Ohm's philosophy is to price our plans according to market conditions as we have always done so since the launch of the Open Electricity Market. This has been how we function as a company and our promise to our customers.
We have to look both forward (oil futures for pricing electricity futures) and backwards (in regards to the regulated tariff) when we set our prices. With the peculiar market situation we have now a result is that we need to lower the discount on tariff we offer.
The main driver in the electricity price is the price of oil. The tariff uses the last quarter's oil price. For the tariff in Q3 the average oil price from 1 April to 15 June is used. In this period, the average price for oil (Brent) was around USD 25/barrel. When a customer signs or renews a contract with us (discount on tariff or fixed price), we hedge that exposure using electricity futures listed on SGX. These futures look to the forward oil price, now over USD 40/barrel. So we are giving a discount on a tariff based on USD 25/barrel while we are hedging the sale with contracts based on more than USD40/barrel.
This is an unusual market situation, and we have to adjust our discount of tariff products to match with the market price.
We understand that savings on your electricity bills are important to you. We would like to assure you that to be fair to all our existing customers, we are offering customers renewing with us the same rates that we offer new customers who would like to take on the same price plan type.
Returning customers also get an additional 1% (6-month renewal) to 1.5% (12-month renewal) discount on tariff.
Should you have any questions, please feel free to email us at [email protected]
Ohm's philosophy is to price our plans according to market conditions as we have always done so since the launch of the Open Electricity Market. This has been how we function as a company and our promise to our customers.
We have to look both forward (oil futures for pricing electricity futures) and backwards (in regards to the regulated tariff) when we set our prices. With the peculiar market situation we have now a result is that we need to lower the discount on tariff we offer.
The main driver in the electricity price is the price of oil. The tariff uses the last quarter's oil price. For the tariff in Q3 the average oil price from 1 April to 15 June is used. In this period, the average price for oil (Brent) was around USD 25/barrel. When a customer signs or renews a contract with us (discount on tariff or fixed price), we hedge that exposure using electricity futures listed on SGX. These futures look to the forward oil price, now over USD 40/barrel. So we are giving a discount on a tariff based on USD 25/barrel while we are hedging the sale with contracts based on more than USD40/barrel.
This is an unusual market situation, and we have to adjust our discount of tariff products to match with the market price.
We understand that savings on your electricity bills are important to you. We would like to assure you that to be fair to all our existing customers, we are offering customers renewing with us the same rates that we offer new customers who would like to take on the same price plan type.
Returning customers also get an additional 1% (6-month renewal) to 1.5% (12-month renewal) discount on tariff.
Should you have any questions, please feel free to email us at [email protected]