Why Is It Important to Look Beyond Advertised Rates When Choosing an Electricity Retailer in Singapo
When you are a consumer, it is important to have the right to choose so that you get the best products for your needs. With the launch of open electricity market in Singapore, Singaporeans now have the power to choose from more than 10 electricity retailers.
Choosing power companies in Singapore is an important decision, and being a smart Singaporean you should always start with the important decision of which electricity retailer in the open market is the cheapest.
Which is the cheapest electricity retailer in Singapore?
In Singapore, there are two different ways the electricity retailers structure their price plans. The first plan is a fixed price for the electricity you use over the period of 6 months, 12 months, or 24 months. The second way is to set a discount off the electricity tariffs that SP group. This plan charges every quarter and has steadily risen in popularity in the past 2 years. The first option amongst the two is the cheaper option as it is not pegged to another rate.
Compare cheapest discount off the regulated tariff electricity plans
Even though these tariff plans might seem to have a similar structure to the previous one in terms of having different pricing for different durations, you should remember that there are discount off the usual electricity tariff charged by SP group. It was in the news that electricity tariffs had risen for a fourth straight quarter and have been trending since then.
On the basis of how long your contract is, you may find various companies that offer big discounts off the electricity tariff. This is the reason you can’t just look at the cheapest electricity retailers. Instead look for energy companies in Singapore that consistently offer you lower rates and find out how they are able to.
Which retailers absorb transmission loss factor charges?
You might have noticed the asterisk sign on the rates advertised by some of the power companies in Singapore. This is because of the additional cost known as transmission loss factor. When electricity is delivered to your home, a small percentage of it is lost in transmission. While many electricity retailers pass on the cost to you, there are some retailers who don’t and absorb the cost thus charging exactly as their advertised rates.
Find out if the retailer generates electricity on their own
In a competitive environment, it is important to find out if the retailer is generating electricity of his own or just buying the excess electricity from the generators for reselling. Choose a retailer whose priority is to make sure that you receive the best deal for their electricity.
Explore the web for more information and suggestions on choosing the right energy companies in Singapore.
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