Rising prices of electricity retail plans have narrowed what was once a double-digit difference with SP Group's regulated tariff to less than 1 cent per kilowatt hour (kWh), as the global energy market continues to face uncertainties.
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A search on the Open Electricity Market's price comparison website on Thursday (Aug 4) showed the cheapest fixed price plan offered by a retailer was 31.30 cents per kWh, for a contract period of 24 months. This rate includes Goods and Services Tax (GST).
In comparison, SPs electricity tariff for households stands at 30.17 cents per kWh for the third quarter. With GST, the rate which is reviewed every quarter by the national utility group is 32.28 cents.
Other fixed price plans, with contract durations of between six and 24 months, ranged from 31.60 cents per kWh to 48.15 cents per kWh.
No discount-off-tariff plans where retailers give a fixed discount off SP's tariff are available currently, based on the same search done by CNA.
This means that the difference between the cheapest price plan offered by an electricity retailer versus SP is just 0.98 cents a stark difference from four years ago when retail rates were up to 30 per cent cheaper.
With all the uncertainties in supply and demand, it is not surprising that the energy retailers are being conservative with their offerings, said Professor Subodh Mhaisalkar, executive director of the Energy Research Institute at Nanyang Technological University.
