1. What is the Open Electricity Market about and how will it benefit consumers?
Since 2001, EMA has progressively opened up the electricity market. Currently, larger business consumers can choose to buy electricity from a retailer of their choice, instead of SP Group at the regulated tariff.
With the Open Electricity Market, the remaining 1.4 million accounts in Singapore, mainly residential consumers, will also enjoy this choice and flexibility, and stand to enjoy competitive pricing, enhanced service standards and innovative price plans offered by retailers.
2. When will the Open Electricity Market take place?
EMA has commenced the soft launch of the Open Electricity Market in Jurong from 1 April 2018. Residential and business consumers, whose postal codes start with 60, 61, 62, 63 or 64, will be able to buy electricity from a retailer of their choice. This will provide consumers with more choice and flexibility in their electricity purchases.
With the soft launch in Jurong, EMA, SP Group and the retailers can gather feedback and fine-tune processes where necessary, before extending the Open Electricity Market to the rest of Singapore in the second half of 2018.
3. What choices are available for me with Open Electricity Market?
With the Open Electricity Market, you can choose to buy electricity from:
(a) SP Group at the regulated tariff [no change from current arrangement]
(b) An electricity retailer at a price plan that best meets your needs [new]
(c) The wholesale electricity market at half-hourly wholesale electricity prices through SP Group [new]
It is not compulsory for you to switch to a retailer or buy from the wholesale electricity market. You can continue to buy electricity from SP Group at the regulated tariff as you do today. No further action is required if you do not wish to switch.
4. Is it compulsory for me to switch to an electricity retailer?
It is not compulsory for consumers to switch to a retailer. Consumers who prefer to stay with SP Group to buy electricity at the regulated tariff can continue to do so.
5. What is the regulated tariff?
The regulated tariff is the price charged by SP Group for supplying electricity to consumers. It is approved by EMA, and is based on a formula that takes into account the cost of producing and delivering electricity to consumers over the long term. It is adjusted quarterly to account mainly for changes in the price of fuel (i.e. natural gas) used to generate electricity.
6. What is SP Group’s role in the Open Electricity Market?
SP Group will continue to:
(a) Sell electricity at the regulated tariff to consumers who remain with them, or consumers who are unable to be supplied by retailers for any reason;
(b) Provide services such as meter reading, meter data management, and facilitate customer transfers between retailers;
(c) Provide billing services for consumers whose retailers engage SP Group to do so; and
(d) Operate the national power grid, to ensure the same reliable electricity supply is delivered to everyone.
7. What is EMA’s role in the Open Electricity Market?
EMA is the regulator which oversees the energy sector in Singapore. Its main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market, and develop a dynamic energy sector in Singapore.
In the Open Electricity Market, EMA will continue to promote fair competition while ensuring that consumers’ interests are protected.
8. Where does my electricity supply come from?
Electricity is produced by the power generation companies and SP Group then transmits and distributes it to consumers through the national power grid.
9. What should I consider before buying electricity from a retailer?
Before you decide to switch to a retailer, you should shop around and compare the price plans offered by different retailers and choose one that best meets your needs and preferences.
You can visit https://compare.openelectricitymarket.sg to compare the standard price plans offered by retailers.
Learn more on what to consider when making the switch:
10. Can my electricity retailer cut off my electricity supply?
No, your retailer cannot cut off your electricity supply. If your retailer wishes to stop selling electricity to you, your retailer is required to inform you at least 10 business days before terminating your contract, so that you can sign up with another retailer. If you cannot find another retailer in time, your account will be automatically transferred to SP Group which will continue to sell electricity to you at the regulated tariff. There will be no disruption to the physical supply of electricity to your premises when you change retailers.
11. Are households under the Pay-As-You-Use (PAYU) metering scheme able to switch to a new retailer?
Yes, those under the PAYU scheme will need to clear all outstanding arrears owed to SP Group before they can switch to a new retailer.
12. Can consumers from other parts of Singapore buy electricity from the retailers during the soft launch?
Business consumers nationwide, with an average monthly consumption of at least 2,000 kWh, can already buy electricity from retailers.
The soft launch is only available to the following group of consumers in Jurong (with postal codes starting with 60, 61, 62, 63 or 64):
(a) Business consumers with an average monthly consumption of less than 2,000 kWh; and
(b) Household consumers.