Singapore households have two options for buying electricity: the regulated tariff administered by SP Group, or a fixed or discount plan from a retailer in the Open Electricity Market (OEM). Understanding how each works can help you make a more informed decision about your electricity arrangement.
How Singapore's Electricity Market Works
Singapore's electricity system separates generation from retail. Electricity is generated by power companies and traded on the National Electricity Market of Singapore (NEMS). SP Group then distributes electricity through the national grid — this infrastructure is the same regardless of who your electricity retailer is.
What you can choose is the retail arrangement — who you buy your electricity from and at what price structure.
Option 1: The Regulated Tariff (SP Group)
What it is
If you do nothing, you are on the regulated tariff administered by SP Group. This is the default arrangement for all Singapore households.
How pricing works
The regulated tariff is reviewed and set every quarter (January, April, July, October) by the Energy Market Authority (EMA). The tariff reflects actual costs of generating electricity, including fuel costs (primarily natural gas), grid costs, and administrative charges.
Because it is reviewed quarterly, the tariff can change significantly from quarter to quarter depending on global energy prices.
Current tariff
In Q3 2026 (July to September 2026), the regulated tariff is:
- 31.91 cents per kWh (before 9% GST)
- 34.78 cents per kWh (including 9% GST)
This is a record high, representing a 17% increase from Q2 2026, driven by higher natural gas prices related to the Middle East conflict.
Advantages of the regulated tariff
- No contract, no lock-in — you can switch to an OEM retailer at any time
- No early termination fees
- No risk of retailer insolvency (SP Group is a government-owned entity)
- Automatic GST Voucher U-Save rebates are credited to your SP account
Disadvantages
- Fully exposed to quarterly rate changes — when global energy prices rise sharply, so does your bill
- Currently the most expensive option for most households
Option 2: Open Electricity Market (OEM) Retailers
What it is
Since 2019, Singapore households can buy electricity from licensed private retailers instead of SP Group. These retailers buy electricity on the wholesale market and sell it to consumers, typically at a fixed price or at a discount to the regulated tariff.
The electricity itself is identical — it flows through the same SP Group grid. What changes is the pricing arrangement and who you pay.
Types of OEM plans
Fixed price plan
- You pay a fixed cents-per-kWh rate for the duration of your contract (typically 12 or 24 months)
- Your bill amount fluctuates based on usage, but the rate per kWh is locked
- Provides certainty — if the regulated tariff rises sharply (as it did in Q3 2026), your fixed rate stays the same
- If the regulated tariff falls below your fixed rate, you pay more than you would on the regulated tariff
Discount off regulated tariff plan
- You pay a fixed percentage below the regulated tariff (e.g. 5% off)
- Your rate moves up and down with the regulated tariff, but always at a discount
- Less certainty than a fixed price plan, but you always pay less than the regulated tariff
- More common for shorter-term arrangements
Wholesale price plan
- You pay the wholesale market price, which changes every 30 minutes
- Higher risk — your bill can be very high if wholesale prices spike
- Generally suited to sophisticated users who actively monitor their consumption
How to switch to an OEM retailer
- Visit compare.openelectricitymarket.sg — the official government comparison portal
- Compare plans from licensed retailers
- Sign up directly with your chosen retailer
- Your retailer handles the switch with SP Group — no disruption to your electricity supply
Switching typically takes effect within one to two billing cycles. There is no physical change to your connection or meter.
What happens to U-Save rebates if I switch?
GSTV U-Save rebates are still credited to your SP Group account even if you buy electricity from an OEM retailer. The rebate offsets your SP Group transmission and distribution charges, which all households pay regardless of their retailer.
What if my OEM retailer stops operating?
If a licensed electricity retailer ceases operations, SP Group steps in as the "retailer of last resort" and continues supplying your electricity without interruption. You would then be placed on the regulated tariff until you choose a new retailer.
Comparing the Two Options
| Regulated Tariff | OEM Fixed Price | OEM Discount Plan | |
|---|---|---|---|
| Rate certainty | Changes quarterly | Fixed for contract duration | Moves with tariff (at a discount) |
| Lock-in | None | Typically 12–24 months | Typically 3–12 months |
| Early termination | N/A | Fee may apply | Fee may apply |
| Current rate (Aug 2026) | 34.78¢/kWh (incl. GST) | ~27–28¢/kWh (typical fixed plans) | ~5–8% below regulated tariff |
| U-Save rebates | Credited to SP account | Credited to SP account | Credited to SP account |
| Who provides supply | SP Group | OEM retailer (via SP grid) | OEM retailer (via SP grid) |
OEM rates are indicative. Always check current plans on compare.openelectricitymarket.sg.
Key Considerations When Comparing Plans
Contract duration and early termination OEM contracts typically run 12 or 24 months. If you move house or want to change plans before the contract ends, early termination fees may apply. Check these carefully before signing.
Rate lock vs rate exposure A fixed-price plan protects you if regulated tariffs rise (as they did sharply in 2026), but means you pay above the regulated tariff if rates fall. Historically, regulated tariffs have been volatile — there is no reliable way to predict which direction they will move.
Retailer track record Several OEM retailers have exited the market since 2019. While SP Group steps in as supplier of last resort in such cases, you may still face disruption to your billing arrangements. Checking a retailer's operating history and financial standing is worth doing before committing to a long contract.
Hidden fees Some plans include administrative fees, smart meter fees, or other charges that affect the effective rate. Always compare the total cost per kWh — not just the headline rate.
How to Check Your Current Arrangement
Log in to your SP Group account at spgroup.com.sg. Under "My Account," you can see whether you are on the regulated tariff or an OEM plan, and review your recent bills.
You can also use the SG Electricity Buddy to estimate your monthly consumption and see how your current arrangement compares to available OEM plans.
Key Takeaways
- The regulated tariff is the default — it changes quarterly and is currently at a record high (34.78¢/kWh including GST in Q3 2026)
- OEM fixed-price plans offer rate certainty for the contract duration — typically lower than the current regulated tariff
- OEM discount plans always price below the regulated tariff by a fixed percentage
- Switching to OEM does not change your electricity supply or U-Save rebate eligibility
- Always compare plans on compare.openelectricitymarket.sg before deciding
This article is for informational and educational purposes only. Electricity tariffs and OEM plan rates change frequently. Always verify current rates on the official EMA and SP Group websites before making any decisions.