There are a few things to know about the tariff rate for electricity in Singapore. The first thing would be that there is a regulated tariff that is calculated using the guidelines from EMA and there is a preferential tariff.
Starting with the regulated tariff, that is the only tariff that is offered by Singapore’s largest electricity retailer, SP Services. The company has been on a decreasing market share trend because independent companies offer a better tariff. For the regulated tariff, consumers get to see increases or decreases each quarter. The regulated tariff is calculated and is being billed for 3 months after which a new tariff is calculated for the next 3 months.
Looking at the unregulated market, things are a bit different. Even if an independent company buys electricity from the same producer as a company that offers the regulated tariff, they can sell it to consumers at a lower price. Some of the things to know about tariff rate is that prices can be negotiated between retailers, transportation infrastructure owners, and electricity producers.
If for example an independent company can negotiate lower prices from their suppliers and practice lower profit margins, the consumer ends up with a lower bill when compared with the regulated tariff.
The thing to take home is that if you are getting electricity as a home user at the regulated tariff, there is an opportunity to save money. You can get a lower tariff if you are switching to a new retailer or if you are renewing a contract. Usually, independent retailers offer fixed tariffs for longer periods than the regulated ones which is valid for just 3 months.
You can get a lower tariff for 6 months or more which means that you are guaranteed to save money. What you should do is to compare tariffs offered by multiple retailers and decide which company offers you a better deal.
