With effect from 19 June 2026, the Energy Market Authority (EMA) will institute more safeguards to protect the interest of residential consumers with automatic renewal (“auto-renewal”) electricity contracts.

Currently, electricity retailers have the option to offer electricity contracts that will be automatically renewed upon expiry of the contracts. Such contracts are auto-renewed with pre-determined terms (including contract duration) that are similar to the terms under the existing contracts, without the need to submit a new application. EMA presently requires electricity retailers offering auto-renewal contracts to residential consumers to do the following:

a) Notify the residential consumers about any upcoming auto-renewal of their electricity contracts at least 10 business days before contract expiry.

b) Set the rate of the auto-renewed contract at no higher than the prevailing regulated tariff for consumers buying electricity from SP Group.

c) Waive any early termination fee within the first 30 days of the auto-renewal.

In 2024, about 45,000 residential electricity contracts were auto-renewed – this makes up 15% of residential annual renewals.

EMA received feedback from residential consumers that they had missed the retailers’ notifications informing them of the upcoming auto-renewal. Furthermore, when the residential consumers realised that their contracts had been auto-renewed, it was after the 30-day window which then subjected them to early termination fees under the renewed contracts.

EMA had consulted the electricity retailers to address the above feedback and will introduce the following new requirements with effect from 19 June 2026:

a) Notify residential consumers twice (instead of once) about any upcoming auto-renewal of their electricity contracts. The first notification must be sent at least 10 days before contract expiry, and the second notification must be sent within three days before or on the day of the auto-renewal.

b) The above notifications must be sent via mail communication (i.e. email or postal mail) and mobile communication (such as SMS, WhatsApp message or via the retailer’s mobile application).

c) Waive any early termination fee for residential consumers within the first 60 (instead of 30) days of the auto-renewal.

The new requirements, which will be reflected in the Code of Conduct for Retail Electricity Licensees, do not apply to consumers buying electricity at the regulated tariff from SP Group.

Mr Puah Kok Keong, Chief Executive of Energy Market Authority, said: “These enhancements are aimed at ensuring residential consumers have clear and timely information before their electricity contracts are auto-renewed. This will empower them to better assess their electricity purchase options and choose their preferred electricity plans.”

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