Like most Singaporeans, you are probably keen to save money this summer. One way to do it is by shopping around for electricity suppliers and comparing rates. However, while switching providers can be a great way to save a few bucks, there is also the option of going off-grid entirely with an open electricity market. This blog post explores the benefits of buying your electricity from an open market.
No sneaky fees
In the open electricity market, you are only charged for the electricity you consume at the rate you select. No monthly line charges or other hidden fees, and no termination fees if you decide to stop shopping around after just one month. Pay-as-you-go pricing makes it easy to compare prices and keep on top of your costs as they fluctuate throughout the season.
Monthly savings
On average, residential customers in a deregulated market save about 8% on their electricity bill each month compared to their utility provider, with savings as high as 40% in some cases. That is because utility companies typically raise your electricity bill yearly, either at the start of the winter season or year-end, usually for no discernible reason.
Therefore, if you are a heavy user — say, during the holidays — your energy company can often charge you a higher rate than what was in effect when you made your last payment. However, while switching providers for OEM in Singapore may offer a great deal of savings, being on deregulated electricity might not suit everyone.
You have the freedom to switch providers.
The best part about an open electricity market? You have the freedom to switch providers at any time. In reality, many states require that you give a minimum of 30-90 days’ notice before canceling your service. That means you will never be locked into one provider or another — if they are not meeting your needs, you can shop around until you find an electricity supplier that fits your style. That makes keeping tabs on prices even easier as well!
You can go 100% renewable energy.
It is possible to go 100% renewable with an open electricity market, but it may not be a practical option for consumers in some areas. However, if you are not tied down to one provider, you can shop around for solar panels and other renewable energy providers — using their websites to check their pricing and availability.
It would take a bit of time at first, but over time that saved money could be used for additional savings in your home (after all, you will only have to pay for the energy you use). Just make sure that by switching providers, you are also considering a plan that will allow you to purchase more solar panels in the future.
The open electricity market is an integral part of Singapore’s Energy Package, which aims to reduce greenhouse gas emissions and make Singapore less dependent on fossil fuels. In essence, it means that the electricity system has become a lot more flexible than before. Ideally, you will want to make it easier for power plants to balance their production with demand. The market will let power plants trade unused units or surplus energy when supply exceeds demand.
