How the Open Electricity Market can help SMEs cut costs
The Open Electricity Market (OEM) will generate more competition in Singapore’s retail electricity market with better prices and promotions for business and private electricity consumers alike.
What is the Open Electricity Market (OEM) anyway? How can it reduce my operating costs?
The OEM is an initiative led by the Energy Market Authority. Households and businesses could previously only buy electricity from SP Group, but the OEM now gives you the option of buying electricity from a retailer of your choice, on a price plan that best meets your needs.
What price plans are there and which works best for me?
- Fixed price plan: you pay a fixed rate throughout the contract period. Choose this plan if you prefer not having to worry about fluctuations in the prevailing tariff.
- Peak and Off-Peak plan: you pay different rates for electricity use depending on the time of day. If your business uses electricity mainly during off-peak hours, such plans could provide significant cost savings.
- Discount Off Regular Tariff plan: you pay a discounted rate calculated based on the prevailing electricity tariff. Discounts typically vary with the contract duration – the longer the lock-in period, the better the discount.
When will OEM launch in my area?
OEM will be introduced across Singapore progressively from 1 November 2018 in four stages, as detailed in the table below:
|Zone||Postal codes beginning with the numbers||Launch date*|
|1||58 - 78||1 November 2018|
|2||53 - 57, 79 - 80, 82 – 83||1 January 2019|
|3||34-52, 81||1 March 2019|
|4||01-33||1 May 2019|
How do I pick the right plan to lower my costs?
First, make a record of your average electricity consumption in kWh over several months. Then calculate your business’s expected monthly electricity bill based on the prevailing tariff. Compare your expected costs with the actual plans available by entering your average monthly electricity consumption into this comparison tool.
A SME which uses approximately 1,700 kWh of electricity every month, for example, can expect to pay between $340 and $375 every month in electricity bills on a Discount Off Regulated Tariff plan, as compared to $439 on the regulated tariff.
What are some other ways SME owners like me can save on costs?
DBS offers an array of options to help SME owners save. Enjoy attractive sign-on deals when you open a DBS business account, secure preferential rates on your working capital loans, or sign up for a DBS Business Multi-Currency Account if you frequently transact in foreign currencies. Not sure where to begin? Let us know. We’re happy to help.
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