My Sweet Retirement Switches to Open Electricity Retailer

My Sweet Retirement 2 Comments

I am glad that the area that I am staying in is finally eligible to switch over to the open electricity market where I can choose my electricity retailer. There are currently two standard price plans which are the Fixed Price Plan and Discount Off the Regulated Tariff Plan. For the Fixed Price Plan, you pay a fixed rate throughout the contract period of either 6, 12 or 24 months. For the Discount Off the Regulated Tariff Plan, the rate you pay will change as the regulated tariff is adjusted every three months (quarterly). You get a fixed discount off the regulated tariff whether it goes up or down.

I preferred the fixed price plan for a more predictable electricity bill moving forward. Not trusting other websites that tells you which retailer offers the cheapest electricity per KWh, I did my own research. I visited the retailer’s website and compiled the information below. As you can see, iSwitch offers the cheapest electricity per kWh but there is a service charge of $5.297 per month. This means you end up paying $63.56 per year for services charges!

The rates offered by Geneco, Keppel Electric and Sembcorp are similar at 17.78 cents per kWh w/GST for a two year contract. If you didn’t know, Geneco partners with Singtel while Keppel Electric partners with M1. The telcos do offer some perks if you sign up with their partners and you may wish to check out the Telco’s website for more information.

For me, I have chosen to sign up with Sembcorp as my home internet is with Starhub. I have gotten $20 NTUC vouchers by signing up at their roadshow.

Have you switched?

Retailer per kWh w/ GST

(24 Months)

 Monthly Service Charges
Geneco 17.78 cents No
Keppel Electric 17.78 cents No
iSwitch 17.55 cents Yes
Sunseap 17.98 cents No
Best Electricity Supply 18.90 cents No
OHM 18.95 cents No
Sembcorp 17.78 cents No

April 2019 Singapore Savings Bonds is 2.18%

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The effective interest rate for April 2019 Singapore Savings Bonds (GX19040X) is 2.16% if you held it for 10 years. As you can see from the chart above, the effective interest rate has dipped further from 2.18% to a pathetic 2.16%. Nevertheless, as usual, I shall be allocating a portion of my monthly salary into safe haven as the Singapore Savings Bonds acts as a form of emergency fund when the need arises.

If you didn’t know yet, SRS applications for Savings Bonds open from March and individual limit has doubled to $200,000. I personally felt that the introduction of SRS application for Savings Bonds is an excellent initiative as the SRS currently earns a petite interest rate of 0.05% per annum. In March, I have used partial of my SRS funds to purchase the Singapore Savings Bonds for the higher interest.

If you hold a DBS Multiplier Account, you can perhaps try the hack I previously wrote about to achieve a higher interest rate payout. (Read more: Earn More Interest With DBS Multiplier Account + Singapore Savings Bonds)

 

Summary of February 2019 Transactions

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This is a short month and here we are at the end of the month again to summarize my stock portfolio again. Earlier this month, I was pretty busy with Chinese New Year activities such as spring cleaning and visiting friends and relatives. I did not make any buy or sell transaction this month. I have strictly followed my routine of purchasing the Singapore Savings Bonds. Other than using cash to purchase Singapore Savings Bonds, I have used my Supplementary Retirement Scheme funds to purchase as well since the Singapore Savings Bonds offer higher interest rate.

I shall be receiving the dividends payout from OUE Hospitality Trust, ParkwayLife REIT, CapitaMall Trust, Mapletree Commercial Trust on the 28th of February. This is additional “red packet” for me.

I have done an analysis of SPH REIT (Reviewing My Personal Analysis of SPH REIT) which I shall be monitoring closely. I am currently accumulating cash and shall enter into a position if the price is right. If you have noticed, most stock prices of REITs have gone up and this results in a lower dividend yield at the current price.

That is all my updates for February!