Dear readers, the exit of iSwitch and Ohm Energy from the Open Electricity Market (OEM) as well as potential exit of another two OEM players from the OEM scene has surprised both consumers and the industry.
I believe beside being surprised, consumers, especially those who have signed up with the affected OEM players exiting the OEM industry will be naturally interested to find out whether they will continue to pay for low prices for their electricity plans, even if the electricity supplies to their household remain undisrupted.
Arising from the aforementioned episode of OEM players exit, I was also interested to find out what the current electricity price plans are. I signed up for a “Discount Off Regulated Tariff” plan as opposed to fixed price plan because back then I was of the view that I would be happy as long as I pay for my electricity at a discount off the regulated tariff. I was then also of the view that regulated tariff may at some point drop below the price of fixed price plan given the up and down of electricity prices. My electricity plan is at a 23% discount off the regulated tariff.
I went to the Open Electricity Website and find out more about the “Discount Off Regulated Tariff” packages.
I was surprised at what I read!
First, the number of OEM retailers that offer “Discount Off Regulated Tariff” plans is now sharply reduced to only four retailers: Senoko Energy Supply, PacificLight Energy, Tuas Power Supply and Union Power.
Secondly, the magnitude of discount has become significantly lesser:
a) Senoko Energy Supply: 5%, 9% discount
b) PacificLight Energy: 3% discount
c) Tuas Power Supply: 3% discount
d) Union Power: 1% discount
Of the above, Senoko Energy offers the best discount at 9% but this is still nowhere near the 23% which I have subscribed to. The energy retailer which I subscribed to is not in the list of four retailers above.
I am happy that I have signed up earlier to enjoy a 23% discount off regulated tariff plan given the above developments. I also think it is possible that I would have to pay for higher electricity prices once my contract ends.
As with Singapore Savings Bonds, those who subscribe on early for the OEM plans will get better returns.
And in this case, I have further ensured that I sign up with the larger players on the OEM market to minimise risks since larger players have more resources to continue operating and offering competitive packages.
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