What is the Singapore Open Electricity Market (OEM)? OEM allows you to reap the benefits of having greater options and freedom during the purchase of your electricity. In a liberal electricity market, retailers are likely to begin implementing competitive pricing strategies that buyers can benefit from. Here’s a look at the top benefits of switching to OEM.
Timeline
OEM was launched on 1 November 2018. Since then, households have gradually been allowed to choose their preferred electricity provider. The rollout process was just completed at the end of 2020.
Here’s a look at how far OEM has come.
Benefits of the Singapore Open Electricity Market
1) Greater Options for electricity plans
The implementation of OEM has created a market for competition. This has driven local retailers to lower their prices and offer electricity packages lower than the standard SP Group tariff.
With the OEM initiative in place, there are three main options for you to purchase your electricity:
- Directly from SP Group, at a controlled tariff price
- From the wholesale electricity market (WEM), through SP Group at a half-hourly wholesale price — depending on the current demand and supply of the WEM. This is applicable to all consumers – households and businesses.
- Link up with an electricity retailer who will provide you with a package to suit your energy needs and budget. Check out some of the cheapest electricity retailers in Singapore here!
2) Lower Cost
With more choices in the open market as well as competitive pricing strategies, many electricity retailers are providing amazing discounts on top of lower prices, coupled with higher transparency in electricity packages and plans.
With that in mind, a switch to any of the electricity retailers will almost certainly allow you to save more! Households that have successfully switched to a retailer have experienced electricity bills that are 20-30% lower than the tariff.
3) Increased Innovation
Electricity retailers are spending more effort in designing new and innovative products to stand out from the competition and attract more customers. On top of having fixed prices and tariff price discounts, some retailers have joined forces with third parties offering rebates and loyalty programs, off-peak and peak plans and even monthly flat rate bundles. There are even special bundles that come with insurance, vouchers and free movie tickets available!
Additionally, if you meet the eligibility criteria to use U-Save rebates, you can continue to offset your electricity bill even after switching to a retailer. You can find out more on how to use U-Save here!
4) Greater Awareness of Electricity Consumption
The OEM has made Singaporeans more interested in learning about their electricity consumption.
As of today, 96% of residents in Singapore know about the OEM initiative and 75% have responded after hearing about OEM, by searching for more information online and openly discussing OEM and their electricity plans with their family and peers.
The Energy Market Authority (EMA) has also partnered with retailers to increase engagement and educate consumers on OEM. They have since hosted up to 10 community events and roadshows to provide a convenient space for consumers to raise their questions and seek help in choosing the best options for their needs.
5) Go Green!
Always wanted to do your part to fight climate change? You can do your part now! With OEM, you have the option of exploring green options too. While doing research on which retailers to buy your electricity from, you’ll find that certain retailers offer green electricity plans, on top of regular electricity plans, that will not only save you money but also benefits the environment.
6) Easy Switching
Switching to a retailer is extremely simple and you can spend most of the process doing absolutely nothing! Once you have decided on your retailer, they will be handling the entire process for you directly with SP Group.
Also, you don’t have to worry about facing a disruption in energy supply during your switch. As SP Group still continues to operate as the national power grid, they will still deliver electricity to consumers at the same rate regardless of who you are purchasing your electricity from. Hence, you will not need to install any special hardware or live with disrupted electricity.
7) Freedom to Decide
The Singapore Open Electricity Market was created to give consumers a choice. Still undecided on which OEM retailer to switch to? Fret not! Participating in OEM is not compulsory and you can continue to purchase electricity from SP Group. There’s also no deadline for switching. So, begin by familiarising yourself with the different options and plans available before making a decision.
This article was first published on 14 December 2020 and last updated on 6 May 2021 to include additional details.
