SeedlyTV EP08 - Seedly

SeedlyTV EP08

We have gathered some of the players in the Open Electricity Market. Don't miss out on this opportunity to ask them your questions now !

ASK A QUESTION

In 2017, the Open Electricity Market (OEM) initiative was announced to encourage competition in the power industry. From May 2019, all households are officially eligible to choose and switch to their preferred retailer.

Based on statistics, 40% of Singaporeans have switched their electricity retailer while the other 60% hasn't switched. In this episode, we have gathered a few of the electricity retailers in the OEM to address your burning questions!

Here's what will be covered:

  • What is the OEM all about?
  • Is it compulsory to switch to another retailer?
  • How do I know which retailer to switch to? What sets them apart?
  • LIVE Q&A

Speakers:

- Yeap Ming Feng (Head of Growth, Seedly Moderator)

- Senthil Kumar, Chief Operations Officer (iSwitch)

- Stephen Chng, Chief Retail Officer (Diamond Electric)

- Heather Ang, AVP, Marketing (Senoko Energy)

- Song Jian En, Senior Manager - Pricing & Portfolio (Sembcorp Power)

- Yvonne Neo, Head, Residential & Corporate Services (Tuas Power)

NOTE: SeedlyTV is a series which will be covering topics via LIVE video and QnA on the Seedly platform. We will be inviting speakers to cover relevant topics in personal finance: Insurance, Debt, Saving, Spending and Investing. 

-This is a Seedly organised event-

Missed EP07? Watch it here: SeedlyTV EP07: P2P Lending Showdown

Remember to ask your questions in the QnA section below!

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Ohm Energy

iSwitch

Geneco

Keppel Electric

SeedlyTV EP08

Money FM 89.3 Show

Yixiong Chang
Yixiong Chang
Top Contributor

Top Contributor (Dec)

Level 5. Genius
Updated on 06 Aug 2019
Imagine they are our different telco. M1, Starhub, Singtel etc. Or our Banks (DBS, UOB, OCBC, Standchart etc) offering mortgage loan. There are offering the same thing, but just different pricing terms. In short, the plans can be summarised into 2 main type. One is fixed price (imagine fixed interest rate loan), and another is variable (imagine floating rate interest based on sibor). The variable will be usually a discount( x %) off the regulated tarrif (sibor) rate that the rest of singaporeans are paying now. For actual plan comparision, see the official site. https://compare.openelectricitymarket.sg/#/home

SeedlyTV EP08

Electricity Market

General

Kenneth Lou
Kenneth Lou, Co-founder at Seedly

()

Level 8. Wizard
Answered 2w ago
The Energy Market Authority said earlier this year that consumers who have switched out of buying electricity from SP Power to one of the 12 electricity retailers pay a rate that is about 20 to 30 percent lower than the regulated tariff. How is it that these retailers can offer rates that are lower than SP power? - Singapore has a small electricity market with just a few power generating companies (Gencos) - There are 4 parties: EMA (Regulator), Singapore Power (Infrastructure), Generation companies (Genco) and NEW Electricity Retailers (may or may not be a Genco) - Previously it was only EMA and SP running the whole show - To create an efficient and competitive market, SP signed an agreement with 6 Gencos which are called Vesting contracts - It is for SP to buy electricity from the 6 Gencos at a fixed price called the vesting contract prices - And this is worked out quarterly via a formula approved by the Energy Market Authority (EMA) - SP will plan to relinquish all it’s role to privatise entirely for more efficient market to work and become only the infrastructure provider - However there will always be a need for SP to be around to support the people and run the infrastructure Answering this as part of the Money FM 89.3 show we just did :)

SeedlyTV EP08

General

Electricity Market

Alber
Alber

()

Level 2. Rookie
Answered on 12 Jul 2019
From the proposed articles on EMA website. The Open Market is rolled out in stages and only recently to residential households. The number of retailers as it seems is to provide: 1. Competition between retailer will drive better prices. 2. More innovation may lead to new products and price plans 3. Traditionally, in many other markets there will be some form of consolidation over time but for now, seems like consumer gets to benefit from such competition.

Electricity Market

SeedlyTV EP08

Kenneth Fong
Kenneth Fong
Top Contributor

Top Contributor (May)

Level 5. Genius
Updated on 07 Jun 2019
This is a very common question asked by those who're looking at the open electricity market. Also, I'm presuming you're asking about the Advanced Metering Infrastructure (AMI) meter. Lucky for you, I have an unhealthy obsession with understanding everything there is about the electricity industry. ! The short answer is: No, because everyone will get an AMI meter eventually. About the AMI Meter According to Energy Market Authority (EMA) Singapore, advanced meters or AMI meters allow electricity consumption to be measured digitally at half-hourly intervals. If you’re wondering, “Wait a minute. Then how is SP Group currently taking electricity readings?” Well… It’s done manually. cue gasps_ An SP Group rep comes down personally, once every 2 months to take a reading via your analogue meter. The first month is an estimation of your consumption, while the second month will be accurate to the reading taken. The new AMI meter will eliminate the need for physical readings to be taken because everything will be done digitally. And just in case you’re wondering what an AMI meter looks like: ! Also, here are some commonly asked questions: 1) Do I Need To Install An AMI Meter If I’m Switching To An Electricity Retailer? No. It’s completely optional. In fact, I contacted SP Group and learnt that in the not too far-off future there will be a nationwide upgrade of analogue meters to AMI meters . 2) How Much Does It Cost To Have An AMI Meter Installed? And How Do I Go About Doing It? If you wish to have an AMI meter installed, you can apply for it through your chosen electricity retailer. In turn, they will work with SP Group to install the AMI meter for you. It will cost you $42.80 (after GST) regardless of which retailer you approach for the AMI meter installation. 3) Can I Have An AMI Meter Installed If I’m Still On SP Group? No. You can only choose to have an AMI meter installed IF you choose to purchase electricity from the open electricity market. If you’re sticking to SP Group, then you’ll just have to wait for the eventual upgrade – which is free by the way – to get an AMI meter. 4) How Do I Know If I Have An AMI Meter Currently Installed On My Premises? Erm... Just go outside and look? jk jk... If you’re still unsure after looking at your electricity meter, all you have to do is contact SP Group at [email protected](mailto:[email protected]) or 1800-233-8000 to find out. And hey, if you're interested in reading more about the stuff which the electricity retailers DON'T tell you (they're always only screaming about their prices 🙄), here's an article which you might like to read: https://blog.seedly.sg/oem-electricity-retailer-terms-and-conditions/
Answer image preview

Family

Lifestyle

Electricity Market

SeedlyTV EP08

Fergus Tan
Fergus Tan

()

Level 3. Wonderkid
Answered on 16 Jul 2019
Most smart home products tend to be low electric consumptions by itself, but it will be impossible to give you the exact number without knowing the product. Also, to be honest, Singapore's electric is actually pretty affordable versus our cost of living. Let me give you an example. I use Sembcorp power, so I use that as a gauge. It costs less than 18cents per kWh (depending on your promo rate) Xiaomi Mijia's CCTV uses a USB adapter with a MAX draw of 5V x 1A or 5W. On youtube , you would find that typical use consumption is about 300mA. So what this means is that if you leave it on 24/7, it will cost about 0.3 x 5 x 24 x 30 = 1080Wh or 1kWh. So it will cost you 18cents of electricity to operate the CCTV Google nest hub, which is the newer version of a google display+speaker smart home automation device, has a 15W adaptor (ie, max power draw before it explodes). Typical use should be less than 50% of max power draw, which means it will cost you 7w x 24 x 30 = 5040, or 5kWh. This will cost you $1 per month. (In fact, if you look at https://www.the-ambient.com/features/power-smart-home-tech-yearly-cost-374 it shows you the standby cost, because it's assumed you are not having the screen on 24/7) One of the biggest item could be that you have a desktop running 24/7 at home. A typical desktop might have a 700W power supply unit, and on a typical use, it will draw 200W/h typically, and it will draw about 70W/h on standby. Assuming you use it 4 hours continuously in a day.. That means your cost is (4 70 + 20 200) 30 = 128kWh or $23/mo Hence in summary, most smart home devices are very low in power draw. This is due to bluetooth low energy, large amount of time spent on standby mode, and the use of LED to save power. This is coupled to fairly affordable power cost in Singapore, which means you really don't have to worry much, because your starbucks coffee costs more

SeedlyTV EP08

Electricity Market

Zen Rogue Xuan
Zen Rogue Xuan

()

Level 5. Genius
Answered on 16 Jul 2019
I welcome the many retailers as this would mean better prices for consumers:)

SeedlyTV EP08

Savings

Fan ZD
Fan ZD, Employee at A Bank

()

Level 3. Wonderkid
Answered on 17 Jul 2019
At a glance, I think most people will not know about the Wholesale Electricity Price (WEP) plan. So, first up - definitions. These plans are not the ones offered by the retailers out there brandishing all those steep discounts in the Open Electricity Market (OEM)! In contrast, you get the WEP plan from SP Group themselves. What you do when on such a plan, is essentially paying the half-hourly rate at the moment you use the electricity. For example, if you use more at non-peak periods (with presumably lower rates), then overall you MAY actually save some money. One of the use cases I can think of, naturally is those of people whose lifestyle/jobs are inverted to those of regular, working people, i.e. they use most of their electricity when most people don't. On the Price Cap Protector, I can't actually find any information on it. Anyone else able to shed more light?

SeedlyTV EP08

Electricity Market

General

Zen Rogue Xuan
Zen Rogue Xuan

()

Level 5. Genius
Updated 4w ago
SP is mandated to provide electricity at the given tarriff, which is updated every quarterly: https://www.ema.gov.sg/ResidentialElectricityTariffs.aspx However, OEM retailers are not. As such, they are able to give a discounted rate, in the form of discount off tarriff whcih ranges to about 20-25%, or a fixed discount rate which is currently about 28-30% discount. Interestingly, you pay less for a fixed rate, which is often not the case in real life-take for example mortage loans: the fixed rates are higher that that of a floating rate as you pay a premium for security. The gap between fixed rates and DOT rates are clsoing, and I predict that OEMs retailers will gradually raise their rates as the market matures. Finally, if you are not out to play the referral game nor interested in rebates, you can consider taking SP's wholesale plan by logging into SP services - click this tab 'Buy at Wholesale Electricity Prices'. AIM meter installation($42.80) is not compulsory as SP will charge you according to EMA's typical household load profile at the half-hourly wholesale rate. Calculations have shown the rates to be pretty competitive

SeedlyTV EP08

Electricity Market

Thomas Koo
Thomas Koo

()

Level 3. Wonderkid
Answered on 09 Jul 2019
Hi QP, Don't worry, you will not lose your electricity supply if you do not switch to a retailer. You will continue to receive electricity via the national power grid operated by SP Group.

SeedlyTV EP08

Electricity Market

Nicholas Tan Yi Da
Nicholas Tan Yi Da

()

Level 3. Wonderkid
Answered on 10 Jul 2019
Do look out for retailers that charging hidden fees like relocation fees, admin fees(there is a particular one but i wont name it, go do your research), etc. Look thru their factsheets. Hope that clarifies :)
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