What is the Open Electricity Market?
The Open Electricity Market (OEM) allows you to reap the benefits of having greater options and freedom during the purchase of your electricity. With the electricity market becoming more competitive, retailers will be implementing competitive pricing strategies and special offers which will greatly benefit buyers.
Below is a timeline of the OEM from the announcement date on 1 Nov 2018 to today, where households were gradually allowed to make their own decision regarding their preferred electricity provider. The rollout has been completed as of today.
Here is a infographic timeline of the entire OEM process:
What are the benefits of OEM?
Greater Options for electricity plans
The implementation of OEM has created a market for competition, driving 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 for 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!
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.
A switch to any of the electricity retailers will almost certainly provide you with an increase in savings compared to purchasing electricity from SP Group directly, regardless of what plan or package you choose. Households who have successfully switched to a retailer have paid an electricity rate that is approximately 20-30% less than the tariff.
To stand out from the competition, electricity retailers are spending more effort in designing and creating new and innovative products to 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!
Better Awareness on electricity consumption and plans
Ever since OEM was introduced, Singaporeans have become more interested in learning about their electricity consumption and new plans to help them increase their savings.
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.
To further educate the public, the Energy Market Authority (EMA) has partnered with retailers to increase engagement and educate consumers in helping them better recognise their options. 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.
With OEM, you have the option of exploring green options too. While doing research on which retailers to buy your electricity from, you will 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.
If you are interested in doing something good for the environment, you can do your part now! Here are some green energy options for you.
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.
The purpose of OEM is to provide consumers’ with choice. Thus, if you are still deciding whether or not to switch to a retailer, switching to a retailer is not compulsory and you can feel free to continue purchasing electricity from SP Group, at the controlled tariff price.
There is also no deadline for switching so it would be more important to familiarise yourself with the different options and plans available and make a decision whenever you are ready.