SINGAPORE: Some 350,000 consumers are now able to switch their electricity providers for the first time, as an initiative to liberalise the local retail power market kicked off a phased launch across Singapore on Thursday (Nov 1).
These refer to households and business accounts with postal codes that begin from 58 to 78.
Other parts of the island will get their turn over the next six months as the Open Electricity Market is progressively rolled out – an initiative that authorities and industry experts hope to spark competitive pricing and innovative offers.
If you’re still in the dark about this, read on:
WHAT IT IS ABOUT
Simply put, under the Open Electricity Market, buying electricity will be similar to choosing mobile phone plans.
Instead of getting power solely from SP Group at the quarterly-reviewed regulated tariff, you will be able to pick and choose from a buffet of price plans offered by a dozen or more approved retailers.
Electricity retailers and consumers at a Open Electricity Market roadshow held at Westgate mall on Apr 21, 2018. (Photo: Energy Market Authority)
This follows a gradual process to open up the local retail electricity market since 2001. Before this, only businesses with monthly electricity consumption averaging at least 2,000 kilowatt hours (kWh), equivalent to a bill of about S$400, have the option of shopping for electricity.
Homeowners were given that option for the first time when the pilot test of the Open Electricity Market began in Jurong on Apr 1. The Energy Market Authority (EMA) said in end-September that more than 30 per cent of consumers there have chosen to buy electricity from a different provider, with savings of about 20 per cent.
But if you prefer to stick with status quo, that’s fine. This initiative is not compulsory and there is no deadline for switching.
READ: Singapore consumers can choose electricity provider from November
READ: Sizzling competition, ‘encouraging’ sign-ups as electricity market opens up in Jurong
CONSUMERS AND RETAILERS: WHO’S INVOLVED?
The roll-out covering 1.4 million consumers across Singapore will be done in four batches according to postal codes.
The next batch to get the green light will include households and business accounts with postal codes that begin 53 to 57, 79 to 80 and 82 to 83 on Jan 1.
The third zone, marked by postal codes from 34 to 52, and 81, will be included in the initiative from Mar 1 2019, while the final area, that comprises codes from 01 to 33, will get their turn on May 1.
The Open Electricity Market will be rolled out across Singapore in batches. (Graphic: Energy Market Authority)
As for retailers, there are now 13 of them vying for a slice of the market, according to updates from the EMA.
That’s more than the initially announced 12 as Sunseap and Diamond Electric re-entered the market. Both were involved in the pilot programme but decided to opt out previously citing re-assessment of business plans or updating of products.
Meanwhile, SingNet, which was in the approved list announced in September, has decided to pull out.
“We will take a partnership approach to offer electricity to our customers and are in discussions with potential partners,” said a Singtel spokesperson in response to queries from Channel NewsAsia.
“We believe the combination of our large customer base and a power generation company’s competitive pricing will allow us to deliver a better value service option to Singapore households.”
Given how other retailers – such as Red Dot Power, Sun Electric and Hyflux Energy – have also indicated their interest to re-join the initiative, the list of retailers looks set to change over time.
READ: Singapore to open up retail electricity market from November: What it means for consumers
READ: Full opening of electricity market in Singapore to fire up competition: What will retailers do?
WHAT TO LOOK OUT FOR?
With so many retailers, sieving through the plans on offer can be overwhelming.
With lessons learnt from the pilot programme in Jurong, the EMA decided to streamline the standard price plans to just two: fixed price plans and a plan with a discount off the regulated tariff.
For the former, you pay a fixed rate for electricity throughout your contract duration. This ranges from around 16.80 cents to 16.88 cents per kWh for a 24-month plan, or about 18 cents per kWh for a 12-month plan.
The quarterly-reviewed tariff is 24.13 cents per kWh, excluding GST for the three months to Dec 31.
The other involves a fixed discount off the existing regulated tariff throughout your contract duration, which seems to be about 21 per cent for now.
The peak and off-peak plan where consumers pay less for electricity during the off-peak period and vice versa is not a standard price plan, but continues to be offered by a handful of retailers such as Geneco.
Eco-conscious consumers can also pay attention to clean energy players, such as Sunseap and ES Power.
Apart from that, do take note of sign-up promotions or additional rebates from retailers’ partnerships with various banks.
DBS, for instance, launched its own marketplace in March to offer convenience to consumers who want to make the switch. Its marketplace will have seven retailers available by the end of this month.
Besides convenience, customers can look forward to savings on their bills. For example, POSB Everyday cardholders can enjoy credit card promotions with several of the energy retailers.
As a start, watch out for the notification package and information booklet that will come your way when the roll-out begins in your district. You can also compare prices at the website compare.openelectricitymarket.sg.
I’M KEEN – WHAT DO I DO NOW?
Start by contacting your preferred retailer for details on the price plan you are interested in and remember to ask for a fact sheet on the plan and a consumer advisory that will outline the key things that you should be aware of.
Before signing the contract, watch out for contractual terms such as contract duration, payment terms, security deposit, early termination charges and auto-renewal clauses, and ask if there are any terms and conditions associated with bundled products or services.
Read through the contract and ask the retailer to explain the terms and conditions if you do not understand them. Take note of any fine print and keep a copy of the contract for your reference.
After which, sign up with your preferred retailer which will work with SP Group to make the switch for you. Your contract will start as early as five business days after your retailer tells SP Group to make the switch.
Households can retain their existing meters.
The EMA has put in place safeguards for consumers so do remember that you should not be receiving any unsolicited calls, messages or visits by any retailer. If you do, inform the authorities at ema_enquiry@ema.gov.sg or call 6835-8000.
Alternatively, you can approach the Consumers Association of Singapore for assistance to resolve any dispute with your retailer.
READ: Commentary: Assessing the benefits of an Open Electricity Market for households and small businesses
WHAT HAPPENS IF I CHANGE MY MIND?
You can switch back to buying electricity from SP Group at the regulated tariff. Or you can switch to another provider.
However, check with your retailer on any early termination charges or other fees before doing so.
Regardless, this will not affect your electricity supply as SP Group will continue to operate the national power grid.
