Since the launch of the Open Electricity Market (OEM) in 2018, over 60% of Singapore residential households have switched to electricity retailers.
The remaining households are paying the tariff rate to SP Group – and will likely continue to do so for the foreseeable future, since neither incentives nor educational outreach have convinced them to make the switch. Electricity prices are expected to remain relatively stable – near the 32.57 cents electricity tariff rate for July to September 2024.
For those want to switch to an OEM or renew our existing OEM plans, here is an overview of the choices available so you can make the best choice for your needs – whether that’s for your new home, or your existing OEM contract expiring and you’re wondering what the available plans are right now.
From a high of 12 OEM retailers at its peak, currently only 6 OEM retailers remain, with many also cutting down their product offerings significantly.
Read Also: What Happens When You Need To Change Your Open Electricity Market (OEM) Retailer
5-Minute Explanation: How Electricity Is Produced And Sold In Singapore
In order to understand what an electricity retailer is, we first need to understand how electricity is produced and sold in Singapore. The Singapore energy market has always been an ecosystem made up of multiple players.
Everything starts with the electricity produced by power plants, which are owned and operated by power generation companies. Every half an hour, these power generation companies bid for contracts to generate and sell specified quantities of power on the wholesale electricity market. Retailers, including SP Group, then buy electricity in bulk from the wholesale electricity market to supply to consumers.
The electricity generated is then transmitted from the power plants and distributed across the island via the national power grid, which is also operated by SP Group.
In other words, SP Group buys electricity in bulk from the power generation companies on behalf of Singapore households. The company is also responsible for the infrastructure for reliable power delivery island-wide and billing households for electricity consumed.
To ensure consumers are protected, prices that Singapore households pay is based on the tariff set by the Energy Market Authority (EMA), with the aim of being as low as possible while allowing SP Group to cover operational costs.
The tariff is revised every quarter and consists of two parts: 1) fuel cost and 2) non-fuel cost. The fuel component is based on imported natural gas prices, which is tied to oil prices in commercial contracts, in the preceding quarter. The non-fuel component covers the cost of running the electrical infrastructure and support services like meter reading.
In effect, the tariff system insulates Singaporeans, to some extent, from the electricity production and purchase process, as well as near-term price fluctuations due to the global oil market, since 95% of Singapore’s electricity supply is generated using imported natural gas.
Read Also: 5 Questions About The Open Electricity Market That You (And Your Parents) Probably Have
What Is The Open Electricity Market (OEM)?
The Open Electricity Market (OEM) is part of EMA’s effort to liberalise the electricity market, allowing residential households in Singapore to buy electricity from retailers other than SP Group.
Think of this as similar to how different telecommunication providers in Singapore such as SingTel, M1, Starhub and Circles.Life offer different price plans to attract different kinds of customers.
To be clear, SP Group continues to operate the national power grid, so you can be assured of the same reliable power that you come to expect living in Singapore. For those who choose not to do anything, SP Power will continue to sell you electricity at the regulated tariff.
Here is the current list of electricity retailers that you’ll be able to buy their electricity from:
Best Electricity Supply– Operations have ceased since 21 October 2021
Diamond Electric– Discontinued since 6 November 2021
Geneco by Seraya Energy
iSwitch– Operations have ceased since 11 November 2021
Keppel Electric
Ohm Energy– Exited on 15 October 2021
PacificLight Energy
Sembcorp Power
Senoko Energy Supply
Sunseap Energy No pricing information is available
Tuas Power Supply
Union Power No pricing information is available on their website
The 6 remaining OEM retailers are backed by power-generation companies. Even though they too have minimised the types of contracts available to customers, they should be strong enough to continue operations as an OEM retailer.
Benefits Of The Open Electricity Market
The opening up of the electricity market for Singapore households comes with a number of benefits for Singapore residents.
# 1 More Choices For Electricity Plans
Compared to paying a fixed, quarterly tariff rate which is what SP Group offers, OEM retailers generally allow you to choose from two types of electricity plans. Different plans give Singaporeans choices on how they wish to buy electricity and who they wish to buy it from. They have the potential for large cost savings for households who choose an appropriate plan based on their consumption habits.
# 2 Competition Leading To Innovation And Better Prices
Competition among retailers that essentially sell the same product (electricity) means that companies need to provide great service at great prices. Beyond price, retailers are also competing to value-add to their customers.
For example, some retailers are offering free months of electricity, referral cashback, and other promotional rewards. We can choose the one that makes the most financial sense for us.
Read Also: 3 Types of Insurance Every Homeowner Needs To Know About For Protecting Their Home
# 3 More Awareness Of Energy Consumption
The introduction of OEM retailers and different plans should make Singaporeans more aware of the electricity market in Singapore and take stock of their own consumption patterns.
Being more conscious about when we use electricity, i.e. how much power our appliances are using, and areas of wastage will hopefully lead to more considered electricity use, saving both money and natural resources over time.
Overview Of Types Of Price Plans Offered By OEM Retailers
Before we compare the different standard price plans offered by each retailer, it’s important to first understand how each works. In general, retailers offer two types of plans: 1) Discount Off Regulated Tariff, 2) Fixed Price.
Here is how each type of electricity plan works.
1) Discount Off Regulated Tariff plans offer a discount off the prevailing regulated tariff price, which is revised every quarter.
Source: Energy Market Authority
2) Fixed Price plans mean you pay a fixed rate throughout the duration of your contract. While the rate is not subjected to quarterly fluctuations based on the tariff, it may be higher or lower than the tariff over time.
Source: Energy Market Authority
Peak and Off–Peak plans were offered to Jurong residents but have mainly been withdrawn when the OEM rolled out nationwide, due to the lack of interest among consumers. Only PacificLight Energy and Senoko Energy offer a Peak and Off-Peak plan. Under their plan, you pay different prices for electricity usage depending on the time of day. If your household’s electricity usage is skewed towards mainly off-peak hours (in the night), a Peak and Off-Peak plan could potentially result in significant savings.
*All prices are accurate at the time of writing and might be subject to change. Please contact individual retailers for the most updated pricing.
Best Discount Off Regulated Tariff Plans Across OEM Retailers
As of 6 September 2024, there is only one Discount Off Regulated Tariff Plan offered by PacificLight Energy.
Best Fixed Price Plans Across OEM Retailers
As of 6 September 2024, these are the Fixed Price plans available, which you can compare below:
Retailer
Name Of Plan
Price (with GST)
Contract Duration
Keppel Electric
ecoGreen 12
41.97 cents/kWh
12 months
ecoGreen 24
41.41 cents/kWh
24 months
Fixed 12
29.98 cents/kWh
12 months
Fixed 24
29.42 cents/kWh
24 months
PacificLight Energy
Savvy Saver 12
30.07 cents/kWh
12 months
Sunny Side-Up
30.40 cents/kWh
12 months
Savvy Saver 24
29.42 cents/kWh
24 months
Stack It Up
from 27.08 cents/kWh
24 months
Save While Sleeping
20.05 cents/kWh from 11pm to 7am
37.34 cents/kWh from 7am to 11pm
24 months
Savvy Saver 36
28.95 cents/kWh
36 months
9 to 9
16.95 cents/kWh from 9pm to 9am
39.57 cents/kWh from 9am to 9pm
No Contract
Easy Peasy
28.06 cents/kWh
No Contract
Sembcorp
Fixed Price Plan
30.07 cents/kWh
12 months
12M Sunshine Plan (Green)
42.31 cents/kWh
12 months
Senoko Energy
LifeSavvy24
20.05 cents/kWh from 11pm to 7am
36.95 cents/kWh from 7am to 11pm
24 months
LifePower 12
29.68 cents/kWh
12 months
LifePower 24
29.42 cents/kWh
24 months
LifePower 36
28.95 cents/kWh
36 months
LifeGreen 24 (100% certified Solar)
29.75 cents/kWh
24 months
Geneco (Powered by YTL PowerSeraya)
Give Us A Try
29.10 cents/kWh
6 months
Get It Fixed 12
29.68 cents/kWh
12 months
Get It Fixed 24
29.42 cents/kWh
24 months
Tuas Power Supply
PowerFIX 12
29.68 cents/kWh
12 months
PowerFIX 18
29.63 cents/kWh
18 months
PowerFIX 24
29.42 cents/kWh
24 months
PowerFIX 36
29.30 cents/kWh
36 months
Currently, the only short-term (6 months) plan is Geneco – Give Us A Try at 29.10 cents/kWh. Another short-term option is PacificLight Energy – Easy Peasy, which has no contract at 28.06 cents/kWh but levies an additional daily charge of 55 cents. These plans offer some discounts off the regulated tariff but still give you the flexibility to switch plans in the future with a shorter lock-in period.
For a mid-term plan (12 months), the best rate is offered by Senoko Energy – LifePower 12, Geneco – Get It Fixed 12 and Tuas Power Supply – PowerFIX 12, at 29.68 cents/kWh. All the other retail providers are currently offering rates lower than the regulated tariff for their 12-month plans, which provides a good incentive for consumers to make the switch to save on their electricity bills. Furthermore, retailers like Geneco have promo codes for their longer 12-month and 24-month plans, which gives even more savings.
The only mid-term plan (18 months) is offered by Tuas Power Supply – PowerFIX 18 at 29.63 cents/kWh. As expected, it offers a slightly lower rate than its 12-month contract, but a slightly higher rate than its 24-month contract.
Except for Sembcorp, all the other OEM retailers offer a competitive longer-term plan (24 months). Senoko Energy – LifePower 24, Geneco – Get It Fixed 24, PacificLight Energy Savvy Saver 24 and Tuas Power Supply – PowerFix 24 all charge the same rate at 29.42 cents/kWh.
If you want an even longer period of security over the rates, you could consider the 36-month plans by PacificLight – SavvySaver 36 and Senoko Energy – LifePower36 offer their plans at 28.95 cents/kWh.
All of these different plans offer consumers some discounts compared to the current regulated tariff rate. Though, some of these discounts might be marginal compared to the regulated tariff.
Interestingly, there are also options for those who mainly use electricity at night. For example, the Senoko Energy – LifeSavvy 24 is a 24-month contract plan that offers a lower rate from 11pm to 7am at 20.05¢/kWh, while charging 36.95¢/kWh from 7am to 11pm. Alternatively, the PacificLight Energy – 9 To 9 plan charges 16.95 cents/kWh when you use electricity from 9pm to 9am and 39.57¢/kWh from 9am to 9pm, with no contract tie-down. However, there is an additional daily charge of $1.01, regardless of usage.
Additionally, PacificLight – Classic 60 plan is a 60-month (5-year) plan is the only plan in the market that offers a 3% discount off regulated tariff plan. You can also enjoy a further 5% prompt payment discount off your monthly bill.
Which Plan Should I Choose?
The current SP tariff rate, which applies from 1 April to 30 June 2024, is 32.57 cents/kWh (with GST). Prices have marginally slightly from 32.47 cents/kWh (with GST) in the previous quarter.
As you can see from the table above, consumers can enjoy a lower cost by switching to an OEM retailer. The cheapest OEM plan that you can get is 28.95 cents/kWh on a 2-year plan with some of the retailer providers. This is around 11.1% cheaper than the current SP tariff rates. The one risk is that electricity prices drop by more than that amount in the 24 months – which currently looks unlikely.
You could also opt for the PacificLight – Classic 60 plan, the only discount off regulated tariff plan in the marketplace today. This will guarantee that you always pay a slightly lower rate compared to the existing tariff rate. The risk with such a plan is that you are locked in for 5 years, and if electricity prices rise steeply, you will not enjoy the fixed rate you could have locked in on other OEM plans for up to 36 months.
This article was first published on 1 October 2018 and has been updated to reflect the latest prices.
The post [2024 Edition] Complete Guide To Choosing The Best Open Electricity Market (OEM) Plan For Your Home appeared first on DollarsAndSense.sg.
