Why you should switch to an OEM electricity retailer now

Although the Open Electricity Market (OEM) has been launched for slightly more than one year, there have been fewer than expected switches to other electricity retailers.

This is so even with the extensive broadcasting from the Energy Market Authority (EMA) and consistent effort by each electrical retailer to build their brands.

This is unexpected given that Singaporeans are known for their “kiasu” trait, where they are highly unlikely to let go of opportunities to save money.

By staying on with SP Group, they are paying at least twenty percent higher than other households who made the switch. You can visit this page to understand more about the sp electricity tariff.

Let us now move on to uncover why some households are not changing their electricity provider to an OEM retailer. From a survey initiated by DollarsAndSense recently, we have collated the results from the 60 participants below.

The proportion of people who knew about OEM

 Around six percent responded that they have completely no knowledge about OEM. From the bulk who knew about OEM, 63 percent indicated that they knew what impacts the OEM would bring about and 37 percent was unclear about the details of OEM.

Among those who knew about OEM, two-thirds obtained their knowledge from media sources and one–third by word of mouth.

What is the percentage of participants who changed their electricity retailer?

57% indicated that they have changed from SP Group to an OEM retailer. The rest are now still with SP Group.

The proportion of households who changed retailers in this survey is larger than the nationwide average of people who changed retailers. In Jurong, approximately 40% changed, which holds the highest percentage of switchers.

On the other hand, the adoption rate is slightly less than half of Jurong’s in Zone 2, as updated in February 2019.

The reason for this disparity is that the participants of this survey are more tech-savvy and took the initiative to find out more about OEM and change retailers considering their financial status.

Why are some households not changing their electricity retailer?

The group who said they had not changed their electricity provider to an OEM retailer were asked why they had not done so. These were the three reasons that appeared the most in their responses.

1.   Apprehensive about the reliability of OEM retailers

As SP Group is greatly supported by the Singapore government, it has positioned itself as a trustworthy provider with decent fiscal status. Hence, some are worried if the electricity supply will be consistent and the survivability of the OEM retailers.

However, from the educational campaigns, you can be assured that there will not be any slightest change to the power supply.

Furthermore, SP Group has constantly iterated that they are managing the whole island’s power grid, even the substations that are transmitting the power to households.

Hence, the likelihood of any breakdown in transferring of electricity is not related to which electricity retailer you are under.

Regarding the other concern, it is not totally unfounded. Analysts in the market concur that there will still be mergers and acquisitions until the market balance is found.

Over the course of this one year with OEM, two OEM retailers have already left this competitive industry. RedDot Power left in January 2019, while ES Power exited in June 2019.

However, this reason does not suffice to prevent households from changing their electricity supplier. Senior Parliamentary Secretary for Trade and Industry Tan Wu Meng promised Singaporeans in parliament that should any OEM retailer leave the market or go bankrupt, consumers will either be switched to another retailer in the market who consents to uphold the terms and conditions in the contract with the previous retailer or go back to SP Group, where they will be paying the previous rate.

All in all, should such an unfortunate event happen to any household, they do not have to worry about not getting a power supply to their homes.

Regardless, customers would have saved a sum of money from the lower rates offered by the OEM retailers. Therefore, you are encouraged to switch retailers as there will definitely be gains for households from changing.

2. Not sure how to choose from the huge variety of retailers

In the current market, there are now at least 10 OEM retailers providing at least 50 distinctive plans that are on discounts for a fixed period of time and fixed quantity. Anyone would have been overwhelmed with so much information.

The question of “How should I choose which OEM retailer to go for and which plan to take under them?” is unique to each household as the needs of each household are different.

However, given such a tough fight among all the OEM retailers, consumers will definitely benefit. This is because the retailers are having a discount war, which consumers will gain from the lower rates offered in the plans.

For those who are not changing their electricity retailer, you are also making a decision. You have opted to have SP Group as your provider and are willing to be paying higher rates for your electricity consumption without any benefits.

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3. Too troublesome to switch with more paperwork

With the Internet being so readily available nowadays, changing to an OEM retailer can be completed in a maximum of 10 minutes, with all the documentation prepared, such as your personal details and scanned NRIC of the individual registered with the utility account. It is hassle-free and simple – and it only needs to be done once.

If your family is still using the manual way to settle your utility bills every month, you can take this chance to switch to a more simple payment method, such as with credit cards or GIRO.

There are just some of us who really dislike having more than one bill mailed to you regarding the same thing.

Great news for those – because now three OEM retailers are currently working with SP Group to streamline the billing process, which means you will only get one utility bill for your household. The three retailers are Best Electricity Supply, Ohm Energy, and Tuas Power Supply.

Begin your electricity savings now

From this article, we really hope it has shown you that there will definitely be more pros than cons in changing your electricity retailer. So, feel free to switch over now to save on your utility bill.

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