Open Electricity Market Price Comparison Cheapest Plans in Singapore
The electricity tariff in Singapore is on the rise. The second trimester of 2022 saw an increase to 27.94 cents for each kilowatt-hour. That’s a 9.82% increase from last trimester’s 25.44 cents/kWh.
It’s also the fifth trimester when electricity in Singapore becomes more expensive.
Open electricity market providers are likely to leverage this raise and increase their tariffs. However, some OEM retailers are more convenient than others.
We’ve analysed the differences between them, so you don’t have to. That way, you can always switch to a more convenient plan and save money on your electricity bill.
Keep reading below.
What Is the Most Affordable Open Electricity Market Provider in Singapore?
Here’s a tl;dr summary of the cheapest alternatives in Singapore:
|Contract Duration||Most Affordable Providers (GST included)|
|No Contract||Singapore Power (SP):|
|1 Year||Keppel Electric|
|2 Years||Senoko Energy|
Discount-Off Regulated Plans
|Contract Duration||Most Affordable Providers (GST included)|
|1 Year||Senoko Energy:|
What Is the Open Electricity Market (OEM)?
The Open Electricity Market (OEM) is an initiative launched by the Electricity Market Authority (EMA) in 2017. This approach aimed to liberalise the electricity market, producing significant advantages for providers and consumers alike.
Thus, retailers’ fight for supremacy in Singapore’s open electricity market is supposed to foster lower prices and more innovation. That’s why each Singaporean can choose a different provider since May of 2019:
- Geneco (by Seraya Energy Pte Ltd)
- Keppel Electric Pte Ltd
- PacificLight Energy Pte Ltd
- Sembcorp Power Pte Ltd
- Senoko Energy Supply Pte Ltd
- Sunseap Energy Pte Ltd
- Tuas Power Supply Pte Ltd
- Union Power Pte Ltd
Open Electricity Market Plans
Each retailer above has a different marketing vision, which aligns with specific price plans:
- The fixed price plan entails paying a fixed rate during your contract period. This rate applies to all the power you’re using, regardless of the total kWh consumed. The new retailers on the open electricity market can offer you lower prices than the Singapore Power Group because there’s a lot of competition.
- The discount-off regulated tariff plan, or DORT, depends on EMA’s regulated tariff with a discount. As a result, DORT-plan customers pay lower rates than those charged by the SP Group.
For example, Senoko Energy’s 6% discount from the regulated tariff means you’ll be paying $0.28106/kWh instead of SP’s $0.2990/kWh.
Compared to 2019’s 20% discounts when the open electricity market was just emerging, that doesn’t seem much. There are other differences compared to that period too.
Remember the on-peak/ off-peak tariffs?
These packages entailed lower prices per kWh during off-peak hours and higher costs during on-peak periods. As such, users employed two main strategies to lower their electricity bills: either limiting their on-peak period electricity consumption or choosing a plan that suited their schedules better.
Why don’t open electricity market retailers offer these options anymore?
The most important reason is this approach isn’t popular anymore. Users prefer the other pricing mechanisms that help them lower their bills more effectively.
With that in mind, let’s get to your most burning question:
Cheapest Fixed Price Plan on the Open Electricity Market
|Company||Cheapest Fixed Rate Plan|
|No Contract/Short Contract||6 Months||1 Year Contract||2 Years Contract|
|Singapore Power (SP)||$0.2990/kWh||—|
|PacificLight||$0.2968/kWh (+ $0.50 daily fee)||—||$0.2711/kWh||$0.2681/kWh|
18 Months: $0.2979/kWh
As you can see, the cheapest fixed-price plan is Senoko Energy’s two-year plan because the kWh is priced at $0.268. Considering that the energy consumption for a four-room apartment in Singapore averages 350 kWh/ month, the expected bill is $93.8.
Keppel Electric’s one year plan is a close second place, with its $0.2688/ kWh. That makes a 4-room flat’s electricity bill $94.08.
Singapore Power’s no contract plan is on par with Geneco’s six-month plan at $0.2990/ kWh. The advantage of these shorter or no-contract plans is increased flexibility.
For example, you may live abroad and have one summer residence in Singapore. In this case, choosing a shorter plan is better. Alternatively, you may want to test different open market electricity providers before making up your mind.
Cheapest DORT Plan on the Open Electricity Market
DORT plans are cheaper if the electricity tariff stipulated by EMA drops during a specific quarter. Otherwise, it’s better to be on a fixed plan.
|Company||Cheapest DORT Plan|
|No Contract||6 Months||1 Year Contract||2 Years Contract|
|Singapore Power (SP)||$0.2990/kWh||—|
|Senoko Energy||—||6% off||—|
SP Wholesale Electricity Plan
Singapore Power Group boasts a non-standard plan too. Take this option if you want to purchase electricity without going through a third party.
Yes, SP Group allows direct purchases from the wholesale market without any lock-in period or contract.
The advantage here is that you can return to your SP plan anytime you want or choose one of the open electricity market providers discussed above.
And there won’t be any penalties either.
Here’s the caveat:
Wholesale electricity prices are a gamble. According to Singapore’s demand and supply conditions, the cost oscillates every thirty minutes. As a result, this volatility will reflect on your final bill.
That means you’ll bear the consequences if the supply-demand ratio changes dramatically.
For example, February 2019 saw two faraway price extremes, the lowest at $0.14 kWh and the highest at $1.56 kWh. These fluctuations and instability make the wholesale electricity market an unattractive option for most Singaporeans.
When to Start Applying
Singaporeans can choose an open electricity market provider whenever they wish – you can too. But remember that haste makes waste.
It’s essential to research different OEM offers and see which fits your lifestyle better. You should also analyse various promotions offered by these retailers through the lens of your needs. Don’t just look at the promotions; look at the strings to which they’re attached.
Hidden fees are an essential variable to consider. Apart from the kWh price, you’ll also have to pay:
- Admin charges
- AMI meter installation
- Carbon taxes
- Early termination fees
- Late payments
- Paper bills
- Security deposit
- U-Save GST Voucher
The transmission loss factor can also affect your overall bill. That brings us to the following point:
What Is the Transmission Loss Factor?
The Open Electricity Market was tricky to assess at the beginning of its launch because of this transmission loss factor. Here’s what that means:
When electricity is being delivered to different households, some of it gets lost along the way.
The critical question is who’s paying for that loss. OEM retailers in Singapore had different approaches to this issue. Some providers adjusted their prices to include the transmission loss factors, while other retailers added the loss to their consumers’ bills without any notice.
That problem was solved in November of 2018.
Most OEM retailers in Singapore realised that people hate doing the extra math and calculating their electricity bills themselves. So, to remain competitive, these companies standardised these calculations.
Of course, things can always change back.
Therefore, the best advice is to read the fine print on your contract and ensure you’re spared the drag of extra billing calculations. Also, check out the Transmission Loss Factors from the OEM website:
|Load||Transmission Loss Factors (from 1 April 2022)|
|230kV / 400kV||1.0|
Here’s how to make sense of the table. Singapore delivers its power at 230 V, which means the current TLF is 1.036482. Your provider can bill you in two ways:
- According to the meter
- By adjusting the loss
In the first case scenario, all you have to do is read your meter and pay the price of what you consumed. For instance, using 300 kWh at a $0.2990/ kWh price means your bill is $89.7.
However, if your provider practises loss-adjusted billing, you must multiply that result by 1.036482. In his case, your final bill will be $92.97 – $3.27 more.
Open Electricity Market Benefits
Open Electricity Market, launched by the Energy Market Authority (EMA), created a more competitive and vibrant electricity market removing the monopoly of SP Group.
Under this new competitive landscape, consumers can choose from a variety of electricity retailers for their energy needs.
There are four benefits of the Open Electricity Market for consumers:
1) Competition among retailers leads to better deals and discounts. Consumers can choose to get their energy needs from a retailer that offers products and services according to their preferences.
2) More choices of electricity plans and services. With increased competition in the market, retailers are incentivised to offer better customer service and support
3) Greater transparency of retail prices. The Open Electricity Market has created greater transparency in the electricity market, providing consumers with more information about their choices.
4) Increased flexibility and control over one’s energy usage. With the Open Electricity Market, consumers can make informed decisions on their energy usage and take greater control over their bills.
As the Open Electricity Market continues to roll out across Singapore, more and more consumers are beginning to see the benefits of this new competitive landscape.
However, even these benefits may not be enough if you face financial difficulties preventing you from paying your bills. In these times of trouble, you need access to quick cash.
Getting a loan is easier said than done.
Stringent borrowing conditions, delayed approvals, and a low credit rating may hamper your options. Horison Credit is the partner you’re looking for. We’re attentive to our customers’ needs and promise fast emergency cash solutions at low rates.