The Open Electricity Market (OEM) in Singapore is all set for its nationwide extension starting November 1, 2018 after a welcoming response from the Jurong region. Consumers will now have the option to choose where they want to buy their electricity from. This extension will roll out zone-wise, and will culminate by May 1, 2019.
What is the Choice Being Offered to Consumers?
Consumers, who previously purchased electricity from SP Group, now have the ability to switch to any provider that suits their requirements. An important point to note here is that this switch is not compulsory, and consumers may choose to remain with SP Group at the quarterly-revised regulated tariffs.
What If Consumers Change Their Mind in the Future?
In addition to the fact that the switch is not mandatory, there is no deadline for this switch as well. Which means if consumers who chose to remain with SP Group change their minds in future, they can still choose to switch to any provider of their choice. Similarly, if consumers want to switch from one provider to another, they may do so in accordance with the policies of their current provider.
What if Consumers Don’t Do Anything?
If consumers don’t make any move, they will continue to be provided with electricity by SP Group. SP Group owns the national power grid in Singapore and ensures that there is no disruption in the power supply for any consumer, whether they switch to a new supplier, or choose to remain with SP Group.
What Are the Types of Electricity Providers in the Open Electricity Market?
There are essentially two kinds of providers in the OEM – the ones who generate their own electricity and the ones who buy excess electricity from power generating companies and then sell it to consumers at retail prices. While the former exercises more control over the market prices, the latter is constrained by the market forces.
What Kinds of Price Plans Do Providers Offer?
Electricity providers provide two standard price plans to consumers. The first plan, called the Fixed Price Plan requires the customers to pay a fixed price throughout the duration of the contract, regardless of the changes in regulated tariffs. The other plan, called the Discount Off the Regulated Tariff Plan, provides the customers with a fixed discount on the regulated tariffs set by the Energy Market Authority.
What Should Consumers Consider Before Switching?
Apart from the suitability of price plans, there are several other factors that may influence one’s choice of provider. For instance, some providers would present incentives which may reduce the effective price of the plan. Another such factor is the convenience of consumer. Some providers bill directly while others do it via SP Group. Households may find the latter choice more convenient, because the various bills like that of water, gas and electricity will be in one consolidated bill.
Residential consumers and businesses can now choose who they want to buy their electricity from, owing to the liberalisation of the electricity market.
Consumers should study all the terms and features of an offered price plan before picking their preferred electricity provider in Singapore.