, has been sustained to date.
“Most contracts signed are for more than two years, reflecting customers’ expectations going forward,” said Lim Sam San, senior vice president of its retail business.
Sembcorp Power, the sixth retailer that currently offers plans for households, did not respond to ST requests for comment.
Flo Energy, which is also listed as a retailer on the Open Electricity Market, currently does not supply electricity to households, but plans to do so in 2027.
