OEM encourages competition and innovation

To simplify choices for consumers, the Energy Market Authority (EMA) requires OEM retailers to offer standard price plans.
To simplify choices for consumers, the Energy Market Authority (EMA) requires OEM retailers to offer standard price plans. PHOTO: ST FILE

We thank Mr Cheng Choon Fei for his letter (Electricity retailers should offer innovative, transparent packages, March 9), urging retailers in the Open Electricity Market (OEM) to be more innovative and transparent in their offers.

To simplify choices for consumers, the Energy Market Authority (EMA) requires OEM retailers to offer standard price plans.

These come in six-, 12-or 24-month durations, with all-inclusive electricity rates for ease of comparison. A price comparison tool is also available at compare.openelectricitymarket.sg to help consumers compare all standard price plans offered by retailers.

Retailers can also offer other innovative packages, but they must clearly highlight to the consumer that these are non-standard price plans.

There are retailers who offer various types of price plans, ranging from green-energy options to those with tie-ups with other service providers, such as telecommunications companies, insurance companies and banks.

For such bundled services, retailers are required to clearly state the electricity rate and clearly specify the charges for the individual services.

To further safeguard consumers' interest, retailers also have to obtain consumers' acknowledgement that they have read their selected price plan's fact sheet, which highlights the plan's key terms and conditions.

Retailers are also required to inform their consumers at least 10 business days before their contracts expire or are due for renewal.

Consumers can choose whether to renew their contract, or switch to another retailer or to SP Group.

Dorcas Tan (Ms)

Director

Market Development and Surveillance Department

Energy Market Authority

A version of this article appeared in the print edition of The Straits Times on March 16, 2019, with the headline 'OEM encourages competition and innovation'. Print Edition | Subscribe