Open Electricity Market (OEM): Which plan will be cheapest for you?

oem open electricity market singapore utilities best plan

Since November 2018, Singapore households were finally able to buy electricity from the Open Electricity Market (OEM) – simply put, electricity retailers other than SP Group.

These retailers offer different price plans and electricity rates to cater to the different ways households consume electricity.

Sounds complicated, but there’s a way to identify electricity packages that will guarantee savings (More on that later!).

Guide to Singapore’s Open Electricity Market (OEM)

1. How to choose your electricity retailer
2. Comparing your options
3. How to switch to an OEM electricity retailer

1. How to choose your electricity retailer

Ok, first things first, a quick explanation:

SP Services sells electricity at a regulated tariff that’s revised every quarter, based on fuel costs, operational costs and more. (Here’s a complete explanation, if you must know!)

It’s important to know this in order to understand how you’ll save money by switching to another electricity retailer in the OEM, since their electricity rates are pegged to this regulated tariff.

Tip: The regulated tariff is relatively stable, fluctuating by +/- 2 cents per kWh quarterly at most.

The current tariff (2019Q3, July to September 2019) is 24.22 cents per kWh (25.92 cents per kWh inclusive of GST).

Electricity retailers in the OEM offer 3 main types of electricity price plans: Fixed Price Plans and Discount Off Regulated Tariff Plans (which are Standard Price Plans), as well as Non-Standard Price Plans.

1. Fixed Price Plans

utilities open electricity market singapore - best fixed price plan

With Fixed Price Plans, you pay a fixed rate for your electricity throughout the duration of your contract.

This is regardless of any electricity tariff revisions, meaning there may be some months you’ll be paying a higher rate for your electricity, and other months you’ll be paying a lower rate.

A Fixed Price Plan would be suitable for you if you prefer certainty over price.

2. Discount Off Regulated Tariff

utilities open electricity market singapore - best plan discount off regulated tariff

Discount Off Regulated Tariff plans are, well, exactly that – plans that offer a discount off the prevailing regulated tariff price.

Your electricity rate changes accordingly, i.e. with that discount rate applied, whenever the regulated tariff is revised.

This is a guaranteed way to save money, since your electricity rate will definitely always be lower than the regulated tariff.

3. Non-Standard Price Plans

Non-Standard Price Plans are plans where electricity rates may not be all-inclusive, or have flexible pricing structures.

For instance, some plans charge lower prices for electricity use during non-peak hours, and slightly higher prices during peak hours.

This might be the most cost-effective plan for, say, a non-working household, since they spend more time (and hence electricity) at home during non-peak hours.

Or, stick with SP Group

If you choose not to switch to any other electricity retailer, SP will continue to provide you with electricity at the regulated tariff.

2. Comparing your options

The OEM website has a useful price comparison tool that makes things much simpler:

oem open electricity market singapore price comparison

Simply input your consumer type, housing type, and average monthly consumption, and you’ll be able to check out the different price plans and your estimated monthly bill at a glance.

Tip: Note that Non-Standard Price Plans are not included in this list, so you’ll have to ask retailers about them separately.

You can also sort the options according to how much it’ll cost, or filter them according to the contract duration, whether there’s a security deposit to be paid, eco-friendliness and more; or, select the best options to compare them against each other.

oem singapore price comparison tool

Download the factsheet of each plan to get a clearer understanding of the contract. Many of these retailers offer perks such as bank rebates and free insurance, which will be detailed in the factsheet.

Tip: Price plans with a longer contract duration typically come with lower electricity rates, but bear in mind that you’ll incur termination fees if you wish to break the contract prematurely.

At this point, you’re probably wondering: What’s the catch? Surely this is too good to be true?

Electricity retailers in the OEM can offer cheaper electricity than SP group because they’re either the retail arm of power generators or independent retailers which buy electricity from the wholesale market.

As Singapore’s electricity generation capacity began to exceed consumption about 5 years ago, wholesale electricity prices dipped, allowing electricity retailers to pass these savings on to everyday consumers.

That said, demand for electricity in Singapore is likely to increase over time, which will affect the OEM’s electricity prices as well.

In other words, the lower prices today are not guaranteed in the long term (but it’s still something to take advantage of now!).

Electricity retailers in the Open Electricity Market (OEM)

Here are the list of electricity retailers participating in the OEM:

3. How to switch to an OEM electricity retailer

Signing up

Simply follow the steps to sign up with your chosen electricity retailer on their website. This will involve submitting your latest meter reading.

P.S. These electricity retailers have referral promos to save you even more money:

utilities open electricity market oem promo codes singapore

Then, leave it up to them to work with SP Group to make the switch for you.

Your electricity supply won’t be disrupted in the process.

Payment

Your new electricity retailer may choose to either bill you directly, or via SP Group.

If they bill you directly, you’ll be receiving two utility bills every month: one electricity bill from your new retailer, and another non-electricity (water and gas) bill from SP Group.

You’ll have to set up a payment procedure separately e.g. via GIRO or credit card.

If they bill you via SP group, you’ll continue to receive just one bill for both electricity and non-electricity charges, and you can continue with your current payment arrangement as per normal.

OEM vs SP Services

The freedom to pick your electricity retailer from the OEM is definitely beneficial, whether you’re setting up your utilities for your new home (Here’s a step-by-step guide!) or reworking your household expenditures.

If you found this article helpful, check out our other Home & Living guides or Latest Property News. In the meantime, enjoy your savings!

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