Purchase Options for Big Businesses in the Open Electricity Market
The extension of the Open Electricity Market (OEM) throughout Singapore has given birth to new opportunities for businesses in terms of who they want to buy their electricity from.
Previously, the prerequisite for businesses to be eligible (i.e. be contestable) in choosing their own electricity provider in the OEM is that their monthly electricity consumption must be at least 2000kWh; which equates to an electricity bill of at least $400 monthly. Now, any businesses can benefit from the OEM without needing to meet the previously mentioned criteria.
What Choices Do these Eligible Businesses Have?
All eligible businesses have three choices available to them:
- SP Group: Businesses may continue to buy their electricity from SP Group at quarterly revised regulated tariffs. This is the default option if no switches are made.
- Wholesale Electricity Market (through SP Group): Electricity generating companies such as YTL PowerSeraya and Senoko Energy Supply sell their electricity in the wholesale electricity market (WEM) at wholesale prices which are updated half-hourly. Businesses may choose to buy their electricity from the WEM as well.
- Electricity Retailer:Businesses may buy electricity from a retailer of their choice. Retailers offer a variety of price plans that are packaged differently to meet the different requirements of electricity consumers.
Is There Any Automated Eligibility Check for Contestability?
For a business to find out whether they are eligible for contestability, all they need to do is to enter their account number and postal code in a widget provided by the OEM’s official website. Within two minutes, businesses can obtain accurate information about their eligibility.
What About Master-Metered Account Holders?
Consumers who are under the Master-Sub Metering Arrangement can enjoy the liberty of choosing their own electricity provider under two schemes – En-Bloc Contestability Scheme and Demand Aggregation Scheme.
En-Bloc Contestability Scheme
The first scheme is applicable when a master-metered account holder is able to obtain the consent of all the tenants in the premise, to purchase electricity on their behalf. If any tenants revoke their consent, so does the contestability of the master-metered account holder. When this occurs, tenants will go back to getting their electricity supply from SP Group at the quarterly-set tariff.
Demand Aggregation Scheme
The second scheme applies when the consent of all tenants cannot be obtained. What happens then is that the master-metered account holder is able to set out the electricity consumption load and a few more approving tenants under a sub-metered account. Other non-consent tenants can continue with their personal electricity supply arrangements (e.g. SP Group, other specific electricity retailers). If any consenting tenants under the sub-metered account revoke their consent, it will nullify their contestability status too. As per the first scheme, tenants will go back to buying their electricity from SP Group at the prevailing tariff.
The OEM has indeed opened upSingapore’s electricity market to a great extent, bringing benefits to households, small businesses and big corporations. By May 1, 2019, the OEM will be fully extended to the whole of Singapore.
Expand your options and learn more about the different offers available in Singapore’s Open Electricity Market through a trusted electricity retailer in the market.