Published on: 22/10/2018
Are you ready for the Open Electricity Market (OEM)? As the first retail electricity marketplace in Singapore, our goal is to help fellow Singaporeans make informed choices when buying electricity, as soon as OEM is rolled out on a national scale. #ICYMI, here’s a quick recap on what we know about OEM so far.
What it is:
It is an initiative by the Energy Market Authority (EMA) to enable homeowners and business consumers to purchase electricity from a retailer with a price plan that best meets their needs.
When it is launched:
It was partially launched for residents in Jurong on 1 April 2018 and is expected to extend to the rest of Singapore progressively, starting from November 2018.
We’ve briefly talked about the 2 standard price plans retailers offer—read all about it here. Let’s now deep dive into these plans, to explore how they differ from each other, and whether they are right for you.
Standard Electricity Plans:
1. Fixed Tariff
How it works: Provides a locked-in rate per kilowatt-hour during the contract period, usually one year or more.
What this means: You won’t need to monitor SP’s quarterly fluctuating rates.
This is for you, if: You want a little more certainty and prefer a predictable electricity bill throughout the contract duration. However, electricity rates may be higher or lower than the regulated tariff, as the regulated tariff is reviewed every quarter.
2. Discount Off Tariff
How it works: Provides a fixed percentage discount off the regulated tariff, but the electricity rates may change each quarter as the tariff gets reviewed.
What this means: Whatever the SP tariff may be, you will get a fixed percentage discount off, and enjoy the best deals throughout the contract period.
This is for you, if: You are not a fan of fixed rates and do not want to end up overpaying when the tariff decreases.
Non-Standard Electricity Plan:
1. Peak & Off-peak*
How it works: Under this scheme, you are charged different rates for electricity usage depending on the time of day. For instance, $0.1880/kWh for the peak period (from 7am – 11pm); and $0.1538 for the off-peak period (from 11pm – 7am).
What this means: You achieve greater savings if your consumption is skewed towards the off-peak timing.
This is for you, if: You enjoy strategic planning and use more electricity during off-peak hours. For example, you’re a working young couple with no kids. You only use most electricity-hungry appliances such as air-conditioner, washing machine, and dryer during the off-peak period.
* Peak and off-peak plans were initially offered to Jurong residents during the soft launch. It has since been withdrawn when the OEM rolls out nationwide, due to the lack of interest from consumers. Retailers could still offer this plan, but it will be classified as a non-standard plan.
In summary, having a clear understanding of how much electricity you consume is vital in helping you decide which plan is the right fit for you. But with 13 retailers to choose from, with each offering a suite of plans, going through every single one of them can be time-consuming. This is what we are here to address, by simplifying the comparison and contracting processes into 4 easy steps. Visit ELECTRIFY.SG now or contact our representatives at [email protected] for more information.