November 2018 brought about a huge change for the power market in Singapore; the Open Electricity Market (OEM) started to extend to consumers all across Singapore.
Having the OEM means that you can now choose from thirteen companies to provide your business with electricity, creating a competitive market for prices and products. This option is not only exclusive to businesses who’s monthly consumption exceeds 2,000 kWh (approximately $400 a month), which used to be the case.
Options Available
Three options are available:
1. Your company can still choose to stay with the SP Group at the regulated tariff.
This is the default option if your company does not switch to other retailers in the market.
2. Switch to one of the thirteen retailers, at a price plan which meets your needs.
3. You can choose to purchase your electricity from the wholesale electricity market at half-hourly wholesale electricity prices, still through SP Group.
Your electricity supply will remain the same regardless, as SP Group continue to operate the national power grid supply, however, the OEM will help create competition and give consumers more control and choice over their power bills.
So how do you decide who to choose? Follow the steps below to help you find the best option for your business:
Step 1: Check Your Business’ Elegibility Status
Not every business entity is a contestable customer in the OEM. As of now, the OEM is not yet opened to businesses with physical spaces located at areas with postal codes starting with 01 – 33. This option will be available to such businesses from May 2019 onwards.
Step 2: Compare Price Plans
The best thing to do first is to have a look at what’s on offer by comparing different plans, through a retailer’s website. Refer to your business’ electricity consumption rate against the probable bill you will rake by opting for different plans.
Step 3: When You Find an Option You Like, Dig Deeper
Retailers will provide you with a fact sheet about the price plan you are interested in, or give you a quote based on your business profile. Check for details on the contract duration, the payment terms, and any security deposit you need to pay, early termination charges, and auto-renewal clauses. It’s important to be aware that you will also need to install an advanced meter (also known as a smart meter) when you switch to a retailer, so check with them on the costs of installation, though this typically costs around $40, before GST. This meter will measure your electricity consumption every half-hour.
Step 4: When You’re Happy, Sign Up
When you’ve got all the details of your plan ready, it’s time to sign up with your preferred provider. Your new electricity provider will liaise with SP Group to make the switch for you. The full process of switching might take about two weeks. Keep your contract somewhere safe so you can refer to it if necessary.
Keen on knowing more about this new initiative? Start by understanding the different aspects of the electricity market and what it means to your business through one of the largest electricity generator and provider in Singapore.
