Since 1994, Singaporeans have been buying electricity directly from the SP Group. But times are a changin. The Energy Market Authority (EMA) began rolling out the Open Electricity Market (OEM) initiative in November of last year, after a successful soft launch in April 2018. The launch is staggered into phases, but by May 2019 all Singaporean households and business will be able to purchase electricity from 13 different OEM Retailers.
These retailers are offering up a myriad of price plans and options. With so many choices, it can get a bit overwhelming as we did not have much of a choice before.
This also unearths a host of other other questions. Which OEM retailer is the cheapest? Which one is more reliable? Will the delivery of electricity to my house be affected? Should I switch to an OEM Retailer?
All these questions about the OEM will be answered, alongside an explanation of the types of plans, a breakdown of the most value-for-money choices available and other factors such as freebies and the convenience factor. Read this and you’ll be well equipped to pick the best choice for your household’s needs!
Most recently, Zone 3 was opened up to the OEM. If you are staying in these areas please take note.
– Macpherson, Braddell
– Geylang, Eunos
– Katong, Joo Chiat, Amber Road
– Bedok, Upper East Coast, Eastwood, Kew Drive
– Loyang, Changi
– Tampines, Pasir Ris
Things You Need to know about the Open Electricity Market (OEM)
- It is not compulsory to switch to the OEM. You can still stick to SP Group and pay the tariff that they charge.
- Switching from the SP Group to an Open Electricity Market retailer will not cause any disruptions to your house’s supply of electricity. This is because the SP Group is still handling operations while the retailers handle billing and administration.
- The SP Group is slowly replacing all the old analog meters to the new AMI digital meter for free. However, this rollout is estimated to take about 10 years. If you would like the new AMI digital meter now, you can pay SP Group $40 (before GST) to install it.
- Read the fine print! Before signing any contract, look out for additional costs not mentioned in the stated price.
- This is the current electricity tariff rate taken from the EMA website.
Should You Switch to an OEM Retailer?
The short answer? Yes!
Even though it is not compulsory, you will be saving up to 30% on your bill straight away. For example, electricity retailers like Sembcorp Power are charging 17.78 cents per kWh for a 24-month Fixed Price Plan. So even before all the stacked promotions, switching to an OEM Retailer will save you 30% off your bill from the get-go.
What Price Plans Are The OEM Retailers Offering?
Currently, there are two main types of price plans available, the Fixed Price Plan or the Discount Off Regulated Tariff Plan. Here is how they work.
Fixed Price Plan & Price
This plan means that you pay a fixed price for the whole length of your contract and immunize you from all the fluctuations of the standard SP Group tariff. The discount will vary depending on the quarterly fluctuations based on the tariff, but based on current oil price trends, you will save more with the Fixed Price Plan option. Choose this plan if you want to lock in a price on the tariff for peace of mind.
To compare the prices across the plans, we used this comparison tool provided by the Open Electricity Market Website. We used the 4 room HDB housing type as a benchmark as it is currently the most common dwelling type in Singapore, according to Singstat. The time period was locked in at 24 months as most of the electricity retailers provided this option. This option also ensures a long period of stability for the price.
|Electricity retailer||Fixed price (per kWh)||Contract duration||Estimated monthly bill|
|iSwitch Pte Ltd||$0.1762||24 months||$62.77|
|Seraya Energy Pte Ltd (Geneco)||$0.1778||24 months||$63.60|
|Sembcorp Power Pte Ltd||$0.1778||24 months||$63.60|
|Keppel Electric Pte Ltd||$0.1778||24 months||$63.60|
|Senoko Energy Supply Pte Ltd||$0.1778||24 months||$63.60|
|PacificLight Energy Pte Ltd||$0.1795||24 months||$64.21|
|Tuas Power Supply Pte Ltd||$0.1798||24 months||$64.32|
These are the most affordable Fixed Price Plans you can find on a 24-month contract. Even though iSwitch offers the most affordable plan, they charge an additional monthly $4.95 (before GST) service fee.
Other retailers like Sembcorp Power, Keppel Electric, Geneco, and Senoko are offering the same rate at $0.1778 per kWh. So please remember to read your factsheets carefully!
Discount Off Regulated Tariff Plan & Price
Alternatively, you can consider the Discount off Regulated Tariff price plan. Instead of a fixed price for the length of your contract, the price you pay will be pegged to the SP Group tariffs but with a discount. Although a cheaper bill is guaranteed, this may not be cheaper than the savings you can get on a Fixed Price Plan. Choose this plan if you think that the regulated tariff will stay or go lower.
We used the same methodology as the Fixed Price Plan but expanded the scope, as the length of the contract does not affect the price. This is due to the fact that the rate is a percentage pegged to the Discount off Regulated Tariff.
|Electricity retailer||Discount off regulated tariff||Contract duration||Estimated monthly bill|
|Ohm Energy||25.0% off||6 and 12 months||$68.47|
|Diamond Electric||24.0% off||12 months||$69.38|
|ES Power||23.0% off||12 and 24 months||$70.30|
|Sunseap Energy Pte Ltd||23.0% off||6 and 12 months||$70.30|
|iSwitch Pte Ltd||22.8% off||12 months||$70.48|
|Sembcorp Power Pte Ltd||22.5% off||24 months||$70.75|
|Best Electricity Supply Pte Ltd||21.0% off||12 Months||$72.12|
Special Plans, Freebies & Promotions
Furthermore, some OEM retailers offer more niche plans and packages that cater to users with different needs.
The more common one is the “peak and off-peak” pricing plan. The peak hours are from 7am to 11pm while the off-peak hours are from 11pm to 7am. Unless you use the majority of your electricity during these off-peak hours and have an AMI digital meter – we would recommend that you stick to the standard plans.
On top of these standard plans, OEM retailers have been offering rebates, free gifts, promotions and discounts on products with their partner merchants.
All in all, we would recommend that you switch to an OEM Retailer, just for the cost savings you get on the SP Group tariffs alone.
At IUIGA we believe that you should not be overpaying for quality and that you deserve the best value possible.
This is why we are partnering with Sembcorp Power to give you this exclusive offer that saves you from overpaying for electricity, and get the best value possible for your needs.
Sembcorp Power is giving IUIGA members staying in areas with postal code 34 to 83, an exclusive $60 bill rebate when you sign up for the promotional 24-month fixed electricity price plan at 17.78 cents per kWh. This is one of the best deals on the market and will save you over 30% on the regulated SP tariff.
And by choosing Sembcorp Power, you will help conserve the environment by avoiding carbon dioxide emissions of over 500kg for a 24-month plan. This can mean more than 650,000 tonnes of carbon dioxide emissions avoided across 1.3 million households in Singapore!*
Furthermore, Sembcorp Power is offering up to $1000 in gifts and discounts which includes a complimentary 12 months Home Protection Plan underwritten by Great Eastern.
This deal is only valid till 31st March 2019.
*Calculated based on a 24-month contract with 1,200kWh of green power and Singapore Grid Emission Factor (GEF), 2018.