Singapore’s Open Electricity Market (OEM) has almost culminated with only one zone left for the initiative to be rolled out to. This initiative was put in place in an effort to make the retail electricity market more free, by generating competition between electricity providers, so they can provide innovative offers and better prices to local consumers.
Many homeowners and businesses across Singapore already have access to the OEM, and benefitting from it. These areas include Jurong, Bukit Batok, Yishun, Sembawang, Tampines, and Pasir Ris to name a few. The progressive implementation of the initiative will reach its peak on May 1, 2019, when it extends to areas with postal codes starting from 01 – 33. These areas include the central business district (CBD) and residential areas in central Singapore such as Queenstown.
So, what does this mean for my household?
Previous, homeowners and businesses were restricted to only SP group for their electricity purchase. With this new market structure, Singaporeans are able to select from a wide range of competitively-priced electricity plans from 13 electricity retailers.
On top of such plans, retailers are able to provide innovative products such as solar-based energy, and attractive offers including sign-up discounts, freebies and rebates. This ultimately results in a reduction in one’s monthly electricity bills.
With an expanded option, who are the participating retailers?
As of now, 13 retailers will be competing in the OEM to offer electricity to consumers. The following are the 13 retailers for consumers to choose from:
- Geneco (Powered by Seraya Energy)
- ES Power (by Environmental Solutions)
- Best Electricity Supply
- Senoko Energy Supply
- iSwitch Energy
- Ohm Energy
- Union Power
- Keppel Electric
- Sembcorp Power
- Sunseap Energy
- Diamond Energy Merchants
- PacificLight Energy
- Tuas Power Supply
There are two types of retailers – ones who buy excess electricity from the wholesale electricity market and others who own power plants and generate their own electricity. While the former’s electricity prices are more prone to market forces, the latter enjoy more control over their prices. Some examples of retailers who also generate their own power are Geneco through YTL PowerSeraya, Senoko Energy Supply and Tuas Power Supply.
How do the electricity plans from different retailers differ?
Retailers mainly provide two kinds of standard price plans for consumers who are able to make the switch.
Fixed Price Plan: Consumers are made to pay a constant rate throughout the contract duration, regardless of its deviation from the regulated tariff. It may be higher or lower than the regulated tariff which is reviewed quarterly.
Discount Off the Regulated Tariff Plan: Consumers are offered a fixed discount on the regulated tariff during the entire contract period.
While the former plan is suitable for homeowners who want stability in prices irrespective of the bill amount, the latter is more suitable for those who don’t mind fluctuating electricity prices every quarter, so long as it remains below the regulated tariff.
With the extension of the OEM islandwide, homeowners and enterprises across Singapore have the flexibility to choose who they want to buy their electricity from. One core benefit of this is that they can save money by choosing a plan based on their house’s electricity consumption among other factors.
Power the change towards better electricity bills by exploring a sustainable and leading retailer in Singapore’s Open Electricity Market.