We refer to Mr Teo Chun Nee's letter (Don’t allow electricity retailers to auto-renew contracts, March 3) regarding auto-renewal of electricity contracts.

The Open Electricity Market allows retailers to offer plans with different features to meet consumers' preferences. These include plans with auto-renewal to simplify the recontracting process for consumers who wish to remain with their retailer.
Consumers have the option of selecting a plan without an auto-renewal clause. All retailers must provide consumers with a fact sheet that highlights the key contract terms and conditions, such as the contract duration, payment terms and any auto-renewal clause.

The Energy Market Authority requires retailers to notify consumers at least 10 business days before the date of contract auto-renewal. Consumers who do not wish to proceed with the auto-renewal must inform the retailer by the deadline stated in the retailer's notification.

Consumers who do not respond within this period will be renewed at the retailer's prevailing terms. However, the auto-renewed contracts must be priced lower than the prevailing regulated tariff and the security deposit will be the same or better than the existing contract.

If the contract is automatically renewed, consumers may terminate it within 30 days of the commencement date by giving the retailer at least 30 calendar days’ notice. In such instances, the consumers are not required to pay early termination charges or applicable fees.

We thank Mr Teo for his feedback.

Consumers who wish to learn more about their electricity purchase options may visit www.openelectricitymarket.sg for more information.

Jesse Chin

Director, Market Development and Surveillance Department
Energy Market Authority