Open Electricity Market (OEM) : I Switch You Switch , Save ! Save! Save!
image credit to Open-electric.sg |
Everyone seems happy recently (including STE ) as our pocket
will have some extra money from saving
of our electricity bill by switching to some other’s retailers, other than SP
Power.
STE just signed up with Keppel Electric on their FIXD24 plan
at $0.168/kWh vs current tariff of $0.2413/kWh (before GST ) which is around
30% discount from current tariff + $20 NTUC voucher.
😄
image credit to keppelelectric.com |
Alternatively, you may also sign up with DOT24 Fixed
Discount plan,i,e 22% discounted from the tariff, regardless of how much the tariff will be heading, peace of mind for at least 2 years.
Of course, this is not the only plan available in town,
there are other retailers which may offer you a better deal. If you are still
not sure what is Open Electricity Market (OEM) all about,
please refer to below link: which may give you an overview of OEM and some of
the offers from these retailers.
Complete
Guide To Choosing The Best Open Electricity Market (OEM) Plan For Your Home
(from
Dollar and Sense.sg )
Well, STE is happy to save about $20++ per month from my
electricity bill, which may use to offset some of my other utility bills.
image credit to keppelelectric.com |
Question is “Where is all this saving
Money$$ came from ?”
Someone forwarded this to me :
A letter to ST Forum that asking why the retailers could
offer a much lower rate than SP Power and still making money after all ops and
marketing cost, assuming that this business model is profitable and they
survive eventually?
I try to do some
rough estimation on how much saving as a nation in total by households breakdown,
in case 30% successfully switch from SP Power to other retailers.
Why 30%?
“At a media
briefing on Friday, EMA's chief executive officer Ngiam Shih Chun said that the soft launch in Jurong was "very successful".
About 30 per cent of households there have switched their electricity
retailers. Those who did are paying a rate that is about 20 per cent lower than
the regulated tariff.”
Total saving (by all households) for 30% switch
rate = $105.8 Mil
Total saving (by all households) for 50% switch
rate = $176.3 Mil
So the question here is from where the saving/money came
from? It will not just drop from the sky right or just chanting the “magic world “
: competition !! .
In the case of 4th Telco entering the market to
compete, when there was a price war which benefiting the consumer at large and
the price needs to be paid by the incumbent 3 telcos, where we have seen their
revenue and profits dropped significantly.
But for this case, there must be someone or entity need to
fork out the money right?
Well, clearly it will be from SP Power’s pocket and again, the
question which I posted earlier merry-go-round? Why SP Power has such high
tariff in the first place and not just giving the discount direct to current consumer.
I have written a blog about the profit of SP Power (here
) What Happen to Genco when SP Power is
making close to $1 Bil a year?
I might be too naive to understand the whole
concept or the so-called “comprehensive and complicated formula” in setting the
tariff where now suddenly we could have such huge cost saving just by switching
the electricity supply from SP Power to other retailers.
Can someone shed some light or am I the only one in “dark” without
the power supply from SP Power? :D
Cheers !!
Support Keppel Group. Lol!
ReplyDeleteYes !! :D , one of my top 3 holding ! LOL
DeleteI have also been wondering why SP charge so high and got away with it... government backing.
ReplyDeleteNow outsource and there are more than 10 coys. So many coys and if they can still survive with giving so much discount... it goes to show how much SP has been earning.. ridiculous..
Hi MIM,
DeleteYes , huge profit indeed, $1 Bil a year , no joke... they need to reduce by using "creative way "... hahaha :D
Cheers !!