The government in Singapore launched the Open electricity market (OEM) 2018. Since then, about half of Singapore households have turned to electricity retailers. With the increasing electricity charges and the price of fuels doubling, OEM has been a convenient switch. So, the open electricity market retailers are contributing to reshaping the dynamics.
Understanding the electricity market in Singapore
Electricity is manufactured in power stations in Singapore, just like most other countries. Retailers like SP Group purchase electricity from power stations in bulk. This electricity for households is based on a tariff predetermined by the Energy Market Authority (EMA) of Singapore. Retailers cover their operational cost too when charging the customers.
What is the Open Electricity Market?
OEM is a part of EMA’s efforts to deregulate or liberalize the electricity market allowing the households to purchase electricity from retailers other than SP Group. For households that haven’t opted for other options in the OEM, SP Group continues to sell electricity at tariff-based prices.
What are the other options, if not SP Group?
With the introduction of OEM, several retail players have entered the arena. Some of the top open electricity market retailers are listed below.
- Best Electricity Supply
- Diamond Electric
- Geneco by Seraya Energy
- Keppel Electric
Advantages of Open Electricity Market
- More choices – With more than one player in the market, customers get more options to choose from.
- Healthy competition and innovation – With multiple players in the market, it makes room for healthy competition. It is how innovative ideas take shape.
- Increased awareness of energy consumption – With multiple retailers, consumers are more aware of their electricity consumption patterns. It helps them to use electricity more cautiously.
- Savings for the customers – More competition is good for customers as they get better services with various price options.
- A fair chance for each retailer – With the introduction of OEM, the market dominance of SP Group has reduced. It has given a fair chance to all other electricity retailers.
The open electricity market is like a breath of fresh air for Singapore’s electricity distribution system. Many players other than SP Group have come up. This has created healthy competition, making room for innovation. All this has made electricity more feasible for people. Many households have already made the switch. With regulated prices and improved service, Singaporeans have been enjoying their ‘lit’ households. After all, deregulating or liberalizing is the most beneficial for customers’ pockets.