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Open Electricity Market: Your Ultimate Comparison Guide To The Cheapest Electricity Retailers In Singapore (Keppel Electric vs SP group and more!)

Open-Electricity-Market-UltimateComparison-Guide-To-The-Cheapest-Electricity-Retailers-1

The electricity tariff is currently 21.43 cents/ kWh in Singapore from October to December 2020. The tariff is up from 19.60 cents for the last quarter.

If you also add the 7% GST, you’ll have to fork 22.93 cents for each kilowatt per hour you consume.

So, if you live in a three-room HDB flat or a studio apartment in Singapore, with an average consumption of 237 kWh/ month, you can expect your bill to go up by about $4.5. That may not seem like much.

But the Open Electricity Market must have made some excellent adjustments to their prices and discounts compared to the last quarter.

So, if you want a cheaper electricity bill, read this article.

You’ll find out all about OEM and how it compares to the traditional electricity market. You’ll also get all the juicy details about the twelve Singaporean retailers that battle in low prices and discounts to get you to join them. What are you waiting for?

Go to the light side; they have Electricity. And Lending Bee will show you how their prices compare so that you can choose the most affordable offer.

 

What Is The Open Electricity Market (OEM) About?

The Open Electricity Market (OEM) is similar to the open telecommunications market. Instead of having one electricity provider, you can choose from twelve different retailers in Singapore.

The OEM launched its initial phase on April 1st, 2018. At that point, over 100,000 households in Jurong chose their favourite electricity company and their plan.

The other phases started to roll out since November 1st, 2018, when other people in Singapore had the same option.

Of course, you can stick to your old plan from the SP Group.

Before making your choice, here are the goodies on OEM:

 

Benefits Of Switching To OEM

When you compare the OEM with the typical electricity system, you can’t help but notice these benefits:

Wider Array Of Options

SP Group, the unique energy provider, establishes fixed tariffs every quarter.

By contrast, the other retailers in Singapore feature two different electricity plans. Therefore, you can decide:

  • How you want to buy your Electricity
  • Who you want to buy it from

If you choose the right plan according to your electricity consumption, you can save more money!

Better Prices, More Competitive Prices

Currently, the open electricity market in Singapore is a battleground for twelve companies. Their competition for more customers is an excellent incentive for constant improvement.

That means you’ll always get better services at better prices! Some of these companies are even offering cashback, discounts, and even free Electricity. How neat is that?

And, as they fight for a place in your mind and on the market, you can be sure they’ll come up with more perks and better offers.

Saving The Environment

As the OEM brought so many specific electricity plans, Singaporeans have a better understanding of their electricity consumption habits as well as their needs.

As you gain more awareness of these patterns, you can strive to use energy more conscientiously. Turn down the appliances you don’t need and avoid waste. More considerate electricity use doesn’t just save you money in the long-run; it helps protect the environment as well.

 

The Electricity Market Then Vs Now

Open-Electricity-Market-(OEM)-Past-Vs-Present-Lending-Bee-Cost-Guide

If you remember the world before 2018 when the Open Electricity Market project started, then you remember the SP Group.

You may also remember the sense of tense anticipation and confusion when November 2018 rolled by, and you could choose one of the twelve electricity retailers in Singapore.

Most of us asked questions like: Is it mandatory to switch? Are these companies reliable? And what’s the catch?

But the electricity market was always an open market in the sense that it had many players involved.

  • Power generation companies bid to ensure more contracts to generate wholesale Electricity.
  • These companies own and operate power plants that produce energy.
  • Retailers buy Electricity from these companies in bulk. That’s the case with SP Group as well as the others in Singapore.
  • This energy is distributed on the national power grid before it gets to your home.

So, before OEM, the SP Group was in charge of the infrastructure, your bills, and operating the power grid.

Now, SP Group is still in charge of the national power grid, which means you’ll get reliable power. No sudden blackouts! 

Which leaves room for one crucial question: Why are all these companies friendly to you?

It’s not from the goodness of their hearts. The Energy Market Authority (EMA) regulates these companies and protects the people in Singapore from inflated prices. Therefore, EMA sets the base tariff quarterly, based on the fuel cost, plus maintenance costs for the infrastructure and other support services.

Here’s why that’s good: 95% of the Electricity in Singapore is made with imported natural gas. And we all know that the global oil market has price fluctuations galore.

Well, EMA insulates you from those price fluctuations. And EMA also came up with OEM so that Singapore’s electricity market to become more liberal and, therefore, more advantageous for you. However, no one is making you transition to the OEM if your loyalties are with the SP Group.

But if you want to know more about the twelve independent retailers, read below:

 

The 12 Electricity Retailers In Singapore

According to research, here’s how much the average household in Singapore spends on Electricity per month:

Property TypeAverage Electricity Consumption Per Month (kWh)
(as of March 2020)
Average Cost of Electricity Per Month (incl. GST)
HDB 1-Room116$24.33
HDB 2-Room155$32.50
HDB 3-Room237$49.70
HDB 4-Room324$67.94
HDB 5-Room378$79.27
HDB Executive462$96.88
Apartment501$105.06
Terrace794$166.50
Semi-Detached1049$218.98
Bungalow2116$443.73

So, if you want to save some money, you have to choose the right electricity plan.

But first, you have to understand the terminology:

Types Of OEM Price Plans

Before we start comparing the various standard plans offered by electricity retailers, let’s see how they work.

Types-Of-OEM-Plans-&-Their-Prices-How-Do-You-Choose-Lending-Bee-Cost-Guide-Singapor

Type 1

Discount-off regulated tariff plans are based on the regulated tariff that EMA establishes. Then, you get a discount.

Therefore, if you choose this type of plan, you’ll always save more money than you would with the SP Group.

Now you probably think that SP overcharged you for years. But that’s not exactly true.

You see, this regulated tariff includes non-fuel costs, such as producing and delivering you the Electricity. As such, the SP Group had to include some fees for building, managing, and operating the power plants, the staff, plus power grid maintenance.

But then, the OEM lowered these costs because currently there’s an excess in electricity supply compared to the demand. And, naturally, the electricity costs you’re paying stay fixed only for the duration of your contract. Each electricity retailer in Singapore can come up with better prices and more discounts.

Type 2

Fixed-price plans resemble the SP Group’s traditional electricity plan because you’ll pay a fixed fee for the power you consume.

The difference between fixed price plans and the SP Group’s tariff is that these plans aren’t subject to quarterly fluctuations.

So, even if the initial price is lower than that of the SP Group, your fixed price plan can become higher over time.

Type 3

Non-standard plans are ideal for people who have obvious electricity consumption habits during the day, especially those who keep the lights on during the night.

So, you can choose the price for electricity according to the time of day when you’re mostly using it. You’ll save money in the process if you’re a night owl because electricity prices are lower for off-peak hours.

Now that you know you have these options, let’s compare the OEM prices:

 

Fixed-Rate Plans

It isn’t easy to choose from twelve retailers, especially if you want the most affordable plan.

Fear not, we’re here to help with a neat table that contrasts all their plans and prices below.

1. The first observation is that most fixed price plans are cheaper than the equivalent SP Group’s energy bill that’s set based on the quarterly electricity tariff.

2. These companies are very competitive, with just a few cents between their prices. If you don’t want to sign with newcomers like iSwitch or Best Electricity, Tuas Supply has a value-for-money offer too.

RetailerFixed-Rate Plan   
6 Months1-Year Contract2-Year Contract3-Year Contract
iSwitch$0.1679/kWh

No Contract: $0.1787/kWh
$0.1719/kWh$0.1764/kWh$0.1835/kWh
Tuas Power$0.1684/kWh$0.1699/kWh$0.1763/kWh$0.1798/kWh
Best Electricity$0.1680/kWh

No Contract: $10.70 per month; $0.1736/kWh
$0.1695/kWh$0.189/kWh-
Union Power-$0.1698/kWh$0.1760/kWh-
Sunseap$0.1700/kWh$0.1724/kWh$0.1760/kWh-
PacificLightN/A

No Contract: $0.1688/kWh
+$0.32/day daily charge
$0.1719/kWh (Online Exclusive)

$0.1865/kWh
$0.1764/kWh$0.1835/kWh
Senoko Energy-$0.17/kWh$0.1763/kWh-
Ohm Energy$0.1799/kWh

No Contract: $10.70 per month; $0.1734/kWh
$0.1749/kWh$0.1947/kWh-
Geneco$0.1679/kWh$0.1745/kWh$0.1766/kWh$0.1889/kWh
Keppel Electric-$0.1745/kWh$0.1769/kWh-
Sembcorp PowerNo Contract: $0.1745/kWh$0.1710/kWh$0.1763/kWh-
Diamond ElectricDoes not provide fixed price plan---

All these prices include GST.

  • If you want a no-contract plan, choose:
    • Pacific Light for $0.1688/kWh +$0.32/day daily charge.
    • Best Electricity for $10.70 per month; $0.1736/kWh
    • Ohm Energy for $10.70 per month; $0.1734/kWh
    • ISwitch for $0.1787/kWh.
    • Sembcorp Power for $0.1745/kWh
  • The cheapest 6-month plan is offered by iSwitch and Geneco at $0.1679/kWh.
  • Best Electricity offers the second cheapest 6-month plan at $0.1689/kWh.
  • Best Electricity offers the cheapest 1-year plan at $0.1695/kWh.
  • Union Power and Sunseap offer the cheapest 2-year plan at $0.1760/kWh.
  • The cheapest 3-year plan is offered by iSwitch at $0.1776/kWh.

 

Regulated Tariff Plans

If you like gambling, take a swing at a regulated tariff plan. The Discount-Off Regulated Tariff plans offered by OEM providers are based on the EMA tariff. You’ll get a significant discount now, but the price can increase in the future. Or it may not.

Are you feeling lucky? Here are the discounts below:

CompanyDiscount Off Tariff Plan  
6-Months1-Year Contract2-Year Contract
PacificLight-24.5% off23% off
Union Power-25.5% off23.6% off
Sunseap23% off23% off23.6% off
Sembcorp Power-22.5% off23.6% off
Ohm Energy20% off20% off-
Diamond Electric-20% off-
iSwitch-18% off-
Best Electricity-21% off22% off
Tuas Power18% off24.1% off22% off PowerDO 24

23.6% off PowerDO 24 Care
Senoko Energy-24% off23% off
Geneco--23% off
Keppel Electric--23% off

Younger brands steal the limelight of discounted tariff plans as follows:

  • The accolade for the cheapest 6-month contract goes to Sunseap for its 23% discount.
  • The cheapest 1-year contract is 25.5% at Union Power.
  • The best discounted 2-year contract is 23.6% at Union Power, Sunseap, Sembcorp Power, and Tuas Power.

 

Non-standard Plans

Most electrical companies define their off-peak period as anytime between 11 pm, and 7 am.

So, if you like to stay up watching TV or working during the night, non-standard plans will help you save essential sums on energy.

However, just a few retailers provide customers with these plans because you’d need to install an additional meter to keep track of your electricity consumption patterns. This meter registers your energy consumption every 30 minutes and costs around $40.

CompanyPeak PlansOff-Peak Plans
PacificLight10% off tariff
(7am to 11pm)
35% off tariff
(11 pm to 7 am)
Keppel Electric$0.2087/kWh
(7am to 11pm)
$0.1669/kWh
(11 pm to 7 am)
Sembcorp Power--
Geneco--
Tuas Power--
iSwitch--
Best Electricity--
Senoko Energy--
Ohm Energy--
Sunseap--
Union Power--
Diamond Electric--

All these prices above include GST.

  • If you prefer a discount tariff for peak and non-peak hours, choose Pacific Light.
  • If you prefer rates instead of discounts, choose Keppel Electric.

 

In Conclusion

Now that you’re here, you know which plan is the most convenient for your needs. You can compare the prices and discounts for all these companies to select the most appropriate one.

However, keep in mind that these prices are always changing. Companies want to stay competitive, so they’re upping their discounts. Conversely, some companies give up their less-than-lucrative plans, just like Sembcorp gave up its Peak/Off-Peak plans.

If you’re interested in more discounts, you should also visit the promotion sections on most of these websites. You’ll discover attractive cashback options, rebates, rewards, and more. Every dollar and cent counts especially during the COVID-19 pandemic where there is great uncertainty. It is wise to do your due diligence before jumping onto any OEM plan.