“When they purchase electricity from a retailer, other than standard plans such as fixed price or discount-off-the-regulated-tariff plans, they can also select bespoke plans such as 100% renewable electricity plans, or time-of-use plans that offer lower rates during off-peak periods,” Hua Jie Min, Analyst at the Market Development and Surveillance Department revealed.

This availability of choice was a key goal of the Open Electricity Market (OEM) when it was first introduced. However, with more choices comes the need for stronger safeguards to ensure consumers are protected every step of the way.

Working quietly behind the scenes is Jie Min and her team who help ensure the OEM is competitive, fair and resilient – even during uncertain times.

Their responsibilities span a wide range of critical areas, from establishing regulatory frameworks for retailers, licensing new entrants and monitoring the conduct of the industry. More importantly, they ensure consumer interests are protected.

“For example, retailers that serve households and small businesses must meet additional licensing requirements,” Jie Min explained. “At the heart of it, we want consumers to contract with peace of mind while enjoying greater choice, flexibility, and awareness of their options available.”

Consumer protection goes beyond setting rules and regulations for the retailers. Jie Min and team also work to make the market easier for consumers to understand and navigate.

One key tool is the price comparison website, allowing users to easily compare standard price plans across different retailers. To cut through lengthy fine print, EMA also introduced standardised fact sheets for standard price plans – a requirement for all retailers retailing to households.

“These fact sheets highlight key information that consumers should be aware of, like whether the contract will be auto-renewed, if there are early termination charges or the promotions that are bundled in the plan,” Jie Min said.

Feedback from consumers also plays a key role in how the OEM evolves. In response to growing public concerns, the team is now exploring new safeguards around auto-renewals, on top of existing consumer protections that ensure auto-renewed rates are less than the prevailing Regulated Tariff, and a 30-day grace period for consumers to terminate their contracts after renewal without incurring early termination charges.

The goal of each safeguard is the same: To give consumers clarity, confidence, and choice.

The global energy crisis in 2021 was a stress test for the OEM. The onset of the global energy crunch resulting in high and volatile global oil and gas prices hit the wholesale electricity market hard, resulting in six independent retailers having exited the market. Consumers who had existing contracts with these retailers were swiftly transferred to either SP Group or another electricity retailer.

“This episode helped EMA realise the need for stronger safeguards against the volatility of the wholesale electricity market for consumers,” Jie Min said.

Since then, EMA has introduced measures to make the market more resilient. Retailers must hedge at least 80% of the electricity on a 24-months forward basis. This means that retailers must insure their retail contract load against wholesale market price volatility. This shields retailers from sudden price spikes and ensures that retailers can continue to honour the contracts with their customers during price shocks.

Retailers are also required to have a minimum tangible net worth of at least $1 million both at time of application and renewal of their licences. This is to ensure they are suitably capitalised to begin retailing electricity.

In addition, for premature termination of contracts on retailers’ part, retailers must compensate consumers the same amount that the consumers would have to pay for any early termination on their part. This is in addition to rules that retailers are prohibited from unilaterally terminating contracts with consumers.

As Singapore evolves towards our net-zero ambitions, the retail electricity market – and the OEM – must also evolve in tandem.

Jie Min is optimistic about what lies ahead. She sees opportunities for retailers to introduce more innovative offerings. “For example, Time-of-Use plans can encourage consumers to shift their electricity usage to off-peak hours. These plans not only help consumers save on bills but also support a more balanced and efficient power grid,” she added.

There is also growing interest in 100% green electricity plans, supported by Renewable Energy Certificates. These plans allow consumers to directly contribute to Singapore’s low-carbon transition through their choice of plans.

Jie Min explained that with these new offerings, electricity plans will longer just be about price. Instead, they will give consumers the power to use electricity in ways that fit their budget, lifestyle, and sustainability goals.

“The intention is for individual retailers to compete for market share and strive to differentiate themselves. We are hopeful to see more plans that put consumers at the centre. We will also keep doing our best to ensure consumers are well-protected while enabling them to make informed choices,” she said.