I Didn’t Want To Switch Electricity Provider, My Colleague “Forced” Me To!

Last year, open market electricity roadshows were everywhere! The topic was brought up at every lunch/coffee/gathering session with my friends and colleagues.

I, on the other hand, was trying to block out the noises. Buzz words were thrown around – “Sembcorp”, “Keppel”, “no more Hyflux”, “rebate”, “referral code”, “must change”

Image from: https://www.smallcapasia.com/choose-best-open-electricity-market-oem-plan/

 

I’m thinking, “what’s the point when my SP bills are not that high.” The fact that the cheaper rates apply to “electricity only”, (the SP bill consists of water, gas, waste collection), made me even more reluctant. What?! Electricity only? My savings will probably be $20.

My colleague told me, “just change! No matter which one you pick, you definitely pay lower than your current bill and you will save”. I’m not interested in paying lower, I am interested in the “saving”. I took a look and decided on one company that doesn’t give me a separate bill. (I hate clutter.)

Following my switch, I was speaking to my clients, and I asked them, “you guys were so excited about the savings, after you switched the electricity provider, what next?”

My client looked at me, eyes widened like a 3-year-old, “huh?!”

I repeat, “after you switched the electricity provider, what next?”

Client, “what do you mean? I just want to ensure I don’t overuse my electricity because it’s cheaper now.”

<BOOM>

If you are one of those who spent time and effort researching and switching the provider to achieve that “saving” last year, I would like to ask you this – do you know what happened to that amount you saved?

Has it been intentionally set aside in your bank account as additional contingency?

Have you increased your monthly investment to really grow wealth?

Have you ended up using more electricity cos it is cheaper now?

Have you just ended up just spending the amount you have saved? Be it on other purchases or increasing your travel budget?

If the $50-$100 “saved” monthly still ended up in somebody else’s pocket instead of your own, why did you bother to switch in the first place?

You use your own time to save the money from one provider to pay someone else.

I repeat.

You use your own time to save the money from one provider to pay someone else.

If you really saved the $1,200 per year, that could be equivalent to ROI assumed at 3% from a lump sum of $40,000 invested depending on your risk appetite, market condition and investment strategy. The amount is small, the behaviour is not. I believe in the importance of investment returns although there may be risks involved, and I also believe in finding money you never knew you have. Alternatively, you may want to consult a professional for advice.

Author: Henry Tan

Edited by: Tina Liem-Ho