Nationwide Rollout of Open Electricity Market Progressing Well
08 Feb 2019
launch of the Open Electricity Market (OEM) is progressing well. More than
700,000 consumers in zones 1 and 2 can now choose from more electricity
retailers and enjoy competitive pricing
and innovative offers at the same
reliable electricity supply.
Consumers Choosing to Switch
2 Based on the switch rates in the first
month of each zone, Zone 2 has seen higher early switch rates than for Zone 1
and the soft launch in Jurong. The table below shows the overall switch rates
of household consumers as of end-Jan 2019. These switch rates are higher than
the single-digit first-year switch rates seen in other countries such as Japan, UK,
Australia and New Zealand.
Jurong soft launch
(since Apr 2018)
(since 1 Nov 2018)
(since 1 Jan 2019)
(as of end-Jan 2019)
3 On the positive
response to OEM, Mr Ngiam Shih Chun, Chief Executive of the EMA said, “The Open
Electricity Market is about giving consumers choice. While some consumers have
chosen to switch, others have decided to continue buying from SP Group. Some
are also taking a wait-and-see approach as there is no deadline to switching.
Consumers are encouraged to take time to learn more about the options and price
plans available before deciding whether to switch.”
Savings Range Between 20-30%
4 Consumers who have
switched pay an electricity rate of about 20% to 30% lower than the regulated
are offering rates ranging from 17.66 cents/kWh to 23.01 cents/kWh for their
Fixed Price Plans and discounts ranging from 14.5% to 25% for their Discount
Off the Regulated Tariff Plans.
5 The majority of households who switched signed up for 24-month
Standard Price Plans, which offer all-inclusive rates. Between the two Standard
Price Plans, the Fixed Price Plan has seen a higher take-up than the Discount
Off the Regulated Tariff Plan.
High Awareness of OEM
6 There is a high level of awareness of
the OEM, with surveys commissioned by EMA showing that:
a. 96% of residents have heard of this initiative.
b. Three out of four residents have taken some
action after hearing about the OEM. This includes seeking
information online and discussing the OEM with friends and families.
c. Half of the residents indicated that they are
open to switching to a retailer.
7 Survey findings also showed that while
consumers hope to see lower electricity bills, they also want more flexible
pricing plans that cater to their needs. Some retailers have partnered with
third-parties such as banks, telecommunications and home insurance companies to
offer value-added services and products. In addition, the majority of retailers
have gone digital and sign-ups can be done online.
& Education Efforts
8 EMA and retailers have been engaging
and educating consumers to help them better understand their options. To date,
EMA has conducted close to 10 community events, including a roadshow with retailers
in December 2018. Retailers have also held roadshows at various community
spaces, such as shopping malls and heartland areas.
 Correct as of 4
Feb 2019. Visit compare.openelectricitymarket.sg for the latest retailers’
rates for their Standard Price Plans (i.e. Fixed Price Plan and Discount Off the
Regulated Tariff Plan).
 All-inclusive rates do not have additional or hidden
 Findings are based on two surveys commissioned
by EMA: one conducted in Sept 2018 with residents outside of the soft launch in
Jurong and another conducted in Nov 2018 with residents in Zone 1
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