[2023 Edition] A Guide to Choosing the Best Open Electricity Market (OEM) Plan for Your Home

Have you considered switching to an electricity retailer in Singapore’s Open Electricity Market (OEM)?

Since its launch in 2018, about half of Singaporean households have made the switch, but there are still many who continue to pay the tariff rate. With increasing electricity prices due to rising fuel costs, now might be the right time to consider switching. In this article, we’ll provide you with an overview of the available choices and help you make the best decision for your needs.

Understanding the Singapore Energy Market

Before we dive into the available plans, let’s first understand how electricity is produced and sold in Singapore. The electricity market consists of multiple players, starting with power generation companies that operate power plants. These companies bid for contracts to generate and sell power on the wholesale electricity market. Retailers like SP Group then buy electricity in bulk from the wholesale market to supply to consumers.

SP Group is responsible for the national power grid and purchases electricity on behalf of Singapore households. The prices consumers pay are determined by the Energy Market Authority (EMA) and include both fuel and non-fuel costs. The tariff is revised every quarter to ensure consumers are protected while allowing SP Group to cover operational costs.

Introducing the Open Electricity Market (OEM)

The Open Electricity Market (OEM) was introduced to liberalize the electricity market in Singapore. It allows residential households to buy electricity from retailers other than SP Group. This gives consumers more choices and the potential for cost savings. SP Group continues to operate the national power grid, so you can expect reliable power regardless of whether you switch or not.

Currently, there are several electricity retailers in the market, including Geneco, Keppel Electric, PacificLight Energy, Sembcorp Power, Senoko Energy Supply, Sunseap Energy, Tuas Power Supply, and Union Power. Some retailers that previously operated, such as Best Electricity Supply, Diamond Electric, iSwitch, and Ohm Energy, have ceased their operations.

Benefits of the Open Electricity Market

The OEM offers several benefits to Singapore residents:

  1. More Choices for Electricity Plans: Unlike the fixed tariff rate offered by SP Group, retailers provide various electricity plans. You can choose the plan that best suits your consumption habits and potentially save on costs.
  2. Competition Leading to Innovation and Better Prices: With retailers competing for customers, they strive to offer better prices and value-added services. This competition can result in more promotions and perks for consumers.
  3. Increased Awareness of Energy Consumption: The OEM encourages consumers to be more conscious of their electricity usage. By being aware of when and how much electricity is being used, households can make more informed decisions and save money and resources in the long run.

Types of Price Plans Offered

Retailers typically offer two types of price plans: Discount Off Regulated Tariff plans and Fixed Price plans.

Discount Off Regulated Tariff plans offer a discount off the prevailing regulated tariff price, which is revised quarterly. Fixed Price plans, on the other hand, provide a fixed rate throughout the contract duration.

It’s worth noting that Peak and Off-Peak plans, which offer different prices based on the time of day, were initially available but have been withdrawn due to a lack of interest. They may still be offered as “Non-Standard” plans.

Choosing the Best Plan

As of July 11, 2023, there are no Discount Off Regulated Tariff plans available. However, there are several Fixed Price plans offered by different retailers.

  • For short-term plans (6 months), Geneco’s “Give Us A Try” plan offers the best rate at 29.30 cents/kWh. PacificLight Energy’s “Easy Peasy” plan has a lower rate at 27.80 cents/kWh, but it has an additional daily charge of 55 cents. Union Power also offers a short-term plan, but its rate is significantly higher at 48.60 cents/kWh.
  • For mid-term plans (12 months), the best rates are offered by Geneco’s “Get It Fixed 12,” Keppel Electric’s “FIXED12,” and PacificLight Energy’s “Savvy Saver 12,” all at 28.98 cents/kWh. Other retailers also offer rates lower than the regulated tariff for their 12-month plans.
  • For long-term plans (24 months), the best rate is 28.98 cents/kWh, offered by Geneco’s “Get It Fixed 24,” Keppel Electric’s “FIXED24,” and PacificLight Energy’s “Savvy Saver 24.” These rates are slightly lower than the regulated tariff.

Considerations and Conclusion

While the number of electricity plans and discounts may be lower compared to previous years, switching to an OEM retailer can still provide cost savings. The cheapest plans available are around 3% cheaper than the regulated tariff.

Before making a decision, consider your consumption habits and the contract duration that suits you best. Take note of any additional charges or perks offered by retailers. It’s also important to check for the most up-to-date pricing, as rates may change.

In summary, the OEM offers more choices, competition, and increased awareness of energy consumption. Taking advantage of the available plans can potentially lead to cost savings for your household.

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Benjamin Low
Benjamin Low

Benjamin is known as The Passive Income Guy. He has helped hundreds of people to build passive income. He is also a member of the Million Dollar Round Table, and Certified Financial Planner™ (CFP®) and Certified Private Banker (CPB).

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