You may have come across recent articles in the newspapers warning Singaporeans to brace for higher electricity bills.
In one such article, customers with various Retailers, have reported having faced steeper price increases when they renew.
In simple terms, we will help you further understand the underlying reasons behind this rising price trend. We will also explain the key features of iSwitch signature price plans so that you can select the right plan that meets your needs for your home or business.
3 Reasons Why Electricity Prices In Singapore Will Likely Continue To Rise
1. Increase in Demand and Price of Natural Gas
Natural Gas is used to generate 95% of the total electricity in Singapore. Its demand has picked up sharply from the record drop last year due to the Covid-19 pandemic.
This has led to a higher cost of electricity production and hence the electricity bills of consumers in Singapore.
2. Decrease in Power Supply Cushion
According to the Energy Market Authority (EMA), Singapore would need new power generation capacity as early as 2025 with some power plants nearing retirement. The aging generation plants mean there are more unplanned outages which reduce the supply of power available to meet demand.
This has resulted in recent spikes in the Uniform Singapore Electricity Price (USEP). The USEP is the price at which all Electricity Retailers buy from the wholesale market. The increase in wholesale purchase cost will have an impact on electricity costs to households and businesses.
3. Projected Increase in Electricity Demand
The Energy Market Authority (EMA) through its Singapore Energy Market Outlook 2020 has projected the demand to grow between 2.5-3.1% over the next ten years. These take into account various factors, including, changes to population, temperature, projected Gross Domestic Product (GDP) growth rates, and projected demand from new high-growth sectors such as data centres.
The increase in demand coupled with the reduction in power supply mentioned earlier would mean customers would be subjected to higher electricity prices.
[Source: EMA- SEMO 2020 report]
What Price Plan to Select when Your Contract is up for Renewal
Here, we explain the key features of the two common price plans that iSwitch offers, so that you can make an informed decision on selecting the right plan that suits your need; especially now that you have a better understanding of the reasons behind the expected higher electricity price market outlook.
“Chope” the Rate Plan:
iSwitch’s “Chope” the Rate plan offers a fixed rate for your contract period regardless of the market movements. This meant cost certainty for your home and business. You get to better manage your household budget.
Super Saver Discount Plan:
This plan offers a guaranteed percentage discount to the Regulated Tariff that is set by SP Services upon approval by the Regulator (EMA). This means you get to enjoy a guaranteed discount to the Regulated Tariff that moves with market conditions on a quarterly basis.
“Chope” your Fixed Rate or Secure your Guaranteed Discount With iSwitch Today!
At iSwitch, we are committed to helping businesses and households in Singapore save on their monthly electric bill. While the regulated tariff is likely to rise in the near future, you can still secure for yourself a favourable rate and discount today.
We have helped over 100,000 residential households and 6,000 businesses save on their monthly electric bill and we look forward to helping you!
Learn more about our residential price plans here.
Running a business?
You can check out our range of business price plans here.
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