Will Rising Oil Prices Affect My Electricity Bill?

Flip a switch and it’s there for you – electricity is a core necessity in our lives and as a result, we often just pay our electric bill without much thought…until it suddenly goes up without us knowing!The thing is, most of our household electric consumption tends to stay relatively constant over a long period of time and the moment we see an increase in our bill, blaming the retailers, electricity generators or even the government seems to be the knee-jerk reaction. However, that isn’t always true and there is a factor that dictates how high or low your electric bill will be: the oil price. Huh? What does the oil price have to do with our utility bill? Quite a lot in fact!

 

The 2 Components Of Your Electric Bill
When you are paying for electricity (the SP Services electrical tariff), you are paying for the cost of the generation of electricity or how much is needed to create it. This tariff comprises of two key components – the fuel cost and the non-fuel cost. The non-fuel cost is rather standard, it is made up of:

Power Generation Cost
The costs needed to operate power stations that include manpower, capital and maintenance costs.

The Grid Charge Cost
The cost of transporting electricity through the power grid to your homes.

Market Support Services (MSS) Fee
The costs of billing and meter reading. While these fees are substantial, they are quite fixed and don’t really change much, however, more than 50% of your electricity bill comes from the fuel cost which is highly variable and changes everyday with even possibilities of big fluctuations. 95% of Singapore’s Electricity Is Generated By Gas. And yes, you might have guessed it, our gas supply is indexed or follows closely the price of oil!

 

The Oil Markets And You
Sure, this isn’t the most exciting topic around but seeing that the oil market will determine how expensive or cheap your electricity bill is, let’s take a closer look! Oil prices are set mainly by buyers and sellers in the market and are affected by a whole host of factors that includes supply and demand of the physical oil itself – if the world experiences or believes that there is a shortage of oil at any given moment, the price of oil will start to rise, reflecting the drop in supply. Conversely, if there is a global economic slowdown and the demand for oil drops, the price of oil will also be lowered. In 2005 when oil was around $55 a barrel, Singapore’s electricity tariff was 21.3 cents/kWh.* In 2012 when oil averaged around $110 a barrel, our national electricity tariff also saw an increase to 28.8 cents/kWh.* Fast forward 4 years ahead in 2016 when the oil prices plunged down to near $53 a barrel, the electricity tariff fell right down to 21.5 cents/kWh.* As fuel costs are a major factor to our electricity prices, the Singapore government has taken steps to secure our gas supply by importing a constant stream of gas and investing and developing our Liquified Natural Gas (LNG) infrastructure and supply. That means it is highly unlikely we will ever get a big increase in electricity prices from an interrupted supply issue.

 

What We Can Do As Consumers

The important thing to know is that as consumers we won’t be able to control the price of oil and the best way to secure our electric bill would be to better understand the option plans we have in front of us. There are two types of plans that we can choose from – Discount On Tariff (DOT) or Fixed Price.

Discount On Tariff (DOT) Plans
Most electricity retailers have a DOT plan available which just means your electricity bill will be tracking the oil prices that will affect the tariff prices. When there is a rise in oil prices, the tariff prices (as well as your DOT price) will rise and you pay more, however under such a deal you will always pay less than the SP Tariff. Conversely, if the oil prices fall, the tariff prices will also drop and you pay less on your electric bill. While this leaves you exposed to the rise and fall of oil prices, many consumers choose this for simplicity without a need to monitor the oil prices to make a decision on fixing a price.

Fixed Price Plans
Fixed price plans will mean you have 100% certainty on what your electric bill will be at the end of the month regardless of whether the oil price rises of falls. This price is fixed for the whole period of your contract. While this might mean you could lose out on savings when the price of oil drops, you are also protected should the oil price rise. Fixed price plans are ideal if financial budgeting and cash flow planning are critical in your household.

*EMA Publications and Statistics

 

Open Electricity Market Roadshow

iSwitch participated in the Open Electricity Market Roadshow at Westgate Mall which was held on the 21st and 22nd April 2018. All 14 retailers were present in partnership with The Energy Market Authority to bring awareness to Jurong residents and showcase each retailers’ plans in an approachable environment. In true Singaporean fashion, the event attendees were all out to find the best bargain!

Over 1,500 attendees visited the event to understand more of the benefits of switching. It was the perfect environment for iSwitch to showcase our offerings.

The two plans that were the most popular were the iSwitch Trial and “Chope” the rate.

  • iSwitch Trial – a short term contract with maximum savings.
  • “Chope” the rate – a fixed rate for 2 years.

iSwitch also launched a new promotion plan exclusively for the roadshow – the iPromo, which allows customers to sign up with iSwitch and receive a complimentary iPad (worth $498) or $200 Capitaland Voucher. What made the iPromo stand out was the upfront cost savings in the form of a gift.

The event was a great opportunity for consumers to speak directly with iSwitch team and get individual advise on which plan best suits their home energy needs. We look forward to the next roadshow on 7th-13th May at Jurong Point.

iSwitch launches into the Open Electricity Market in Jurong

iSwitch is proud to be one of the participating retailers approved by the Regulator, for the soft launch of the Open Electricity Market (OEM), launching today. We see the liberalisation of the OEM as a very exciting opportunity focusing on empowering customers to easily Switch and Save.

We have revamped our website (www.iswitch.com.sg) to enable customers to compare price plans and sign up effortlessly. Our customers will have access to online account management via our Portal and mobile App where they can easily compare their consumption with similar dwelling types, view and pay their bills and refer their friends. Customers can choose to pay their bills online via credit cards, internet banking, GIRO or simply visit the nearest AXS Kiosk station – whichever is more convenient for them. Customers will be able enjoy further savings through a Rewards Points Scheme by referring friends and family using their unique code. We have made the process of saving on energy fast and efficient!

We have designed a variety of cost effective price plans to suit customer’s usage patterns and lifestyle needs. We allow customers to choose from different options and discover which plan works best for them. Our iSwitch2Green plan caters to the environmentally responsible consumer, offering 100% carbon neutral electricity through the purchase of UN certified carbon credits. We also offer a Night-Time Discount from 11pm-7am, so consumers can enjoy the biggest savings when they use the most electricity.

We recognise the importance of partners to bring value to our customers. We are pleased to announce iSwitch has joined in collaboration with DBS Bank. This alliance, in time for the soft launch of the OEM in Jurong, will allow us to showcase our electricity price plans for the public in an online “Marketplace”. DBS/POSB account holders will be able to easily be able to choose a plan and set up their payment method in one seamless submission.

Jeremy Soo, DBS Head of Consumer Banking Group (Singapore) said, “DBS Electricity Marketplace exemplifies how we are reimagining banking, using digital technology and innovation to make life simpler for our customers. Through our partnerships with alternative electricity retailers, we want to enable our customers to enjoy savings on their bills easily. Our insights also indicate that consumers want a fuss-free process to sign up for other electricity retailers, and we have made it easier and convenient for them to make the switch with just a few simple clicks on DBS/POSB digibank.”

Please visit the DBS Marketplace to sign up.

 

Dulwich-College

Dulwich College (Singapore) commits to 100% carbon neutral electricity

Dulwich College (Singapore) commits to 100% carbon neutral electricity Equivalent carbon offset of planting more than 35,000 trees Sets an example for the next generation

SINGAPORE, December 2017 – Dulwich College (Singapore) identifies that leading by example is the way of the future for environmental sustainability. Climate Change and Sustainable Development have become an important part of the teaching curriculum across Singapore. The Ministry of Education (MOE) encourages both government and private institutions, from primary to tertiary levels, to include environmental content in their academic studies and extra-curricular learning programs.

Dulwich College (Singapore) has become the first educational institution to take up iSwitch Electricity Retail’s newly launched “iSwitch2Green” product, allowing them to fully offset their carbon emissions via Carbon Credits. This program aims to look beyond just electricity costs savings, as it brings about environmental sustainability and awareness.

During their electricity contract period with iSwitch, Dulwich College (Singapore) will be offsetting a total of 7,000 tCO2e carbon emissions for 16,200 MWh of electricity used. This initiative provides the equivalent environmental benefit of planting more than 35,000 trees.

This promotion of carbon awareness also comes at a time when Singapore is preparing for a Carbon Tax, to be introduced in 2019. Using certified carbon credits to offset electricity emissions helps fund additional global renewable projects such as wind farms and solar projects.

As part of the program, iSwitch has also committed to contribute to the college’s teaching syllabus by providing educational contents and material, with the aim of explaining to the students and wider community the benefits of what has been achieved.

“Dulwich College (Singapore) believes in creating a sustainable and low carbon global community. By choosing to procure 100% carbon neutral electricity until the end of 2020, we are not only supporting renewable projects such as wind farms but also setting an example for our 2000 students. This initiative will filter down through to the next generation and help in the education and promotion of sustainable initiatives.” Dulwich College (Singapore) Headmaster, Nick Magnus.

“The leadership shown by Dulwich College (Singapore) in becoming one of the first schools in Singapore to commit to 100% carbon neutral electricity is exceptional. Their commitment to raise the level of carbon awareness within their own community and beyond provides a powerful message to its own students and an example for other institutions to follow.” iSwitch General Manager, Andrew Koscharsky.

For more information please visit Dulwich College (Singapore)

About iSwitch2Green – Carbon Efficiency Program

The “iSwitch2Green” program allows you to offset your carbon emissions created by electricity consumption, through purchasing UN Certified Carbon Credits via an electricity contract with iSwitch. For more information, visit iSwitch2Green

Dulwich-College(Singapore)
Manufacturing-Solutions-Expo-2017

iSwitch exhibits at Manufacturing Solutions Expo 2017

iSwitch was delighted to exhibit at the Manufacturing Solutions Expo 2017 which was held at the Singapore Expo on 25th to 27th October 2017. It is an annual one-stop exhibition platform for products and solutions providers to showcase innovative solutions, cost-effective technologies and products from over 120 regional and international brands.

With more than 4,500 trade visitors it was the perfect stage to present how attendees can pay less for their electricity, as the manufacturing sector accounts for 40% of electricity demand in Singapore. For all the attendees iSwitch offered an exclusive privilege plan; by signing up for a 12 month contract receive the last month’s bill FREE. Furthermore, iSwitch is an electricity retailer not only committed to helping you save on your electricity bill but also helping you to offset your carbon footprint. The iSwich2Green product helps consumers to offset their carbon emissions created by their electricity consumption, through purchasing UN Certified Carbon Credits.

Other than focus on the commercial users, our dedicated team on site could share updates on the liberalisation of Singapore’s electricity market. This allowed the attendees to have more background knowledge, more confidence on the upcoming Open Electricity Market and get ready to switch when the market is open.

In short, it was a very successful event, thanks to the organizers for bringing such a one-stop exhibition platform for us to showcase our innovation Green Solutions, cost effective plans and share our insights on the future of the Open Electricity Market.