Homeowners and businesses in Singapore are now able to flex their freedom in choosing an electricity retailer due to the Open Electricity Market (OEM). This move was first initiated in 2001 by the Energy Market Authority solely for big businesses and a Jurong-based soft launch in April 2018 but now, everyone can have a slice of the pie.
The OEM will be done in four phases, in which zones are divided according to their postal codes. As of now, the OEM is in its third phase and the final phase will roll out on May 1, 2019. Currently, every area in Singapore is able to benefit from the 13 electricity retailers in the OEM except for those with postal codes starting with 01 to 33.
Here comes the hard part. Deciding on one!
What Can I Choose From?
The 13 electricity retailers mainly offer two types of plans. Customers who decide on a Fixed Price Plan will pay a fixed rate throughout their contract duration which may range from 6 months to 24 months. This plan provides stability is one’s monthly bill as it won’t waiver against the changes in quarterly reviewed tariffs.
Others who sign up for a Discount Off The Regulated Tariff Plan will experience a monthly percentage discount from the prevailing regulated tariff. No matter the tariff, this plan will provide a price which is always cheaper.
As of the first quarter of 2019 (1 January 2019 to 31 March 2019), the prevailing tariff set by SP Group stands at 25.52 cents/kWh.
Taking a 4-room flat in Singapore with an average consumption of 360 kWh of energy monthly, the following gives a breakdown of their monthly electricity bill.
If one sticks with SP Group, they will spend a total of $91.87 on their electricity bill per month.
Fixed Price Plan
From all available plans, Geneco offers the lowest 6-month plan of 17.63 cents/kWh and it will yield a monthly electricity bill of $63.47 monthly. A lower bill – in comparison to sticking with SP Group – is evident even if one chooses the most expensive 6 month-plan of 19.70 cents/kWh by Best Electricity Supply, raking up a bill of $70.92.
Needless to say that the prices are lower for the ‘Discount Off The Regulated Tariff’ plans as consumers will enjoy a set percentage off tariffs set by SP Group.
For example, ES Power’s ‘GFREEDOM (100% Carbon Neutral Electricity)’ plan provides a monthly discount of 23% off regulated tariffs. Taking the current quarter’s tariff, the new rate is set at 19.65 cents/kWh and a corresponding electricity bill of $70.74 a month.
Is That All I Need to Know Before Considering a Retailer?
Different companies have different causes they support and unique selling points.
To name one, by switching to another electricity retailer, consumers can save the Earth beyond saving just money.
Companies such as Sunseap Energy and Sembcorp Power provide the option for solar power to their customers, this in turn provide an avenue for many out there to build a greener future. Sunseap’s solar power does not need a consumer to have solar panels installed on their roofs. Instead, their PV systems will transmit clean the energy through SP Group’s national grid. Convenient and green, that is the way the future should be.
So, before choosing an electricity retailer in Singapore, explore what else they offer and see if what they provide is in line with what you seek.