Only certain areas in Singapore were able to choose their preferred electricity provider before November 1, 2018. By May 1, 2019, this option will be available islandwide.
What are the implications of having this extended choice? By switching to another provider, will my electricity supply be interrupted? Numerous questions are floating around due to the novelty on such market structure locally.
Fret not, this post serves as a simple guide for you to navigate through the Open Electricity Market (OEM) and its related components.
Open Electricity Market
The Energy Market Authority (EMA) has been gradually liberalising the retail electricity market to competition, in a bid to make the market more vibrant and encourage retailers to provide innovative offers to consumers.
This concept was first started by the EMA in 2001 to only certain businesses but has since expanded to other groups of consumers such as Jurong residents in April 2018, and now to the rest of the country.
Must I Switch & What’s Next After Switching?
There is not a need to switch to another provider, nor is there a deadline. If you do nothing, you will continue to get your electricity from SP Group at a regulated tariff. The OEM exists to provide consumers a wider range of options (13 electricity providers as of now), and for them to choose a provider that best serves their electricity needs.
Post-switching, electricity supply will continue as per normal. No matter which electricity provider you choose, it will be distributed by the same reliable national power grid operated by SP Group. Only a meter change to a smart one will cause a disruption of up to half an hour due to the installation process.
Plans & Price
After the soft-launch in Jurong, the Peak/Off-Peak Plan was removed as an option to the wider rollout of the OEM. Now, there are two standard plans available.
A Fixed Price Plan subscriber will pay a constant flat rate set out by an electricity provider during their contract duration. No fluctuation of price is expected for this plan.
A Discount Off the Regulated Tariff Plan subscriber will pay a discount off the prevailing tariffs set by SP Group. A fluctuation of price is expected every quarter of the year but it will definitely be lower than the revised tariffs.
Other Factors for Consideration
Aside from price, there should be other factors to consider when switching. Here are two main ones.
Contract duration – The common term of commitment for electricity plans are 6 months, 12 months and 24 months. Noting that each contract has binding terms and conditions, such as charges for cancelling the contract, consumers should bear in mind of such things. This issue becomes more pronounced if one’s electricity provider does not provide quality service or if they are enticed by a better plan offered by a competitor.
Alternative offers – Some electricity providers might bundle in other incentives and perks to make their plans and offers attractive. This comes in the form of goodies, rebates and extra discounts off their bills to name a few. On top of that, some companies such as Sunseap Energy and Sembcorp Power diversify their electricity products by alternatively offering solar-based renewable energy.
With so many options in place, always remember to only engage with an EMA-authorised Singapore electricity provider to ensure that you receive legitimate and proper service for your electricity needs.
