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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

 

EMA Roadshow

Open Electricity Market Roadshow

Westgate Mall Roadshow – Open Electricity Market Jurong Launch

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 with over 1,500 attendees visited the event to understand more of the benefits of switching.

Northpoint City Roadshow – Open Electricity Market Zone 1 Launch

iSwitch took part in EMA’s Open Electricity Market Roadshow held at Northpoint City on the 1st and 2nd December 2018. To celebrate the Christmas and holiday season, we brought in our very own Santa Claus to spread some seasonal cheer with bill rebates as well as a ‘spin-the-wheel’ event for attendees to enjoy even more prizes. This event was held to commemorate the zone 1 launch of the Open Electricity Market where residents with postal code 65 to 78 are eligible to switch from SP services to their preferred retailer, iSwitch.

The Open Electricity Market Zone Roll-out Phases

Wondering when will it be your turn to switch and enjoy guaranteed savings as well as fabulous lifestyle perks? We have you covered with the Open Electricity Market roll-out phases, expect more roadshows to happen during these phases as well!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zone 1: West & North-West Singapore (1st November 2018)
Postal Codes starting with 58 – 78

Zone 2: North-East Singapore (1st January 2019)
Postal Codes starting with 53 – 57, 79 – 80 and 82 – 83

Zone 3: East Singapore (1st March 2019)
Postal Codes starting with 34 – 52 and 81

Zone 4: Central & South Singapore (1st May 2019)
Postal Codes starting with 01 – 33

That means if you live in Bukit Panjang (Zone 1), you can immediately switch to a retailer today while if you stay in Marine Parade (Zone 4), you will be available to switch come 1st May 2019.

Before You Switch, Understand Our 2 Standard Price Plans

Yes, we know you are excited about switching but let us run through the 2 main plans you need to know to help maximise your savings!

iSwitch’s Chope The Rate Plan (Fixed Price Plan)

fixed-rate-electricity-price-plan

If you are looking to secure a fixed rate for your electricity that won’t rise no matter how high the electricity tariff gets? Then our fixed price plan is perfect for you.

This plan will allow you to lock in a rate that is guaranteed not to move throughout the duration of your contract. You will not suffer any bill shocks and you will have much more security in terms of your household budget and can easily control your bill by using less electricity if necessary.

iSwitch’s Super Saver Discount Plan (Discount Off Tariff Plan)

discount-off-tariff-electricity-price-plan

Looking to purchase your electricity in a hassle-free manner without the need to monitor the oil market or lock in a price and commit to it? If that sounds like you then our discount off tariff plan is just right for your lifestyle.

This plan guarantees you savings off the regulated tariff to as much as 20%. This means whether the tariff rises or falls, you will be enjoying savings no matter what, confirm plus chop!

It Just Gets Better With Our iPromo-iPad Price Plan

iswitch-ipromo-ipad-electricity-price-plan

What can be better than guaranteed savings? Walking away with an iPad, that’s what!

With our iPromo-iPad price plan, you will not only enjoy a guaranteed 5% discount off the regulated tariff but also a complimentary iPad.

But hurry up ok, this is limited to the 1st 500 sign-ups.

iSwitch Gives You Great Electricity Price Plan Perks

But that’s not all, all our plans come with lifestyle benefits and perks that include:

Free AIA personal accident protection coverage
Free air-conditioning servicing
1% cash rebate when you pay your bills using your POSB Everyday Card
Green Certified Electricity at no additional cost

What Is The Open Electricity Market?

Since 2001, Singapore’s Energy Market Authority has been deregulating the electricity market in phases and since April of this year, residents in Jurong could choose between the different electricity retailers for the best price plan in the market that suits their household. The result is the Open Electricity Market, where all residents in Singapore will eventually be able to switch over from SP Services to a licensed electricity retailer of their choice.

Who Is EMA?

EMA is the Energy Market Authority of Singapore, a regulatory body that promotes effective competition in the energy market. EMA helps to organise events and roadshows for consumers to learn more about the Open Electricity Market and how to maximise the benefits when switching.

Why Choose iSwitch?

iSwitch Energy is a licensed electricity retailer in Singapore and together with our team, we have more than 30 years of electricity retailing and energy trading experience across the Asia Pacific region. We are one of the approved Open Electricity Market retailers and only such approved retailers are able to participate in the electricity roadshows and events held by EMA.

We have the experience, the stability and the expertise to bring you the reliable and affordable electricity supply you deserve for your household needs.

Looking To Sign Up Today?

View our price plans here

You can also sign-up at a roadshow close to you. Discover our locations here