The Energy Market Authority (EMA) introduced the Open Electricity Market (OEM) initiative in the fourth quarter of 2018 in order to liberalise the electricity market in Singapore. The healthy competition that this brought about allowed every OEM retailer in Singapore to showcase their innovation. The best part about it? Consumers like yourself benefit by enjoying greater flexibility when it comes to the selection of your electricity plan. Below is a simple guide showing you how to pick a suitable retailer in 3 simple steps. Yes, that’s right, switching to another OEM retailer in Singapore isn’t as complicated as it seems.
1) Pick your Preferred Pricing Plan
There are currently three available options when it comes to an electricity plan for your property. These are the Fixed Price, Discount Off Regulated Tariff and Non-standard plans.
But, what exactly are the differences between these OEM plans?
Fixed Price Plan
Do you prefer transparent and stable electricity bills? Then the fixed price plan may be the most suitable for you.
As its name suggests, a fixed price contract means that you’ll pay a constant electricity rate throughout your contract period with your OEM retailer in Singapore. The fixed-rate that you’re paying for the whole duration of the contract can be either higher or lower than the regulated SP Group tariff, which is subject to review every quarter.
Here’s an example to summarize what your monthly costs may look like:
| April | July | |
| Regulated rate | $0.25/kWh | $0.20/kWh |
| Fixed rate | $0.18/kWh | $0.18/kWh |
Suppose your monthly electricity consumption is 500kWh, this table tabulates your monthly electricity bills for the months of April and July.
| April | July | |
| Electricity bills on regulated rate | $125 ($0.25/kWh x 500 kWh) | $100 ($0.20/kWh x 500 kWh) |
| Electricity bills on fixed rate | $90 ($0.18/kWh x 500 kWh) | $90 ($0.18/kWh x 500 kWh) |
Should you wish to sign up for this plan, you would be charged a monthly bill of $90 for the entire duration of the contract regardless of the fluctuating rates of the regulated electricity tariffs.
Discount Off Regulated Tariff Plan
The discount off regulated tariff plan is another option, should you wish for an affordable rate regardless of the variability in electricity tariffs.
Using the similar scenario above, when you sign up for a discount off tariff plan that offers a 20% discount, based on a monthly consumption of 500kWh, your new electricity bills will be tabulated in the table below.
| April | July | |
| Regulated rate | $0.25/kWh | $0.20/kWh |
| Discounted rate | $0.20/kWh | $0.16/kWh |
| Electricity bills on regulated rate | $125 ($0.25/kWh x 500 kWh) | $100 ($0.20/kWh x 500 kWh) |
| Electricity bills on discounted rate | $100 ($0.20/kWh x 500 kWh) | $80 ($0.16/kWh x 500 kWh) |
Compared to the fixed price plan, you may pay a slightly higher electricity bill. That said, you’ll have the assurance that you will always be paying a discounted rate compared to the regulated tariff for the entire duration of the plan.
Non-Standard Plan
Last but not least, we have non-standard plans. These plans are curated for homeowners who may wish to optimise their electricity usage to get the best bang for their buck, including peak and off-peak pricing, tiered pricing as well as no-contract offers. That said, we recommend that most homeowners stick to the fixed price or discount off regulated tariff plans, unless they have unique electricity consumption patterns.
The gist of peak and off-peak plans is that it allows property owners to optimise their electricity charges according to when they consume the most electricity in a day. This generally benefits households who have a greater usage during off-peak hours (late nights and weekends).
If your family is usually out during the day and uses a lot of air conditioning at night, then this type of plan may be suitable for your household.
Here’s an example of a peak and off-peak plan. Some OEM retailers in Singapore offer non-standard price plans and we recommend that you contact them if you have any questions.
| Peak (7am to 11pm) | Off-peak (11pm to 7am) | |
| Regulated rate | $0.25/kWh | $0.25/kWh |
| Discount (off tariff) | 10% | 30% |
| Discounted rate | $0.225/kWh | $0.175/kWh |
| Estimated usage | 150kWh | 350kWh |
| Electricity bills on regulated rate | $37.50 ($0.25/kWh x 150 kWh) | $87.50 ($0.25/kWh x 350 kWh) |
| Electricity bills on discounted rate | $33.75 ($0.225/kWh x 150 kWh) | $61.25 ($0.175/kWh x 350 kWh) |
In this example, while the homeowner’s electricity bills on the regulated rate will be $125 for the month, with the peak and off-peak plan, total electricity bills will be $95.
2) Check your OEM Plan Terms
Now that you’ve decided on your OEM pricing plan, what’s next? Well, there’s one important thing you’ll have to do.
Your shortlisted OEM retailers will each provide you with a fact sheet that outlines the key terms and conditions of the plan. The fact sheet would specify payment terms as well as early termination charges. For instance, you can find it here in section C of iSwitch’s Fact Sheet.
Additionally, the OEM provides a Consumer Advisory summarising what you as a consumer should be aware of before signing up with a retailer. Every OEM retailer in Singapore is legally required to obtain your acknowledgement before they contract you as a customer.
3) Close the Deal
Once you’ve made up your mind and have signed up with your retailer, the transition will be seamless. This means that your chosen retailer will work with SP Group to make the switch without you having to worry — no, your electricity supply won’t be cut, as you will continue to receive electricity through the national power grid operated by SP Group. What’s more, your new contract plan can even start as early as 5 working days.
Note: When it comes to billing arrangements, some retailers will provide you with the option to either receive a separate bill for your electricity usage or continue to receive your bills through SP Group’s billing services. SP Group will continue to charge you for non-electricity usage such as water, gas and refuse collection.
The Bottom Line
Switching to an OEM retailer in Singapore is super easy and will definitely help you cut costs.
Still unsure about what OEM electricity plan to get? Here’s a quick summary:
- Fixed Price Plan: If you prefer stability and transparency.
- Discount Off Regulated Tariff Plan: To consistently pay for a cheaper rate.
- Non-Standard Plan: If you’ve got unique electricity usage patterns and wish to optimise your spending.
With the launch of the Open Electricity Market, retailers are also incentivised to differentiate themselves and attract more customers. Some retailers, such as Ohm Energy, provide you with a no strings attached trial period to give you a feel of what it’s like to switch before you lock in a full contract.
Furthermore, different retailers will also offer different discounts and promotions too. In their attempt to attract and secure new customers, there’re many referral discounts and perks which are available. For example, iSwitch offers a 5% cash rebate when you pay with a UOB One Credit Card whereas. On the other hand, Sunseap has a $70 bill rebate for their DBS and UOB promotions.
Additionally, you may also want to refer to the Open Electricity Market price comparison tool to help you determine the plan that best suits your needs. All it requires is your housing type and a rough estimation of your average monthly consumption in kWh (you’ll have to refer to your latest electricity bill to get this).
Ultimately, these promotions are there to entice but shouldn’t be the key deciding factor when choosing your retailer — your needs the most important!
Happy switching!
This article was first published on 13 February 2021 and last updated on 23 June 2021 to include additional details.
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