Executive Summary

The Singapore Open Electricity Market (OEM) has seen significant activity in late 2024, with consumers actively discussing contract renewals, price fluctuations, and the nuances of standard vs. non-standard price plans. Many users are grappling with the complexities of these plans, especially after experiencing rate changes and a lack of transparency from some retailers. A key concern is the discrepancy between SP Group’s tariff reductions and the fixed rates offered by retailers, which often do not reflect these drops. The community is also closely monitoring the SP tariff for the first quarter of 2025 for potential rate decreases. Recent forum discussions reveal that Geneco is a frequently mentioned provider, with users sharing their experiences with both new sign-ups and renewals.

The discussion highlights a trend where retailers are offering attractive new customer rates, but less favorable terms for existing customers upon renewal. Users are also wary of “non-standard” price plans, as these plans may include clauses that allow for price adjustments due to changes in third-party charges. The lack of transparency in these clauses is a major concern. Currently, many users are weighing the risks of locking in longer contracts (24 or 36 months) versus shorter ones (6 or 12 months), especially given the uncertainty surrounding future rate changes. One user noted a potential increase in electricity usage after switching to a new meter, raising concerns about meter accuracy. The market is still experiencing a lack of transparency and potential for retailers to not pass on SP tariff reductions to the consumer.

Key Developments

Geneco Contract Renewal Changes

Geneco has been a focal point of discussion due to changes in their contract renewal terms. As of late November 2024, Geneco reduced rebates from *SGD 20*/SGD 40 to SGD 15/SGD 30****, potentially due to high demand for renewals at existing rates. A major shift is the move from standard to non-standard price plans for manual renewals. These non-standard plans, as noted by user tylgtyee, include clauses allowing for price changes based on third-party charges, which are not transparent to the consumer.

“During renewal, Geneco switched from a standard plan to a non-standard plan. What’s concerning about the non-standard plan is that the footnotes mention electricity rates may change according to the terms and conditions of the contract. Can’t find the terms and conditions. How to renew like that if Geneco can suka suka change price? Misleading to call it fixed price plan if price can vary, right? – tylgtyee (07 Dec 2024)

Geneco confirmed via email (shared by royalmix on 11 Dec 2024) that manual renewals result in a non-standard plan where third-party charges may be passed on to consumers, while auto-renewals remain on a standard fixed-rate plan but without promo codes. This has led to confusion and distrust among users, with many expressing concerns about the lack of transparency and the potential for unexpected price hikes.

SP Tariff Fluctuations and Retailer Pricing

The SP Group’s tariff for the last quarter of 2024 saw a reduction compared to the third quarter, as highlighted by user kuti-kuti on 9 Dec 2024. However, many retailers, including Geneco and Tuas Power, did not adjust their fixed rates to reflect this drop. This discrepancy has angered many consumers who find that the fixed rates offered by retailers are not always lower than SP’s regulated tariff. Retailers seem to maintain their rates even when SP rates decrease, leading to potentially higher profits for the retailers.

sp drop but these retailers don’t reduce their rates leh, that’s wat happened to me when my contract ended in early nov and sp dropped the rates for last q of 2024. all the retailers rates remains same as before – kuti-kuti (09 Dec 2024)

The current SP tariff is at 31.72 cents/kWh (including GST) for the last quarter of 2024, as confirmed by user whuttt. Users like fanflo_08 expressed frustration at being locked into rates of 28.3 cents/kWh for quite some time, hoping for lower renewal rates soon. This demonstrates a desire for more flexibility and transparency in contract terms.

New Customer vs. Renewal Rates

Users are noticing a significant difference between new customer sign-up rates and renewal rates. For example, user Cyber_Ghost secured a 24-month contract at 28.87 cents/kWh (including GST) with a *SGD 65 bill rebate and SGD 25 eCapitaVoucher, plus a referral bonus, while existing customers are often offered higher rates. This discrepancy is a major source of frustration, with users like royalmix noting that they were offered 27.30 cents/kWh* with a smaller rebate.

you are new customer, you enjoy new customer rates! I am existing customer, offered 27.30 plus a little rebate. – royalmix (08 Dec 2024)

This strategy by retailers seems to prioritize new customer acquisition over retaining existing customers, which has led to users feeling undervalued and less inclined to renew their contracts. The lack of consistent pricing for both new and existing customers is a major concern.

Community Insights

User Experiences

Several users shared their experiences with specific retailers. User Cyber_Ghost described a positive experience signing up with Geneco, highlighting the attractive rebates and referral bonuses. User royalmix, an existing Geneco customer, expressed concerns about the non-standard plan during renewal and is now on a 12-month contract for 27.30 cents/kWh due to the risks of a longer contract. This highlights the different experiences of new and existing customers. User kendrick272 reported a high monthly usage of 1100 kWh, which he attributes to older, less energy-efficient appliances. This high usage is prompting a search for the best rates, with Tuas Power offering him 27.98 cents/kWh after GST for a 36-month contract.

I signed up last week under Get It Fix (28.87 including gst) for 24 months and get SGD 65 bill rebate and SGD 25 eCapitaVoucher, plus SGD 20 for referral from my friend. On top of that, my recurrent payment using POSB Everyday Card also get 3% cash rebates. not a bad deal. – Cyber_Ghost (07 Dec 2024)

User micromousez shared a positive experience with a non-standard plan from Tuas Power for many years, stating that no traps were encountered. However, Skoda29 mentioned a concern that water usage increased after buying a too-large washing machine, which indirectly impacts electricity bills. Hwsemb is also looking to switch from Geneco and is concerned about the 30-day notice period required to avoid early termination fees. There is a general concern about the lack of transparency in retailer contracts and the potential for hidden charges.

Tips and Recommendations

Several actionable tips and recommendations emerged from the discussions. Firstly, users are advised to carefully read the fine print, especially regarding non-standard price plans, as emphasized by royalmix. It’s recommended to compare the fixed rates with the current SP tariff before committing to a contract. Users should consider shorter contract terms, such as 6 or 12 months, to mitigate the risk of getting locked into a high rate if SP tariffs drop. It is also advisable to check with retailers about the possibility of third-party charges being passed on to consumers.

Read the factsheet carefully. During renewal, Geneco switched from a standard plan to a non-standard plan. – tylgtyee (07 Dec 2024)

Additionally, users are encouraged to monitor their electricity usage and identify potential sources of high consumption, as highlighted by kendrick272 and Skoda29. Switching to energy-efficient appliances, such as LED lights and inverter air conditioners, can significantly reduce consumption. Some users also recommend taking advantage of referral programs and payment methods that offer rebates, like the POSB Everyday Card mentioned by Cyber_Ghost. Finally, it is crucial to inform Geneco (and likely other retailers) at least 30 days before contract expiry when switching to another provider to avoid early termination fees.

Important Considerations

Consumers should be aware of the risks associated with non-standard price plans, which can lead to unexpected price increases due to third-party charges. The lack of transparency in these plans is a major concern, with many retailers failing to provide clear terms and conditions upfront. Users need to understand that the fixed rates offered by retailers do not always reflect SP tariff reductions and may not necessarily be the cheapest option. There is also a risk of being locked into a long-term contract with unfavorable rates, especially if SP tariffs decrease in the future.

One advantage of the non-standard price plan is the ability to use a promo code for a one-time bill rebate. If you prefer to remain on the standard price plan, no action is required on your part when the contract auto-renews. – royalmix (11 Dec 2024)

Users should also be mindful of contract auto-renewal clauses, as highlighted by royalmix, and ensure they take action to switch providers if they choose to do so. There is a 30-day notice requirement by Geneco when switching to another provider to avoid early termination fees. It’s also important to be aware that new customer rates are often significantly better than renewal rates. Finally, the possibility of incorrect meter readings is also a potential concern, as mentioned by royalmix, and should be monitored.

Looking Ahead

The community is eagerly anticipating the SP tariff announcement for the first quarter of 2025, with many hoping for further rate reductions. Users are also expecting more transparency from retailers regarding their contract terms and pricing. There is a growing sentiment that the energy regulator should intervene to ensure retailers pass on SP tariff reductions to consumers. Many users are also considering switching to wholesale electricity, although the risks associated with potential price spikes are a concern.

wah i see alot of u recontracting with Geneco, should i pull the trigger now or wait further till SP announce the tariff for 2025 Q1 agree, their non-standard-fixed-price clause looks confusing, but hope they’ll honor the fixed-price portion! – frekedech (23 Dec 2024)

There’s a general feeling of uncertainty about the future of the OEM market, with users questioning the value and benefits of fixed-price contracts with retailers. The demand for more straightforward and consumer-friendly options is evident in the discussions. Users are also calling for more competition and price transparency in the market. The community is closely watching for potential changes in the market and will continue to share their experiences and insights.
” – Anonymous