The nationwide extension of the Open Electricity Market (OEM) in Singapore has allowed homeowners and businesses throughout the island to choose who they want to buy electricity from. They can either continue purchasing from the predominant SP Group or they may switch to a retailer of their choice which matches their requirements.
An essential factor while deciding on a retailer is on the monthly savings one could enjoy on their electricity bill after switching. Through this article, electricity consumers will know how their electricity bills are computed.
Does the Choice of Price Plan Affect the Electricity Bill?
Certainly. The wise choice of a suitable price plan may mean a difference of a few dollars in one’s monthly electricity bill. At present, retailers offer 2 standard plans to customers. The first plan, called the Fixed Price Plan which assures customers a fixed price throughout the duration of the contract regardless of quarterly changed to regulated tariffs.
The other plan, called the Discount Off the Regulated Tariff Plan provide customers with a fixed discount on the prevailing regulated tariffs.
What is the Basic Formula for Bill Calculation?
It is simple. Just multiply the quarterly tariff with your electricity consumption (kWh). As of Q2 of 2019, electricity tariff stands at 22.79 cents/kWh, excluding 7% GST.
For instance, consider a television unit which operates for 0.5 kWh of energy per day. Per month, assuming it has 30 days, 15 kWh of electricity would be consumed.
At a rate of 22.79 cents/kWh, the monthly cost for using the television would be $3.42.
What Other Factors Affect This Bill Calculation?
There is another factor that affects the computation of electricity bill, which is the Transmission Loss Factor (TLF). Basically, a consumer may be billed in two ways – metered and loss-adjusted. While the former ignores the TLF, the latter gives due charges consumers for it.
Electricity in Singapore is delivered at 230V. At 230V, the TLF is set at 1.031651 as of April 2019. Now consider two cases through two billing methods.
In both arrangements, a household’s or business’ monthly power consumption is estimated to be 400kWh, charged at the current quarter’s tariff.
Bill Amount = (400kWh) x ($0.2279/kWh) = $91.16
Bill Amount = (400kWh) x ($0.2279/kWh) x TLF = $91.16 x 1.031651 = $94.05
One can see a difference of $2.89 dollars in this very example. Thus, in case of loss adjusted arrangement, the bill amount inevitably increases. However, do note that some electricity retailers absorb cost related to TLF, including Ohm Energy and Geneco by Seraya Energy.
The Energy Market Authority’s decision for a countrywide extension of the OEM in Singapore has seen tremendous benefits for locals. While there are a range of plans offered by 13 different retailers, one has to understand their monthly electricity bill before deciding on a plan that fits their consumption pattern.
Click the following to compare a list of plans from a trusted electricity retailer in the OEM – It will definitely contribute to your business’ finance-saving efforts.