$$$ KPO and CZM $$$: Cheapest Electricity Plan - SP Group Wholesale Electricity

Tuesday, May 19, 2020

Cheapest Electricity Plan - SP Group Wholesale Electricity

By now, most would have already switched to one of the OEM electricity retailers. Moving away from the SP Group regulated tariff rate (23.02 cents/kWh) is a no brainer as there will definitely be significant savings. However, there are so many things to consider, fixed/variable plan, the duration of the contract, rebates/incentives, etc. This plan I am going to share/introduce is not a widely marketed variable plan which has no contract and is definitely the cheapest electricity plan in Singapore - SP Group Wholesale Electricity.

Think of all the OEM electricity retailers as the middle man, the OEM electricity retailers are either buying or generating the electricity at the wholesale rate and then packaging them as various plans to sell to the consumers (us) for a profit. Hence, the cheapest rate can only be the wholesale rate. Let me show some of my electricity bills.

April 2020


361.83 kWh - $46.87 which translate to 12.95 cents/kWh


Compare that against all the other electricity retailers and you can see how much additional savings we are getting in just 1 month.

March 2020


222.84 kWh - $33.37 which translate to 14.97 cents/kWh

Feb 2020


169.19 kWh - $28.37  which translate to 16.77 cents/kWh

The above are just rough estimates as I included other fees such as GST, meter reading, etc. The more accurate way is to remove them and compute but it is already lower even when I included those miscellaneous fees. On a side note, you can see the increase in electricity for the month of April as both of us started to work from home.

End of the day, one might still argue that the price of the wholesale rate may exceed those fixed plans. When that happens, the electricity retailers will be making a loss and once your contract is over, it will be higher too or worst case, they will close shop before that happens. lol.

My recommendation would be to ignore those little rebates/incentives the electricity retailers are using to attract new customers and locking them down with months/years of contracts. You can refer to the SP Group Wholesale Electricity Fact Sheet for more information. Interestingly, you will see this clause - SP Group is not allowed to offer any incentive. Imagine if they did, they will definitely be the clear winner.

Although this article might be a bit late, it will still be applicable to those that are still deciding or new BTO homeowners. Hope you find this useful!

Do take a look at this article too - Cheapest Electricity Plan - SP Group Wholesale Electricity Part 2

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6 comments:

  1. I'm currently using Tuas Power with contract ending in Oct. I saw your post and want to switch to SP Group Wholesale Electric Price but I can't seem to figure out how to sign up despite logging in to the SP Utilities Portal (both on app and website).

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    Replies
    1. Hi Jason,

      Right, I just assumed it will be easy to sign up and did not give any instruction on how to do so. Haha. Go to the SP Utilities Portal, on the left hand side menu, click on "Buy at Wholesale Electricity Price" (https://services.spservices.sg/#/dashboard/buy-wholesale-landing) and read/follow through to sign up.

      Hope this helps!

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  2. it sounds very cheap compared to other retailer. Any hidden cost?

    ReplyDelete
    Replies
    1. Ops. It seems I have missed your comment. My bad. Anyway, you are looking at my bills already, do you see any hidden cost?

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  3. If the SP Wholesale Electricity Plan is not satisfactory (e.g. price is too high), is it easy to switch back to SP regulated tariff?

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    Replies
    1. There's no way the SP Wholesale Electricity rate is going to be more expensive/higher than the regulated tariff rate. If you are considering switching to other OEM for fixed rate as an example, you can do it anytime because there is no contract. I have not switch before but I would think it should be relatively easy.

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