Why is there an early termination fee if I break my contract in advance with Ohm Energy?

We cannot emphasize enough on the reason why we have early termination penalty on our contract plans. For every contract that our customers sign up with us, we have to purchase electricity futures for to hedge against the fluctuating wholesale electricity prices. For contracts that are terminated early, there are costs incurred to unwind the electricity futures contract. This is why there is an early termination fee clause in our contract-term plans. This is also the reason why do you not need to have generation plant in order to supply electricity to households.

By having generation, that does not guarantee that your electricity price remains low. In Singapore, all generation has to be supplied and plugged to the grid. The grid is managed by SP Powerassets hence your electricity supply remains the same. By regulation, it is also not possible any retailer to buy directly from generation. All retailers buy direct from the wholesale market (USEP) from Energy Market Company (EMC).

For more details, you can find the half-hourly USEP rates on www.emcsg.com