Figuring out how much energy you use and how much it will cost has just gotten a tad bit more interesting with the Open Electricity Market (OEM) in Singapore.
However, when you break it down, it will all seem much simpler. Basically, the OEM offers you the chance to choose your own electricity provider who provides electricity plans at rates which differs from the state-regulated tariff – which affects your cost per kWh.
To understand how different components becomes part of a larger monthly bill, follow the article through.
How is My Energy Bill Calculated?
All equipment and appliances in your home that uses electricity have differing electricity consumption rates. To derive your bill, simply multiply the quarterly tariff rate with your cumulative electricity consumption (kWh). For Q2 of 2019, electricity tariff is at 24.39 cents/kWh, when GST is included.
You can see this on a smaller scale, by calculating the cost of using just one appliance for the duration of your bill period – using the following formula.
Appliance Power Consumption rate (kWh) Appliance Power Consumption rate (kWh) X Hours used X Cost (kWh) X Days.
For instance, consider an electric fan which has a power consumption rate of 0.07 kWh. On average, you will use it for 10 hours daily with the cost set at 24.39 cents/kWh. For the month of April in 2019, there are 31 days.
Therefore, the monthly cost of using the fan would be:
(0.07 kWh) x (10 hours) x (24.39 cents/kWh) x (31 days) = 529 cents = $5.29
Do note that this bill attributed to an electric fan’s usage might change based on differing consumption, and tariffs which changes in Singapore every three months.
How the OEM Changes One’s Electricity Bill?
The OEM with its 13 electricity retailers offer a wide choice of plans for consumers to choose from. Currently, retailers offer 2 standard plans to customers.
The first plan – Fixed Price Plan – charges you a fixed price throughout the duration of the contract (e.g. 6 months, 12 months, 24 months), independent of the changes to regulated tariffs. No matter the fluctuation of tariffs every quarter, you would pay at the same rate.
The second plan – Discount-Off-the-Regulated-Tariff Plan– provides you with a fixed discount on the prevailing regulated tariffs. Therefore, your bill will always be x% cheaper than sticking with SP Power.
An Extra Factor Affecting Bills – Transmission Loss Factor
The Transmission Loss Factor (TLF) is applied at metering points to account for power lost when it is transmitted through the grid network; either via heat or other forms of energy. Energy lost through this process are still considered delivered energy.
A consumer may be billed in two ways – metered and loss-adjusted. Metered customers are not affected by costs associated with TLF while loss-adjusted customers have their consumption scaled up by the TLF.
At the current delivery voltage of 230V, the TLF is set at 1.031651. Now consider two cases through two billing methods.
For both cases, their power consumption per month is estimated to be 200kWh, with Q2 2019 tariffs considered.
Metered Bill:
(200kWh) x ($0.2439/kWh) = $48.78
Loss Adjusted Bill:
(200kWh) x ($0.2439/kWh) x TLF = $48.78 x 1.031651 = $50.32
Many retailers in the OEM absorb the TLF for consumers, including Ohm Energy, Geneco by Seraya Energy. To identify if TLF is absorbed for a plan, visit the retailer’s website to know more.
With so many plans to choose from, do compare and consider various prices and rates of electricity retailed by one of the leading electricity providers in the OEM before making the switch.
