Three Factors You Should Consider While Switching Your Energy Supplier

Wanting to pay less for electricity is a powerful motivation to switch energy supplier Singapore. But that isn't the only reason to move. And price shouldn't be the only factor to consider while making a switch. There are a few other equally important issues to keep in mind.

1. How Do You Pay For Electricity?

Paying your electricity bills by direct debit or bank transfers is convenient and quick. It also protects you against forgetting to pay your bills, and then being charged a fine or penalty. You can set up monthly or quarterly arrangements with your bank to automatically debit your account for your electricity dues. Many energy supplier Singapore will offer you a rebate or discount for such payments, which helps you save money.

2. Check Details of Your Contract

Before signing up with a new energy supplier Singapore, make sure there aren't any hidden clauses which will surprise you later. Details of your contract will vary depending upon the type of tariff plan you opt for. There are fixed, capped and other tariff plans available. Do your research and learn about the details of the type you sign up for.

On a fixed tariff plan, you agree upon a specific rate for electricity consumption for a set period. Exiting this deal early will impose a penalty by way of a cancellation fee. Typically this is high enough to wipe out any savings you'll enjoy by making the switch.

In some contracts, you will be accepting to continue with your energy supplier Singapore for a certain period of time beyond when the special discounted rate or fixed tariff ends. Leaving earlier than this period will force you to pay a fine.

3. Understand Fixed and Variable Tariffs

A fixed tariff locks you in to a specific rate for electricity throughout the period of your contract. This safeguards you against future hikes in prices. At least for a certain period of time, you will be guaranteed a fixed rate for the electricity you consume. On the other hand, you will not benefit in case prices fall.

If you are convinced that electricity prices are likely to come down in the future, then you should choose a variable tariff or a capped rate tariff. The variable rate tariff will mean that your electricity consumption is billed at applicable market rates. This will provide you with cost savings if the rate drops, but also open you to the risk of paying more if prices go up.

Capped rate means that you will not be charged a rate higher than your agreed upon cap, for the duration of the contract. So you will know the maximum amount that you will pay for your electricity usage.