Buying at Wholesale Electricity Prices
Consumers can choose to buy electricity from the wholesale electricity market via SP Group. In doing so, they will be paying for electricity at prices that vary every half-hour, depending on the demand and supply situation in the market. This is known as the Wholesale Electricity Price (WEP).
The WEP would typically rise due to reasons such as an increase in electricity demand and/or an outage of power generating units. For example, in the months of October and November 2021, the half-hourly prices* ranged between 6.87 cents/kWh and 442.01 cents/kWh. As a point of reference, the regulated tariff for Q4 2021 was priced at 25.80 cents/kWh (inclusive of GST).
Table: Summary of WEP* observed in October and November 2021
|Lowest half-hourly WEP (cents/kWh)
|Highest half-hourly WEP (cents/kWh)
*Source: Energy Market Authority. Figures provide an equivalent charge per kWh under a WEP plan. Actual calculation of charges will be presented in detail in customers’ bills. Figures have factored charges such as grid charge, transmission loss and 7% GST, but exclude Meter Reading and Data Management Charge ($2.18 per meter) and Vesting Debit/Credit (if applicable) for the quarter. You may visit the Energy Market Company's website to view the historical and current WEP.
Consumers are advised to consider the WEP plan carefully given that the electricity rate that they pay is uncertain and volatile.
The sharp rise in the WEP observed in Q4 2021 stemmed from several factors, including the global energy crunch which resulted in high spot natural gas prices, production issues in Indonesia’s gas fields which led to piped natural gas supply disruptions, and unplanned outages of power generation plants. (Read our media release for more details.)
This volatility may persist in the months ahead. For greater price certainty, households and small businesses^ are advised to consider these options instead:
a. Buy electricity at the Regulated Tariff from SP Group, where the cost is linked to long-term fuel prices and adjusted quarterly. View the latest regulated tariff rates.
b. Buy electricity under a Fixed price plan or Discount Off the Regulated Tariff price plan from a retailer in the Open Electricity Market. Start by comparing the standard price plans offered by electricity retailers using the Price Comparison Tool.
^Monthly average consumption does not exceed 4,000 kWh
Here are more details on how one can switch from WEP to other purchase options.
For consumers who prefer to buy electricity from SP Group at the wholesale electricity price, please read through SP Group’s Fact Sheet and Consumer Advisory which summarises the key contractual terms before doing so.
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