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Households could pay less for power as electricity market opens up to competition

State of the City

Households could pay less for power as electricity market opens up to competition

Jeffrey Tan Published on Mon, Jul 10, 2017 / 1:57 PM GMT+8

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SINGAPORE (July 10): Type “compare mobile plans Singapore” in Google’s search box and you will get about 2.1 million results. Numerous articles and websites are devoted to helping consumers figure out whether they should take an M1 mobile plan or one from upstart Circles.Life; whether Singapore Telecommunications or StarHub has the better mobile-cum-TV package; and which telco charges the least for data.

By next year, it may be possible for consumers to make similar comparisons for electricity prices. In 2H2018, the country will implement full retail competition (FRC) in the electricity market. Households will no longer be forced to purchase electricity from Singapore Power Services (SPS). Instead, they will have the option of buying electricity from many different electricity retailers. Importantly, these retailers are expected to offer lower tariffs. Small industrial and commercial consumers will enjoy the freedom to choose their electricity retailers.

Currently, only those with an average monthly consumption threshold of at least 2,000kWh can do so. They are known as contestable consumers and number about 35,000, according to regulator Energy Market Authority (EMA).

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Households could pay less for power as electricity market opens up to competition

State of the City

Households could pay less for power as electricity market opens up to competition

Primary tabs

Error message

Households could pay less for power as electricity market opens up to competition

State of the City

Households could pay less for power as electricity market opens up to competition

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