Electricity retailers to face stricter rules when auto-renewing contracts

Consumers must be notified twice; no fees for cancelling contracts within 60 days

- Ang Qing Correspondent

From June 19, 2026, households will have more leeway to cancel electricity contracts with retailers, following complaints that such contracts were being automatically renewed without ample warning.

The Energy Market Authority (EMA) said on Dec 19 that electricity retailers will be required to waive early termination fees for residential consumers who wish to end their contracts within the first 60 days of auto-renewal, instead of the current 30 days.

Responding to queries from The Straits Times, an EMA spokeswoman said the authority received feedback in 2024 from six consumers, who had to bear early termination fees after missing notifications that their contracts would be automatically renewed.

This figure does not include feedback received by retailers, she added.

EMA said retailers will also be required to notify consumers twice, instead of once, about any upcoming automatic renewal.

"The first notification must be sent at least 10 business days before contract expiry, and the second notification must be sent within three calendar days before or on the day of the auto-renewal," said the authority.