Electricity retailers versus SP services how much money can you actually save? There’s been a lot of buzz surrounding the open electricity market that was launched in November 2018.
What is the open electricity market
Before the open electricity market was launched Singaporeans could only buy electricity from SP groups so what exactly is this um and how will it change the way you buy electricity?
Basically the OEM is a marketplace of electricity retailers that is set up by the energy market authority or the EMA. Why was it set up it was set up to let you have more choices when buying electricity and in turn benefit from competitive pricing who can you buy from now you can buy electricity from 13 retailers in Singapore.
These retailers include the list below.
Can you really save?
At this point you’re probably thinking blah blah blah just tell me whether I should switch from SP services and if I did make the switch how much do I actually save well the short answer is that you will probably save money if you switch to an electricity retailer but first you must understand this thing called the regulator tariff it’s a rate that’s set up by SP services and regulated by the EMA it changes every quarter if you stay with SP group you just pay the regulator tariff of your electricity electricity retailers on the other hand offer two types of standard price plants fixed price plans or plans that offer a fixed discount off the regulator terror.
When you get a fixed price plan you pay a fixed rate for contract period of 12 to 24 months the current fixed prices are around 30 percent cheaper than a regulated tariffs for fixed discounts off the regulator tariffs you pay a fixed discount of anywhere between 23 percent and 25 percent of the regulated terror.
Example of savings
For example the current tariff is now at twenty five point five two cents per kilowatt-hour if you choose a fixed discount of the regulated tariff plan that offers 25% off then you end up paying 19 point fourteen cents per kilowatt-hour Wow what this is all mean uh I know it’s a little confusing here’s a simple illustration that will hopefully help to clarify.
Mr Lim lives in a foreign planet and currently consumes 360 kilowatt hours of electricity per month if he uses SP services then he would be paying the following prices how to choose. Basically if you think the electricity prices will drop then you might want to go for a fixed discount off the tariff prices if you think that electricity will become more expensive and all prices are increasing in 2019. Then get the fixed rate plans so you can lock down a good rate for the next one or two years.
Excited to get cheaper electricity and wondering when you can switch this depends on where you live do wrong residents were the first to be able to make the change and by May.
Buying Electricity from Open Market
This 2019 everyone can change from SP to another electricity retailer with all that’s been said ultimately the electricity grid is supplied by SP services. So there’s no better or worse electricity the main differentiating factors right now are probably just price promos and customer service what we have noticed is that the bigger brand names tend to have more incentives as cash rebates and partner discounts.
Happy shopping for better power deals.