{"id":4816,"date":"2021-07-01T08:00:00","date_gmt":"2021-07-01T00:00:00","guid":{"rendered":"https:\/\/www.pzl.sg\/blog\/?p=4816"},"modified":"2026-01-25T16:50:47","modified_gmt":"2026-01-25T08:50:47","slug":"what-is-fixed-price-plan-in-open-electricity-market-singapore","status":"publish","type":"post","link":"https:\/\/www.pzl.sg\/blog\/what-is-fixed-price-plan-in-open-electricity-market-singapore\/","title":{"rendered":"What is Fixed Price Plan in Open Electricity Market Singapore"},"content":{"rendered":"\n<p>Basically, an electricity retailer charges a fixed rate for a fixed price plan in the <a href=\"https:\/\/www.pzl.sg\/blog\/open-electricity-market-in-singapore\/\">open electricity market<\/a>. This is regardless of the prevailing electricity tariff. With this in mind, let&#8217;s understand how it works, and whether such plans are suitable for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Table of Contents:<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><a href=\"#part1\">How does a Fixed Price Plan work?<\/a><\/li>\n\n\n\n<li><a href=\"#part2\">Example<\/a><\/li>\n\n\n\n<li><a href=\"#part3\">Advantages<\/a><\/li>\n\n\n\n<li><a href=\"#part4\">Disadvantages<\/a><\/li>\n\n\n\n<li><a href=\"#part5\">The Benchmark<\/a><\/li>\n\n\n\n<li><a href=\"#part6\">Should You consider a Fixed Price Plan?<\/a><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">One Minute Summary:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Overall, you will pay the same electricity rate throughout the contract period for a fixed price plan.<\/li>\n\n\n\n<li>As a result, this works best when you want stability in your monthly electricity bill.<\/li>\n\n\n\n<li>Based on the past electricity tariff trend, you will likely pay lesser for your electricity bill through a fixed price plan.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"part1\">Part 1: How does a Fixed Price Plan work?<\/h2>\n\n\n\n<p>By and large, an open electricity market retailer will determine two main variables in a fixed price plan:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The pre-determined electricity rate to charge you, e.g. 19 cents\/kWh; and<\/li>\n\n\n\n<li>The contract duration, e.g. 24 months.<\/li>\n<\/ul>\n\n\n\n<p>Thereafter, you will pay the same electricity rate throughout the contract duration. In order to understand how such plans work, let&#8217;s go through an example in the next section.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"part2\">Part 2: Example<\/h2>\n\n\n\n<p>As an illustration, an open electricity market retailer offers the following plan:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fixed Electricity Rate: 19 cents\/kWh<\/li>\n\n\n\n<li>Contract Period: 24 months (From October 2018 to October 2020)<\/li>\n<\/ul>\n\n\n\n<p>At the same time, let&#8217;s assume that you consume 300 kWh of electricity every month.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1200\" height=\"628\" src=\"https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2024\/11\/blog_fixedpriceplanoemeg1.webp\" alt=\"Example for a Fixed Price Plan in Open Electricity Market Singapore\" class=\"wp-image-13261\" srcset=\"https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2024\/11\/blog_fixedpriceplanoemeg1.webp 1200w, https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2024\/11\/blog_fixedpriceplanoemeg1-450x236.webp 450w, https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2024\/11\/blog_fixedpriceplanoemeg1-620x324.webp 620w, https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2024\/11\/blog_fixedpriceplanoemeg1-150x79.webp 150w, https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2024\/11\/blog_fixedpriceplanoemeg1-768x402.webp 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Example for a Fixed Price Plan in Open Electricity Market Singapore<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Part 2.1: Total Bill under the Fixed Price Plan<\/h3>\n\n\n\n<p>Under those circumstances, you will pay $0.19 x 300 kWh = $57 monthly for the next 24 months. By and large, this is regardless of the prevailing electricity tariff. In sum, you will pay a total of $1,368 in the two years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Part 2.2: Total Bill under the Prevailing Electricity Tariff<\/h3>\n\n\n\n<p>On the other hand, you would have paid a total of $1,784.36 in the same period. As you would agree, you saved $1,783.36 &#8211; $1,368 = $415.36 by switching to a fixed price plan. When we scrutinise these numbers further, you save about $17.31 a month. To point out, this is 23% of your (original) monthly electricity bill!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"part3\">Part 3: Advantages<\/h2>\n\n\n\n<p>On the positive side, you may disregard the quarterly fluctuation in the electricity tariff. This is because you will be paying the same fixed rate anyway. Consequently, this fluctuation has no impact on your monthly electricity bill. So long as the electricity tariff stays above the fixed price, you will continue to save on your electricity bill.<\/p>\n\n\n\n<p>To demonstrate, let&#8217;s take the electricity tariff to be 25 cents\/kWh. In this situation, you will save more money through the fixed price plan. In detail, the additional savings is the result of the difference between the fixed rate and the prevailing electricity tariff, i.e. ($0.25 \u2013 $0.19) x 300 kWh = $18 a month.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"part4\">Part 4: Disadvantages<\/h2>\n\n\n\n<p>On the contrary, you will pay a higher electricity bill if the electricity tariff falls below the fixed rate. In the long run, you will be worse off by making the switch!<\/p>\n\n\n\n<p>To illustrate, let\u2019s take the electricity tariff to be 15 cents\/kWh. In this case, you will pay a higher cost for the quarter. In detail, the extra cost is the result of the difference between the prevailing electricity tariff and the fixed rate, i.e. ($0.19 \u2013 $0.15) x 300 kWh = $12 more every month.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"part5\">Part 5: The Benchmark<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1200\" height=\"628\" src=\"https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2026\/01\/blog_electricitytariff_202601_1.webp\" alt=\"Electricity Tariff Singapore: January 2026 to March 2026\" class=\"wp-image-14697\" srcset=\"https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2026\/01\/blog_electricitytariff_202601_1.webp 1200w, https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2026\/01\/blog_electricitytariff_202601_1-450x236.webp 450w, https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2026\/01\/blog_electricitytariff_202601_1-620x324.webp 620w, https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2026\/01\/blog_electricitytariff_202601_1-150x79.webp 150w, https:\/\/www.pzl.sg\/blog\/wp-content\/uploads\/2026\/01\/blog_electricitytariff_202601_1-768x402.webp 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Electricity Tariff Singapore: January 2026 to March 2026<\/figcaption><\/figure>\n\n\n\n<p>Based on the past electricity trend, let&#8217;s form a benchmark when we choose a fixed price plan. In general,<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>We want a plan that offers less than 21.43 cents\/kWh (optimal rate, before applying the prevailing GST rate);<\/li>\n\n\n\n<li>Based on the earlier point, it is okay to consider a long-term contract, e.g. 2 years.<\/li>\n\n\n\n<li>The highest price that we may consider is 27.55 cents\/kWh (maximum tolerance, before applying the prevailing GST rate); this is so long as the electricity tariff stays within the same trend.<\/li>\n<\/ul>\n\n\n\n<p>Meanwhile, it must be remembered that the above benchmark assumes that the electricity tariff stays within the same trend. To make the right choice, check out my detailed comparison on <a href=\"https:\/\/www.pzl.sg\/blog\/how-to-choose-an-open-electricity-market-retailer-in-singapore\/\">How to Choose an Open Electricity Market Retailer<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"part6\">Part 6: Should You consider a Fixed Price Plan?<\/h2>\n\n\n\n<p>On the whole, a fixed price plan offers you the most stability in the open electricity market. This is owing to the fact that it disregards the fluctuation in the electricity tariff every quarter. All things considered, the (past) electricity tariff trend and the offered fixed price plans tell us one thing; we are likely to save more money by making a switch today.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Checklist:<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>How much electricity do you consume on average?<\/li>\n\n\n\n<li>Calculate your potential savings with a fixed price plan.<\/li>\n\n\n\n<li>Read the terms and conditions carefully before making a switch.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Understand more about a fixed price plan in the open electricity market. Overall, you will pay the same electricity rate to that end.<\/p>\n","protected":false},"author":1,"featured_media":13262,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83],"tags":[],"class_list":["post-4816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-open-electricity-market"],"_links":{"self":[{"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/posts\/4816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/comments?post=4816"}],"version-history":[{"count":1,"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/posts\/4816\/revisions"}],"predecessor-version":[{"id":14703,"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/posts\/4816\/revisions\/14703"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/media\/13262"}],"wp:attachment":[{"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/media?parent=4816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/categories?post=4816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pzl.sg\/blog\/wp-json\/wp\/v2\/tags?post=4816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}