Choosing an electricity contract can get complicated at times, but it doesn’t have to. At first glance, some offers may seem like irresistible, as Retailers often show tantalising offers that entice us the most. But are they too good to be true? It always pays to make an informed decision. Don’t fall prey to bill shocks and unfair clauses. Here’s how to get the most out of your new electricity contract.
1. Compare prices with other Retailers
Compare prices to avoid overpaying, buying a plan that doesn’t suit your needs, or missing out on a better deal and promotion. With Electrify, comparing electricity rates has never been more hassle-free. Simply provide us with your consumption details and create an account, and you’ll find yourself pampered with options from different Retailers. So, what’s your excuse?
2. Read the contract
Try to recall the last time you read the Terms and Conditions of a contract prior to signing it (apart from your employment contract, of course). Truth is, many of us don’t read the fine prints of any contract, out of habit and laziness. This could be risky, as we may not be aware of the unfair clauses or hidden charges that are not communicated verbally. And it’s especially true when it comes to buying electricity—a commodity that we just can’t live without.
3. Check for hidden charges
Before committing to a contract, it’s good to be vigilant and confirm with your Retailer the type of package being offered to you: bundled or unbundled.
Bundled prices often refer to the inclusion of any third-party charges into your bill, along with the regular electricity rates. These charges can include a lot of service charges, like the Transmission Loss Factor (TLF), Carbon Tax, and Market Development and System Charge (MDSC), which have been covered here. Apart from that, there may also be other costs such as AMI metering charges and retail service charges that are hidden deep in your bill.
Unbundled, contrarily, charges these services separately. Though it adds up to about the same price as bundled pricing, it still pays to just be more aware. You wouldn’t want to encounter instances where you sign up on a seemingly cheaper package under the impression that the price quoted is the final amount you will be paying, only to realise much later that you are on unbundled pricing.
4. Read the termination clauses
There may come a time where you are forced into premature termination of a contract due to unforeseen circumstances. This typically results in a penalty fee of anywhere between one month of your energy bill up to 40-50% of the total bill of your remaining months; it differs from Retailer to Retailer. In cases like these, it’s best to first check the termination clauses on the Fact Sheet before committing, to ensure that there’s still a way out for you in desperate times.
Ready to switch electricity providers? Electrify to the rescue! We are Singapore’s first retail electricity marketplace to help business and residential consumers compare electricity prices with ease and switch providers seamlessly. Visit ELECTRIFY.SG now to compare rates. No fuss, no muss!