Singapore electricity retailers up offerings to meet higher demand amid Middle East conflict

Singapore electricity retailers are increasing their offerings to meet rising demand as households seek greater certainty around their power bills due to the Middle East conflict. According to the Energy Market Authority (EMA), the share of households on fixed-price plans increased from around 36.6% in February to 38.4% in September.

Meanwhile, the proportion of households opting for the regulated tariff through SP Group fell from 63.4% to 61.6% over the same period. Only less than 0.1% of households purchase electricity at wholesale prices. The spokesperson from the EMA suggested that the surge in fixed-price contracts could be due to consumers trying to insulate themselves from potential higher tariffs and the formation of new households.

Electricity tariffs set by grid operator SP Group, regulated by the EMA, have been rising since the US and Israel struck Iran on February 28. The current tariff, reviewed quarterly, is S$0.3191 per kilowatt-hour, the highest level to date. Retailers have responded to this increased interest in fixed-price plans as households strive for more stability in their power bills.

Geneco, Singapore's largest residential electricity retailer, launched a fixed-price plan promotion after the Q3 tariff hike, offering an additional S$200 rebate to SP Group customers who switch over. PacificLight Energy introduced a discount-off-tariff plan in July, providing an 18% discount off the regulated tariff, while Keppel Electric brought back its Suresave discount-off-tariff plan with a 12% discount rate, no contract lock-in, and customers able to select a service start date from October 1.

Senoko Energy reported a growing interest in fixed-price plans amid heightened attention on energy prices, while Tuas Power noted a sustained increase in customer sign-ups, with most contracts for more than two years.