Singapore has been progressively developing the Open Electricity Market since 2001. This is to give consumers the opportunity to choose their choice of retailer and have a chance to utilize cheaper electricity.
Think of this as similar to the privatization of telecommunication companies in Singapore. Different retailers like SingTel, M1, Starhub, MyRepubic and Circles.Life are offering different price plans for different kinds of customers.
April 2018 marks the month when OEM was soft launched and the residential consumers were able to switch to electricity retailers and choose a plan which suits them best. Now consumers on the entire island can enjoy the benefits of privatization
A lot of people are worried and often confused about several factors in decision making like the infrastructure, billing and payments, discounts and electricity management, but bare in mind that SP Group still continues to operate the national power grid, so be assured of the similar reliable power supply as expected in Singapore. Those people who still don’t want to choose, u can maybe close this tab as its just an optional thing to do but you will be missing a chance to save.
Here is the current list of electricity retailers that you’ll be able to buy the electricity from:
Open Electricity Market(O.E.M) Launch
Now that the market is open up for the entire island anyone can make a switch and enjoy the discounted bills! Sounds crazy right, but no so fast there are several factors that need to be considered first before switching to a retailer; like dwelling type and usage of electricity of ones household. Below is the chart that shows the launch area and dates for different zones.
SP GROUP TARIFF
The Current Regulated Tariff is 25.92 cents/kWh with GST (effective from 1st July to 30th September 2019)
- Highest tariff in past 24 months: 25.82 cents/kWh (with GST)
- Lowest tariff in past 24 months: 21.72 cents/kWh (with GST)
- Average tariff in past 24 months: 23.78 cents/kWh (with GST)
FACTORS TO CONSIDER
Consumption and Dwelling Type:
Now lets take a look at the dwelling type chart which gives a rough estimate for an average bill according to SP figures in Singapore. This can help you to figure out how much estimated monthly saving you will be enjoying and it will hep you to decide which plan in the market is the best according to your individual needs.
A). Fixed Price plan: Pay a constant rate (e.g. 20 cents/kWh) for electricity throughout your contract duration. However, the rate may be higher or lower than the regulated tariff during the contract duration as the regulated tariff is reviewed every quarter. This plan is suitable for consumers who prefer certainty over price and bill size.
B). Discount Off the Regulated Tariff Plan
Enjoy a fixed discount off the prevailing regulated tariff (e.g. 20%) throughout your contract duration. This is suitable for consumers who do not mind that their electricity rate changes every quarter so long as it is lower than the regulated tariff. The regulated tariff is reviewed by SP Group quarterly, and approved by EMA.
Unique Selling Propositions:
For people who have unique preferences for their products and services or those who are keenly involved in supporting eco-friendly production or those who prefer to buy from a stable and established company, all of them can have their demands met by different retailers.
Sunseap differentiates themselves in the market as a Clean Energy provider because of their solar power initiatives. ES Power identifies as the Green Energy provider hence having an edge in the Green and Eco-Friendly market share.
Retailers like Keppel Electric and TuasPower are established retailers with strong hold in the market. Private retailers like iSwitch and Best Electricity are also available for supporting foreign trade and developing business in Singapore market.
Payment Methods & Billing:
Rise in technology and smart payment systems have made it easier for people to pay their bills, exchanging transactions, making electronic payments within a reach of a click. Different retailers have adopted different payment options and some have limited options. So do keep in mind this point especially if you’re switching for your elder parents and they have their set ways to pay bills, we definitely don’t want them to be troubled by this, hence take this into account.
Discounts and Promotions
“People get addicted to discounts, they don’t get addicted to free”Jon Taffer
The OEM market competition is very strong and saturated hence the prices of different retailers only differs between a few cents but the main difference comes against SP Regulated Price, hence to create an urgency retailers offer several different discounts and promotions to attract customers for their benefit. Free services, gift vouchers, lucky draw winnings, free products and several other different discounts and rebates are available in the market. So you should understand what promotions are there but don’t make it a big factor in decision making as the main point here is still saving money on the bills, so if you can compromise on a 20$ voucher for long term better savings, don’t hesitate.
So there it is, a brief guide to understand the O.E.M market and the retailers involved to help you decide which plan and retailer suits your needs the best. Happy Savings!