Updated 29 July 2019
Open electricity market (OEM) is a new initiative here in Singapore to diversify the electricity market. Similar to how we can choose from Singtel, Starhub, M1 as our phone provider, the same can be said with OEM.
To keep it simple, you will still receive the same electricity you always have. The electricity provided to homes no matter which provider you choose will come from the national power grid. Only now, your monthly electrical bill could be lower depending on the provider you choose! If you decide not to do anything, your electricity provider will remain the same with SP Group.
The soft launch of OEM kicked off in May 2018 for Jurong residents. Since 1 November, OEM is available for the whole of Singapore in phases.
First 2 digits of postal code
53-57, 79-80, 82-83
There are 13 new electricity providers for you to choose from! With all the various commitment length and prices available, choosing a provider could be a very daunting and confusing process. Should you choose a 6 month, 12 months or a 2 year contract? Or would it best for you to simply just do nothing? Feeling confused? Us too.
The first thing to note is that there are two types of price plans available. Discount Off the Regulated Tariff and Fixed Price. Discount Off the Regulated Tariff (tariff is revised every quarter) gives you a set discount off from the current tariff price. While fixed price, is fixed. Even if the tariff is higher or lower you’ll still be paying the same amount throughout your contract duration.
Now that you have a better idea of the available price plans. Let’s take a look at the different plans available from the provider.
On average, a 4 room HDB flat uses about 366.75 kwh of electricity monthly. This estimates their current electricity bill to be about $88.50 monthly.With a change in provider, your bill could be as low as $65.94 monthly! Sembcorp Power Pte Ltd offers a 24 month fixed price plan at 17.98 cents/kwh.
Alternatively, Keppel Electric Pte Ltd offers a 24 months contract for a 22% discount off the regulated tariff. While the estimate here is higher at $73 monthly, you could reap in greater savings down the line when the tariff price is lower.
For those looking for a more enviromentally friendly option, Sunseap Powers Pte Ltd offers a 50% solar energy option for a 24 month fixed plan option. With a 21.61cents/kwh your monthly bill will be $79.25.
Or maybe go for the ES Power plan where it will be a 100% Carbon Neutral Electricity at $67.34 monthly for 24 months. *
With all these various provider plans to consider, use the price comparison tool available. https://compare.openelectricitymarket.sg/#/home It will calculate the monthly estimate based on your household usage. From here, compare and select the best plan for your household needs. This takes a lot of time out from all the guess work you’d have to do.
Once you’ve used the comparison tool and still feel that your electricity bill may still be a bit too high, you might be facing an electrical issue. The best way to know for sure is to call ilet and we’ll do an Electrical Health Check. This check will help you identify any electrical problems. We can then help you solve that problem and in the long run possibly reduce your electricity bill!
If you’re satisfied with the prices offered from the comparison tool, here are some things to look for to aid your decision. Be aware of the duration and early termination penalties of the plan you are subscribing to. Some plans carry a $30 early termination fee for the remaining months in the contract! Also, be aware of any security deposits you need to make with the provider.
While a short 6 month plan might seem like a good idea, be clear of the auto renewal policy as it might not offer the plan at the same initial rate. As OEM is still new here, most providers have special discounts and deals available like free home insurance etc. So be sure to keep a look out for that!
In our opinion, switching to a short term plan might not the best idea for greater savings overall. It is A sure way to ensure a constant discount is to sign up for a discount off regulated tariff plan. This way, no matter the tariff, you’re ensured a discount!