Your electricity retailer just sent a scary renewal letter — 11% higher, with headlines about Middle East volatility. But Iggy runs the forensic numbers and the real story is worse: you're not being charged for the energy you use, you're being charged for your retailer's two-year insurance policy. When the fixed rate and the regulated SP tariff are almost neck-and-neck, locking in could quietly strip hundreds of dollars from your CPF compounding runway.
Key takeaways:
The 2% spread rule: if the fixed rate is within 2% of SP’s regulated tariff, the “safety” isn’t worth paying for
EMA’s 80% hedging mandate means retailers must hedge in advance — and pass that cost to you
A 3-cent per kWh gap on 500 kWh/month = almost S$400 gone over two years
That S$400 could have been an ERS top-up or T-Bill earning 3.5%+
The regulated SP tariff resets every quarter on real fuel costs — it’s often safer than it looks
Iggy’s Forensic Compliance Standards — Standard Disclaimer
This content is produced for educational and informational purposes only. I am not a financial advisor — I am a retail investor who applies forensic analysis to my own portfolio and shares that process publicly. Nothing here constitutes a recommendation to buy, sell, or hold any security, and no specific target prices or personalised financial advice are offered. All data is sourced from public filings and verified sources; where data is unverified it is explicitly flagged. All investments carry risk, including the potential loss of principal, and past performance is not indicative of future results. If you are making investment decisions involving CPF, SRS, or personal capital, please conduct your own due diligence or consult a MAS-licensed financial adviser before committing funds.
