Electricity retailers face stricter auto-renewal rules for residential consumer contracts from June 2026

SINGAPORE: Residential electricity consumers on automatic contract renewals will get better protection from Jun 19, 2026, including a longer fee waiver period for early termination and stricter notification requirements for retailers, said the Energy Market Authority (EMA) on Friday (Dec 19).

Currently, electricity retailers can offer electricity contracts that will be automatically renewed when they expire, with predetermined terms similar to those under existing contracts and without requiring a new application.

Under existing rules, EMA requires these retailers to:

• Notify the consumers about the upcoming auto-renewal of their electricity contracts at least 10 business days before contract expiry
• Set the rate of the auto-renewed contract at no higher than the current regulated tariff for consumers buying electricity from public utility company SP Group
• Waive any early termination fee within the first 30 days of the auto-renewal

However, EMA said it received feedback from residential consumers that they had missed the retailers' notifications informing them of upcoming automatic contract renewals.

When they realised the auto-renewal had been done, it was after the 30-day window. This meant that they had to pay early termination fees if they wanted to end the renewed contracts.

In 2024, about 45,000 residential electricity contracts were auto-renewed – about 15 per cent of residential annual renewals.

After consultations with electricity retailers, EMA will introduce the following new requirements for retailers from Jun 19, 2026:

• Notify residential consumers twice, instead of once, about the upcoming auto-renewal of their contracts. The first notification must be sent at least 10 business days before contract expiry and the second must be sent within three days before or on the day of the auto-renewal
• The notifications must be sent via mail communication (email or postal mail) and mobile communication (such as SMS, WhatsApp or via the retailer’s mobile application)
• Waive any early termination fee for residential consumers within the first 60 days of the auto-renewal, instead of 30 days

These new requirements will not apply to consumers buying electricity at the regulated tariff from SP Group, said EMA.

"These enhancements are aimed at ensuring residential consumers have clear and timely information before their electricity contracts are auto-renewed," said EMA CEO Puah Kok Keong.

"This will empower them to better assess their electricity purchase options and choose their preferred electricity plans."  

EMA said it will continue to monitor and review its regulatory requirements to protect consumer interests while promoting transparency and fair competition in the electricity market.