Everything you need to know about the Open Electricity Market (OEM)
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Every house needs good electricity to call it a functional home. The Open Electricity market allows homeowners to choose from a list of electricity retailers with varying packages and prices.
Before the Open Electricity Market made its way into Singapore, the entire nation was powered solely by Singapore Power (SP).
In 2018, Singapore introduced this new electricity market, and now many electricity retailers are fighting for a spot at the top, providing electricity to all Singaporeans.
After a long and drawn-out market to competition between as many as 20 electricity power generation companies since the OEM’s entrance into the Singaporean electricity market, there are only 9 retailers left on the list.
This does not mean that they’re not doing well in the market.
They are actually gaining ground as the preferred electricity service providers in Singapore because of the varied range of packages and competitive pricing they provide.
Now, you’ll see a lot of Singaporeans trying to change their service providers from the original Sp to the private retailers.
In this article, we will take a look at what the Open Electricity Market is all about and what the new electricity retailers provide its customers.
What is the Open Electricity Market?
The Open Electricity Market was an initiative in Singapore that was launched in 2018 and started as electricity service providers, a clear alternative to the only service at the time, SP.
Through the OEM, customers can now choose from a wide range of retailers for their services. It does not mean that you will have to change your service from SP to OEM.
You can choose to continue with SP if you wish.
The OEM just provides customers with more options if they want it.
Ever since this new change in the electricity scene in Singapore, about 20 different retailers have established themselves as the preferred electricity providers.
As of 2020, as many as half of the private sector have left the OEM because of the harsh competition from other retailers.
The main reason for this, as stated by the previous retailers, is the volatility of the market, which made it almost impossible for their business to stay afloat.
The rising fuel costs have also been a significant contributor to many of these electricity retailers leaving the marketplace.
A Reuter’s report even stated that one of the prominent providers SilverCloud Energy, which was known to be a provider of commercial and industrial power, has also made its way out of the OEM.
With this, it is easy to understand the cutthroat market that is the OEM.
How it all started:
To understand Singapore’s power and electricity market, we will have to look at its early years after independence.
The Public Utilities Board (PUB), which was established in 1963, was the only source providing electricity, gas, and water to the nation at the time.
After 30 long years of the PUB maintaining and monitoring these services, they created a corporation for the gas and electricity services.
This new introduction ultimately created a lot of competition for these services.
The Energy Market Authority of Singapore was launched in 2001, which was an effort by the government to try and liberalize the energy service market.
With this, the EMA became a regulator for all electrical services and was tasked with the responsibility of providing reliable electricity to the entire marketplace.
Through the years, the EMA has seen many changes in liberalizing the electricity sector in Singapore.
Some of the noteworthy developments under this initiative include the open retail electricity markets for commercial heads and setting up a framework to regulate the services.
The introduction of the wholesale electricity market was also done during this phase, which included spot bidding.
All these new launches in baby steps led to the massive action taken by the EMA to introduce the OEM in Singapore by 2018.
Now customers had the choice of what kind of plans they wanted concerning electricity in their homes.
The EMA is a substantial body that helps regulate the electricity market in Singapore, with the power to strengthen the market by making its services as reliable as possible.
Today Singapore enjoys its spot at the top as one of the most reliable electricity power plants in the world.
The average interruptions in the Singapore electricity market are low as 1 minute or less for each customer every year.
How does the Open Electricity Market work?
As mentioned earlier, the whole point of introducing the Open Electricity Market was to allow customers to enjoy the freedom of choice regarding their electricity suppliers.
There are a lot of added benefits when it comes to private electricity service providers, including prices and offers like referral codes.
As the final phase of the electricity liberalization movement in Singapore, the EMA introduced the OEM, where the people were given the choice of options from where they could buy their electricity.
- Choosing an electricity retailer who gives them vast choices when it comes to pricing.
- Choosing a plan that suits their living situation better
- Getting the electricity market through SP at wholesale electricity prices
It should be noted that even though the introduction of the OEM seems to have a significant impact on how Singaporeans look at the electricity supply situation, all the citizens don’t need to change their supplier from the SP Group to the OEM.
If you ever have second thoughts after deciding not to switch to another retailer, don’t worry because there is no deadline on when you should change your service provider.
In fact, it is better to take the time to analyze your options and make an informed decision properly.
Ever since the global gas prices have been hiked, there have been rising concerns over the problems caused partly due to the pandemic and the Russian-Ukraine War, which has impacted much of the world regarding power and fuel.
According to experts, the entry and exit of retailers into the OEM shows that the country is also facing similar problems as the rest of the world regarding energy crunch.
While customers are making their way into the OEM, retailers are backing out due to the global power price shock.
The only way out of this inconsistency is to have a system allowing customers to make their way into the OEM as smoothly as possible.
The main concern that this system should address is the sudden exit of some of these retailers in the OEM, leaving their customers with nowhere to go for their power needs.
The system should be able to impose some guidelines that will not hold the customer’s responsibility to pay early termination fees, late payment fees or outstanding charges.
Plus, refund any remaining balance that the customer already paid for and is yet to receive their due of electricity.
Another thing they need to look into is the supply of electricity after the transition.
Since many people speculate that these kinds of transitions will cause the power supply to be unreliable or production outages, authorities have to assure the customers that the power supply will remain the same regardless of which energy provider they are adopting.
With regard to the Code of Conduct for Retail Electricity Licensees, all those suppliers who want to leave the open market due to their own personal reasons will first have to go to the existing retailers in the market and request them to take over the customers they have on their network.
While this sounds like good news for the existing retailers, the catch is that the current retailers have to convince them to take on their customers under the same lock-in period that they have already signed.
The issue with this is that not all retailers offer the same plans and packages at the same prices.
This can cause concern for both parties when such an issue occurs.
Hence, the authorities have stated that if the new retailer cannot provide or accommodate the customer’s existing contacts, they will be transferred back to the SP group with the initial plans they already had.
If the customers don’t want o switch back to SP Group, they will be given a chance to choose a retailer of their choice.
When will I get to switch my electricity provider?
OEM first started in the Jurong district, where 9,500 businesses and 108,000 homes were introduced to the idea of a new electricity supplier.
This took place in November of 2018.
Once this soft launch was successful, they decided to roll out the market to the rest of Singapore in the following year, i.e., 2019.
Hence, OEM has seen a rise in private electricity retailers looking to get a piece of the new market share.
However, with the tough competition that the other retailers put out, there are only 9 remaining suppliers in the OEM.
Many of the suppliers who left the market blame it on the tough competitors as well as the rise of the inflation in fuels since the Russian–Ukraine War.
In fact, even Singapore’s longest-running power supplier, SP, has increased its prices to 32.28 cents per kWh, which is the highest it has climbed since 2014.
The new SP electricity rates will apply to all consumers from September onwards.
Even within the OEM, suppliers struggle to provide attractive deals as they used to at the beginning of this journey.
Nevertheless, they still hold a lot of benefits for customers who are looking to shift to this market for power and electricity.
During such uncertain times, there is a lot of speculation whether the impact of the war will last for months down the line, ultimately affecting fuel and energy costs in the country.
Some customers are taking up long-term plans with retailers like Senoko Energy and Geneco with the view that the ongoing war might be prolonged.
One of the reasons is that their plans are much lower than the regular SP tariffs by up to 11%.
If you want to go the other way around, you could try their short team plans and see if it’s a better fit for you.
Even the short-term plans of most of the suppliers under OEM have given unique benefits to their customers, including reductions in prices as compared to the SP regulated tariff over time that most people are used to.
What will happen after the OEM launch?
Since OEM came into the Singaporean electricity and power picture, retailers have had a comprehensive power struggle for their spot at the top.
Currently, only 9 of the best power retailers remain the primary electricity suppliers in Singapore, including home and business consumers.
After this change, customers are now enjoying more flexibility in purchasing and consuming power and electricity in the country.
Typically, these new retailers offer about 30% off the actual prices and rates you usually pay if you use the SP Group power supply.
According to the most recent research, more than 746,000 households have changed their supplier from the standard SP electricity to these retailers in the OEM.
This makes up for 50% of the entire country’s population.
Apart from the recent retailers who have left the OEM due to different reasons like the hike in fuel prices and the tough competitors, OEM has actually enjoyed tremendous benefits from the Singaporean market to date.
Moving forward, it is predicted that the EMA will see fit to enhance all licensing requirements for these retailers in the market, which will further strengthen the customer base.
These kinds of changes and innovations will not only provide customer protection but also safeguard the retailers in the days to come.
These innovations must be practical and realistic because the power and fuel stock market are ever-changing and unpredictable.
It is not possible for the authorities to set up guidelines and safeguards that can potentially successfully tackle each issue that pops up.
However, with some practical guidelines at hand, it will be easier to find a way out of a complex predicament if they ever run into one.
What’s the point of switching providers?
To understand why switching to a new supplier is logical, we first need to know why people are switching to OEM.
One of the main reasons why Singaporeans are seeking out new suppliers for their electricity is the idea of novelty.
Since SP has been the only power supply source since their early days of independence, there hasn’t been any significant change in the field until the OEM was introduced.
People are easily swayed by new and novel ideas that hit the market.
In this case, this initiative came with a lot of promises and attractive benefits that it was hard to say no to, even if it was just to give it a try.
The new suppliers have a much more comprehensive range of plans which means more customer options.
Another reason to consider is the sudden surge of new retail suppliers that entered the market.
This traffic caused a sense of urgency and need in the consumers’ minds.
There was also a lot of visible competition between retailers to give their customers the best prices and offers.
Some suppliers even backed out, which helped generate interest in many people.
The OEM being a new and booming market is reason enough to try it out.
People are already drawn to it because of the multitude of offers and benefits these suppliers offer all its users.
The goal is to give the customers what they need, so switching to a new plan cannot be the worst decision.
Another reason why this switch is advisable is that most retailers give their customers varied trial periods.
If you have been afraid of such a drastic change for many years but want to test the new market still out, then you can opt for short-term plans like Tuas Power’s six-month trial period.
After six months of using this supplier, you can decide for yourself if you wish to switch back to the original SP or if the new ones have more benefits for you.
As of April 2021, almost 49% of households have changed their primary power supplier from Sp to OEM.
Additionally, 47% of businesses have also taken up the offers of these new suppliers in the OEM.
Singapore Green Plan 2030:
According to this plan, the aim is to get the country and its residents to lower their energy use by introducing different means which will help tap into low-carbon energy consumption.
As part of this mission, Singapore is set to transform the energy supply by introducing alternative sources of energy such as natural gas, solar, emerging low-carbon alternatives, and regional power grids.
As of today, at least 95% of electricity in Singapore is powered by natural gas.
This is considered one of the cleanest and, thus, safe fossil fuels to use.
Additionally, the natural gas price is one that is more affordable as compared to other fossil fuels.
The plan is to keep up with this trend of using natural gas and perhaps even expand its use by scaling up the switches to natural gas for the remaining 5 %.
As one of the most common alternatives of power sources, solar energy sources will experience a surge in implementation.
The plan is to deploy as many solar power switches as possible across the country.
Emerging Low-Carbon Alternatives:
For this, the plan is to start looking for new and emerging alternatives for energy sources, such as carbon capture and utilization and storage (CCUS) technologies.
Regional Power Grids:
Regional power grids will help import 4GW of low-carbon electricity to gain access to low carbon emissions.
Apart from this, the plan is to reduce fuel oil use and focus on natural gas terminals that will help power the nation in a more economical and environmentally friendly way.
What are the different electricity plans available?
Ever since the introduction of the OEM, the electricity pricing plans have seen a drastic change in Singapore.
Each supplier has its own range of plans they offer its customers.
This was the core idea behind opening the electricity market: to let customers enjoy better options when it came to electricity plans.
Hence there are a lot of different plans, which we will take a look at below:
Fixed price plans:
This type of plan is the most common and was even followed by the SP Group.
In this plan, you will pay a fixed rate for a stipulated amount of electricity you will use for some time.
You contact your supplier and pay a fixed rate for that contractual period.
As the name suggests, the fixed amount stays fixed and does not change, no matter what changes the market might be experiencing regarding fuel and energy prices.
The downside is that if the price of energy falls when you’re in this contract, you still have to pay just as much as you have initially decided to pay.
However, the good part comes when the prices increase in the market; hence, you will pay way less than the market price.
These kinds of plans are much more suitable for businesses that are not looking for uncertainty when it comes to finances.
Additionally, homeowners and renters can benefit significantly from this plan because it makes it easier for them to calculate the electricity bill and their monthly rent.
Since there was a lot of competition between the suppliers in the OEM, it eventually meant that the fixed plans of the OEM suppliers were much less compared to SP Group’s.
For example, one of the suppliers in the OEM, Senoko, offered a tariff plan at a discounted 3% off the regular cost of electricity.
So when the SP Group’s tariff was set at $0.2990/kWh, Senoko’s program was $0.29003/kWh.
What’s better is that, like Senoko, many different suppliers offered different discounted rates, some up to 20% off.
With the rising fuel prices, these discounts have reduced noticeably as time passed.
However, their benefits are still much more than standard SP plans.
Discount Off Tariff (DOT) Plans:
As the name suggests, this kind of plan comes at discounted rates.
Many people tend to go for this plan under the OEM.
The Discount Off Tariff (DOT) plans give their customers a flat rate cut from the regular tariff.
This rate gets revised every quarter, so the rate is bound to change and fluctuate multiple times a year.
On and Off-Peak Plans
After the initial soft launch of the OEM, the electricity retailers within the marketplace introduced the “peak & off-peak” type packages.
This means that the prices for electricity during off-peak hours were less compared to the peak hours when the prices were hiked.
Hence, for this package, whether you shifted from SP to OEM, the ultimate bill for the electricity you pay entirely depended on how much power you used and your lifestyle.
However, this kind of uncertainty in pricing was not attractive to many consumers, which is why most retailers stopped this package.
If you consider the EMA electricity price plans, there are basically two kinds of plans you can choose from.
This kind of plan works better for those people who work in shifts.
For example, night shift workers can benefit from the lower rates because nighttime is when the off-peak hours are at the highest.
It is noteworthy that these plans are better for those with a fixed routine so that they can schedule their most energy consumption hours based on the peak and off-peak hours.
What about the Transmission Loss Factor (TLF) that everyone knows about?
The Transmission Loss Factor (TLF) is the term used to refer to the energy that gets lost in transmission or in the delivery process.
This means you do not get the amount you initially paid for, but you may still have to pay for it even if it never reached you.
In general, you can explain TLF as the amount of energy that gets lost when the electric current starts traveling through the transmission system.
This includes the distribution and transmission network, plus all the other power that is unaccounted for.
Market Support Services Licensee, SP Services Ltd, is the body that calculates the TRF for all customers.
The TLF rate depends on the voltage that the consumer is currently undertaking via their electricity plans.
In this case, if the customer’s high voltage consumption, the TLF will be lower than those with lower voltages.
When it comes to low voltage users, there are higher transmission losses incurred upon the consumer from the generation point to the final destination where the electricity is finally consumed.
The electricity consumed via metered quantity per consumer due to the transmission losses is less than the metered quantity of electricity that gets supplied from the generator units.
The TLF works as a system to assign this difference to all the customers based on their contribution as is seen as appropriate concerning this difference.
A few retailers have passed these kinds of charges to their consumers in the OEM.
This includes but is not restricted to Pacific Light, Sembcorp Power Pte Ltd, and Keppel Electricity.
However, other such electricity retailers in the OEM might likely ask you to sign a contract regarding the TLF charges before you switch to their network.
TLF charges are not that much.
In fact, they make up just about 3 or 4% of the total power bill you receive at the end of the month.
How TLF is accounted for:
There are two general ways in which these TLF ways get accounted for:
- Losses on the Distribution Networks: These get distributed through Line Loss Factors (LLFs)
- Losses on the Transmission System: These are assigned across BSC parties through TLMs
Transmission Loss Multipliers (TLMs) help allocate the losses on the Transmission System to the BSC parties.
There are different Transmission Loss Factors in every TLF Zone for each season of the BSC.
These zones are separated per the existing Grid Supply Point Groups or postal codes.
List of OEM electricity retailers in Singapore
You have to register with the Energy Market Company (EMC) as mandated by the Market Participant Retailers (MPR) so that you can buy electricity for your home or business from the National Electricity Market of Singapore (NEMS).
This electricity can then be sold to the customers associated with the respective retailers.
However, Non-Market Participant Retailers (NMPRs) are not required to register with the EMC to be part of the EMS.
The reason is that the NMPRs buy from the National Electricity Market of Singapore indirectly through Market Support Services Licensee (MSSL).
As discussed, there was a power fight between all the electricity retailers in the OEM.
However, after a prolonged competition, there are currently 9 different electricity retailers in the OEM in Singapore:
Diamond Electric Pte Ltd has been licensed by the Energy Market Authority (EMA) and is currently one of the 9 retailers of electricity in Singapore.
Diamond Electric was set up in 2006 and is considered an intelligent solution for energy-efficient consumption across the region.
The company aims to provide accessible and affordable electricity supply across the country for businesses and households.
The one thing that makes Diamond Electric stand out among other retailers in the country is its cheap tariff.
They are very competitive with their prices and offer as high as 25% less than their competitors offer.
In addition to this, if you are a UOB One cardholder, you can enjoy an extra 5% discount on your total power bill.
Keppel Electric is considered one of the best electricity plans if you are going for a non-standard price plans.
This retailer is known for introducing innovative electricity plans to its customers.
One such plan which stands out the most is called KNIGHT.
Customers who are registered to this plan can enjoy lower prices on their electricity when they use it at night as opposed to the higher rates during the day.
This is similar to the peak and off peak hour plan wherein the hours between 11 pm to 7 am in the off peak hours where you can use your electricity at home or in your business at lower costs, regardless of how much you use.
This plan is great for customers who work night shifts in their jobs or are more active at night since they can save a lot of money through the program.
Another thing that Keppel Electric introduced recently is the carbon neutral electricity plans known as ecoGreen24 and ecoGreen12.
These are more energy-efficient plans that they have introduced in light of the country’s attempt to reduce its carbon footprint.
Geneco (by Seraya Energy Pte Ltd)
Geneco prides itself on being an affordable electricity supplier in the country.
They also give their customers multiple options starting from a go green plan which utilizes Carbon Neutral Electricity to reduce the carbon footprint in the world, to the more standard fixed plans at different rates.
If you are a first-timer, Geneco caters to all their customers through different plans like the 6-month trial package, rightfully named “Give Us A Try.”
You can test out their services before you decide to get hitched for the longer 12 or 24-month fixed plans.
Another one of Geneco’s newer plans is the Go Clean Plan which uses solar energy to produce electricity.
They offer this service in other 1%, 5%, or 10% renewable solar energy.
PacificLight enjoys its reputation in the country as one of the best and customer sought electricity demand among retailers.
One of the main reasons behind its popularity is its cheap rates which are much more affordable than its competitors.
They offer as low as a 25% discount from the standard electricity rates in the country, which is quite a steal for those who are just looking to join the OEM.
Other than this, this retailer also charges significantly less for their no-contract plan, which allows customers a lot of flexibility in how they want their electricity to be supplied.
Sembcorp Power is well known for being one of the best Solar-Generated Electricity Retailers in the OEM.
They also offer great fixed-price plans, which is a good option for those customers who need consistency and reliability for their power source.
Their 6-month plans are the most popular fixed-price and are relatively cheap.
Another plan that Sembcorp Power offers is the Sunshine Plan which was introduced in 2019.
This works similar to the peak and off-peak plans that cost more during the day.
This was because they supplied power from solar energy from 7 in the morning to 7 at night.
Now since Sembcorp runs on 100% solar energy, they offer solar panel installation for all their customers, whether businesses or households.
Senoko Energy Supply
Senoko Energy Supply is another homegrown electricity supplier in Singapore that is doing quite well as a power retailer.
They have been in business since 1977, and as the years have passed, they are now trying to incorporate more green energy sources within the community.
Clean, green, and high-quality energy are what Senoko energy aims to provide for all its customers.
They are also quite popular with many Singaporeans because their fees are as transparent as they can get, without any hidden fees.
You don’t have to pay any security deposit to be able to avail of their services.
You only pay for the plan that you have registered under Senoko Energy Supply.
They also offer all new or existing customers to renew or register for their services 4 months before their current contract durations ends so that customers can avail of discounts and offers and save a little extra money.
The one aspect of Senoko Energy Supply that makes them so different from the other energy retailers in the business is that they offer dynamic interaction within the community, such as lucky draws and giveaways.
Customers can participate in all these events and enjoy different kinds of discounts and promo codes from the partners at Senoko Energy Supply through their Smart Rewards program.
Another noteworthy feature of Senoko Energy Supply is that its services are compatible with the U-Save Rebate.
You can easily offset your monthly electricity bills with whatever U-Save GST Vouchers you have.
However, keep in mind that the credits you have on your voucher will first be used to take care of your SP services charges, such as water and gas, before you can utilize it under Senoko Energy.
Sunseap Energy is a leading business in Singapore’s clean and green energy solutions.
They were recently acquired by Energias de Portugal Renewables (Euronext: EDPR), which is a global organization known for being the world’s largest producer of renewable energy.
Because the company is well set in its ways to provide green and clean energy to businesses and households across Singapore, they have been successful in establishing its name in the country.
There are two kinds of plans under Sunseap Energy- Sunseap – One Fixed and Sunseap – 100.
The main difference between these two plans is that the Sunseap One Fixed is cheaper than the Sunseap – 100 plan.
However, the cheaper, Sunseap- One Fixed is less green, meaning less eco-friendly than the other Sunseap-100 plan.
In fact, only 1 percent of the energy you buy from this Sunseap – One Fixed plan is solar energy; the remaining is not clean energy.
Whereas, if you go for the Sunseap-100 plan, the whole 100% of your energy will be solar energy, even though this is quite an expensive electricity optiopn.
If you look at the competitive market rates for Sunseap as opposed to the other retailers, they are on the higher side, which is one of the main reasons why many people refrain from this retailer.
That is unless they are conscious of the environment and want to contribute to clean energy consumption.
The good thing is that if you ever decide to go for their 100% green plan, they have a team ready to fulfill all customer needs, such as solar photovoltaic installations.
Tuas Power Supply
Tuas Power Supply is an excellent alternative for Singaporeans who are looking for a change from the standard SP services and their rates.
Tuas Power offers excellent discounts, which are much lower than the current tariff of electricity plans in Singapore; hence, they are pretty popular among penny-pinching individuals.
Suppose you are not keen on the fixed-price plan rates that most electricity retailers are providing their customers nowadays.
In that case, you can go for the alternative programs that are offered by companies like Tuas Power, which are subject to change and experience quarterly fluctuations but can come in much cheaper prices than the fixed plans.
The one thing that makes Tuas Power Supply a very sought-after power retailer in Singapore is its affordable and cheap package prices.
They have some of the cheapest electricity retailer for fixed-price plans like PowerFix 6 Care.
Their discounted tariff plan, PowerDO 12 Care, is another cheap alternative for those looking for a change in rates from regular SP prices.
These kinds of price packages are great for those who are looking for long-term fixed prices for their electricity for more consistency.
However, these prices are subject to change from one quarter to the next, depending on the costs that the SP group sets for the standard electricity rates.
Union Power aims to provide affordable and reasonable electricity to consumers and a thoroughly satisfying customer experience.
They have various electricity plans with varying prices and packages for both business accounts and households.
Not only this, but Union Power is also establishing its name in the industry as a solar power provider and supplier as part of its green and clean power service.
They are also a vital member of the Union Energy Group (UEG) based in Singapore.
Sustainable energy is one of the priorities for this retailer, which is why they plan on supplying eco-friendly power to all Singaporeans in the coming years.
How to switch to an electricity retailer?
Switching to another supplier is more straightforward than it seems.
Once you express your interest, the retailer will contact SP directly regarding the same and will make the switch on your behalf.
Don’t worry about the power supply being interrupted because SP Group is not entirely out of the picture, even if you choose a different operator.
SP Group will still be in charge of regulating the power grid nationwide and ensuring that the electricity supply is the same as before.
If you are a consumer eligible for the U-Save rebates, don’t worry; even if you switch from SP to another retailer, your rewards and offers remain the same.
After making your change, you can still use your U-Save to offset the prices for electricity usage in your bill.
Things to consider before switching to a retailer:
After you choose a retailer you want to go with, you just have to contact their customer service online, and they will do the rest for you.
They work directly with the SP group, so you don’t have to do anything other than telling them you want to make a switch.
Everything else will be taken care of on your behalf by your chosen retailer.
If you are currently on a peak and off-peak plan and wish to switch to a new retailer, you will have to install a smart electricity meter in your home or office, which will cost you a few dollars.
Before the GST charges, meter installation fees might cost you approximately $40.
Find out all retailers in the market:
Before you decide on a retailer, make sure that you shop around and find a retailer that best suits your requirements.
There will be varying packages and pricing that you can choose from.
So it is best to look around to know you are getting the most out of your supplier when choosing a retailer.
Do a price comparison between one retailer and another so you know the benefits you are getting from these suppliers.
Typically, you will find that retailers offer two kinds of standard plans: the discount off regulated tariff plan and the fixed price plan.
Get a quote from the retailers:
Once you find which retailer you want to buy your electricity plans from, contact them to find out their pricing and other programs.
If you already have your mind set on a particular plan that you wish to avail yourself of from the retailer, you can inquire further about the plan or, better yet, ask for a fact sheet where all their packages and prices for each plan will be set in black and white.
Also, you should ask the customer service team if there are any terms and conditions you must agree to before starting their service in full swing.
The most important part of this step is to make sure that you go through the consumer advisory section to be aware of what your provider is supplying.
Under the customer advisory, you should look for specific contractual terms such as auto-renewal clauses, security deposit, contract periods, early termination charges, and payment terms.
Now it’s time to sign up:
This is the actual process of switching to a retailer.
Go through their registration procedure and sign up for their services.
Once this is done, the retailer will contact SP Group and make the necessary changes for you.
For successfully switching your provider from Sp to your retailer, they will ask you for your last meter readings.
For this, you can ask their team how to get it and where you should submit this reading to finalize your transfer.
If you cannot get this for your retailer, they can also contact SP Group and get a rough estimate on your behalf.
Again, make sure that you are aware of all your rights, the policy of the retailer, and their terms and conditions.
Some contracts state that your contact will start in 5 business days, while others can take longer or shorter to start.
Benefits of the Singapore Open Electricity Market
There are a lot of benefits you can enjoy by joining the OEM. Such as:
More options for electricity plans:
We all know by now that introducing the OEM into the Singaporean electricity market has been revolutionary for customers looking for varied options and cheaper plans.
Since the market competition is relatively high, it has caused all retailers to have their prices lower than all standard SP tariffs to attract customers to their services.
Currently, you can choose from 9 different retailers and different electricity plans at varying rates.
You can even get your power supply directly from the SP group.
This means that you get to buy electricity at a controlled price through the SP group from the Wholesale Electricity Market, so your expenses will be lowered as compared to the standard tariffs.
The good news about this is that you get to enjoy a half-hourly wholesale price which will be determined by the current price of electricity in the WEM.
All customers- businesses or households may avail this option.
Novel plans and innovation:
Growing with the age and time, these new retailers in the OEM are targeting the current trends and trying to come up with the most innovative ways to ensure that their customers are getting what they want.
Starting from new packages and prices, they are also offering different kinds of products and services so that customers can choose from a wide range of options.
This is a great tactic to attract as many customers as they can.
Still, they are also doing a noble deed by working with the times and coming up with plans like green and clean plans, which are more eco-friendly and help in combating excess emission of carbon into the atmosphere.
The EMA is also working with the Union of Power and Gas Employees (UPAGE) for the development of outreach initiatives regarding the Human Capital Development Energy-Industry Scholarship for both public and private sectors.
Along with this, some of the retailers in the market have partnered to offer different loyalty programs and flat rate bundles that let you buy electricity in bulk.
It also comes with insurance and free vouchers, including U-Save rebates.
Enjoy lower costs:
Because of the competitive prices each retailer offers, other suppliers are forced to give out tempting discounts and offers to all their customers or potential customers.
Most of these retailers offer a very transparent package and price sheet, which customers can look into and decide for themselves if their plans are compatible with their lifestyle.
Switching to a retailer in the OEM hence, definitely aid in saving money since the tariff will be lower than your standard price plans.
In fact, many households that have switched to the OEM have stated that they are enjoying at least 20 to 30 percent less tariff on their power bills.
They are coming up with eco-friendly solutions:
Although it is fair to believe that these innovations in the OEM stemmed from the tough competition that these retailers faced in the market, there is no doubt that they brought about some good chances in the industry; the most impressionable one being the eco-friendly power move towards a clean and green environment.
Apart from the nonstandard packages that these retailers offer, the clean electricity move has been popular for many of these suppliers.
Electricity is the one thing that many of us have gotten used to having in the house and our workplaces.
It’s challenging to imagine living in a world without electricity, but the amount we consume is slowly proving detrimental to the environment.
So the new retailers in the market have come up with more environmentally friendly plans which will help move this usage of renewable energy forward.
Besides saving money because of the lower prices offered by these retailers, you can also do your bit to protect the environment by supporting the use of clean and green sources of electricity.
Better energy consumption awareness:
It is safe to assume that many people were not aware of the way that electricity consumption worked in the country before the introduction of the OEM.
In fact, this new launch made people more aware of the amount of energy they consume in a day or month.
We can say that the OEM’s effort in making their plans more transparent to the public has helped fuel the desire to learn more about personal fuel and power usage, helping them make decisions based on their understanding and paying reasonable prices for their consumption.
Today at least 96% of Singaporeans are aware of the OEM and have acted in response to the introduction of OEM in their lives.
They have started searching online about how electricity plans work and discussing the OEM with people, which definitely popularized the market and educated the public on basic knowledge.
Further, the EMA (Energy Market Authority) has taken the initiative to partner with the retailers in the OEM to increase awareness and start engaging customers through community events and roadshows where they encourage customers to ask questions or seek answers or even just discuss in detail what plans are most suitable for their lifestyle and how they can save up more in this regard.
Freedom of choice:
The whole point of introducing the OEM to Singapore was to allow people the freedom of choice as opposed to the singular SP Group that was powering the entire nation.
Then again, if you do not feel like this new market is anything beneficial for you, you don’t have to switch to a new provider.
You can choose to stay with the SPO Group at the same price you are currently paying.
There’s no pressure to switch to a new one even though the OEM was introduced into the industry.
If you’re thinking that moving to a new retailer will be a complex process and you don’t feel like taking the trouble, you couldn’t be more wrong.
This is the best part about switching to the OEM.
You don’t have to do a thing except make a choice about which retailer to go for.
Once you have decided, you can contact them and express your interest in joining their chain.
That’s all you have to do!
The retailer will contact the SP Group directly or whichever retailer you were currently under and make the transition for you.
You also don’t have to worry about your power getting disrupted because even though you change your retailer, they are still under the SP group’s grid.
Hence, your power supply will remain the same, and there will be no blackouts or cuts.
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