Ever since the Open Electricity Market (OEM) launched on May 1, 2019, switching from SP Group to a new electricity provider has become a savvy move for most Singaporeans. If you’re still with SP Group, it’s time to consider making the switch and enjoying some significant savings. Here’s why:

Why Switch from SP Group?

Simply put, it’s all about the savings. SP Group currently charges 32.47 cents/kWh (with GST), a rate that fluctuates quarterly. When you look at the alternatives, every other provider in Singapore offers a lower rate, often with locked-in prices for one to two years, simplifying your budgeting process. Here’s a quick comparison:

*Rates are for a 12-month plan from Sembcorp and the quarterly rate from SP Group for April to June 2024.

Choosing a new provider could mean more predictable bills and lower costs, making it a financially sound decision.

Is SP Group Pricier?

As the national grid operator, SP Group’s role is to ensure reliable electricity supply, not necessarily to offer competitive pricing like other retailers in the OEM. Their rates reflect the long-term costs of producing and delivering electricity along with grid maintenance, which is why switching could be more cost-effective for you.

Getting Your Security Deposit Back

Remember the security deposit you paid to SP Group? Once you switch, it will automatically offset any remaining charges. The surplus, if any, will go towards your other utility bills from SP Group, or you can request a refund if you prefer.

Analyzing Cost Savings Over Time

While the immediate monthly savings from switching providers might seem modest, the cumulative effect over the course of a contract can be substantial. Consider this scenario:

• Example Calculation: If you consume an average of 500 kWh per month, switching from SP Group’s rate of 32.47 cents/kWh to Geneco’s 29.53 cents/kWh saves you about 14.7 SGD per month. Over a 24-month period, that amounts to approximately 352.8 SGD.

Long-term Price Stability

One significant advantage of choosing a fixed-rate plan from an alternative provider is the price stability it offers, which can be particularly valuable in a volatile energy market:

• Fixed vs. Variable Rates: SP Group adjusts its tariffs quarterly based on fuel costs, which can fluctuate widely. Fixed-rate plans from other providers protect you against such fluctuations, making household budgeting more predictable.

Environmental Considerations

For the environmentally conscious, switching to a provider that offers green energy plans can also align with your sustainability goals:

• Green Energy Options: Many electricity retailers now offer plans that include a percentage of energy sourced from renewable resources. Supporting these plans not only helps reduce your carbon footprint but also promotes the growth of renewable energy in Singapore.

About Submitting an Electricity Meter Reading

Switching providers? You’ll be asked for a meter reading. It’s not mandatory, but it’s wise to comply to ensure your bill accurately reflects your usage. You can easily submit this through the SP utilities app.

What’s an AMI Meter and Do You Need One?

AMI meters, which record consumption in real-time, are the future of energy measurement in Singapore. These are being rolled out progressively at no extra cost. If you’re eager to get one sooner, it’s possible for a fee, but generally unnecessary.

Why Referral Hippo Recommends Switching

Referral Hippo is all about making savvy decisions that benefit you in the long run. Switching your electricity provider under the OEM is a prime example. Lower rates, predictable bills, and efficient service are just a few clicks away

Use the referral code WT4VWMLY when you sign up with Senoko Energy and get an additional $20 bill rebate!

You can also check out our guide about Senoko Energy at https://referralhippo.com/2024/04/13/why-senoko-energy-is-possibly-the-1st-choice/

Still have friends or family sticking with the pricier default? Share this guide and help them unlock potential savings!