After a positive
reception during its soft launch, Singapore’s Open Electricity Market (OEM) has
slowly expanded its operations to different areas of the country since November
2018. Instead of taking advantage of what the OEM has to offer, some businesses
and homeowners may have questions regarding it.
Discount off tariffs? Fixed price plans? If terms like these seems foreign to you, this post serves as a short guide that will walk you through different important aspects of the OEM.
Open Electricity Market
Flexibility and choice is the name of the game. With the introduction of the OEM, anybody is able to select who they would want to purchase electricity from – out of 13 licensed retailers. Previously, households and businesses would buy electricity only from SP Group, at a tariff regulated by them and reviewed on a quarterly basis.
These retailers in the market provide new and attractive offers, incentives and innovative electricity plans at a competitive rate as compared to SP Group. Some of them such as PacificLight and Geneco are concurrently generation companies and electricity retailers. While others are solely retailers who purchase excess electricity supplies from these generation company to supply to their consumers.
The choice is all up to you. As a consumer, you can exercise your freedom to switch or remain with SP Group as it is not mandatory to make a switch. If you are unsure about different plans or need more time to understand the offers of different retailers, take your time as there is no deadline to make the switch.
As of now, the OEM is opened to all residential and business units in Singapore except for areas with postal codes start with 1 to 33. The full culmination of the OEM with commence by May 1, 2019 when households and businesses situated in areas such as Harbourfront and Novena are able to select their preferred electricity retailer
What Should I Consider?
If you are at a loss, comparing price plans would be a good starting point. There are two main types of plans: fixed price plan and discount-off-the-regulated-tariff plan.
Fixed price plan: Consumers pay a fixed rate throughout their contract duration, which can range from six months (e.g. ‘Give Us A Try’ plan by Geneco), a year (e.g. ‘LifePower12’ plan by Senoko Energy Supply), to two years (e.g. ‘FIXED24’ plan by Keppel Electric). Such plans is suitable for those preferring certainty in their monthly bill.
Discount-off-the-regulated-tariff plan: Consumers will enjoy a fixed discount off the prevailing regulated tariff throughout their contract duration; regardless of tariffs set by SP Group. Such plans fit well for consumers who do not mind fluctuation in electricity price rates, as long as it is lower than the quarterly-set tariff.
I Have Already Made the Switch. What’s Next?
Congratulations! The power of choice is still in your hands. If you are unhappy with your current electricity retailer for any reasons, you can change to another retailer or revert to SP Group. Do make sure to check your plan’s contract to identify if are any termination fees or related charges.
This short guide has shown that the newly liberalised electricity market does indeed benefit consumers of different kinds, regardless of their electricity needs and consumption patterns – seeing there are many plans to cater to them.
Click the following link to discover more about Singapore’s Open Electricity Market through one of the market’s leading electricity retailer.