The Energy Market Authority continually seeks to develop the electricity market for the benefit of consumers. These initiatives will enable both commercial and residential electricity consumers to enjoy more competitive electricity prices, increased retail options, and greater price transparency.
An example of such market development initiatives is the Electricity Futures Market, which was launched last April. This has enabled independent retailers with new business models to enter the electricity market offering consumers greater retail choices and price competition. For example, Town Councils have seen their electricity bills come down in new tenders. (Please see Question 2 for more details.) Another example is the opening up of the electricity retail market, known as the Open Electricity Market initiative. All electricity consumers will be able to enjoy more choices and flexibility in their electricity purchase options.
The MDSC will support a range of market development initiatives, such as the Electricity Futures Market and the Open Electricity Market. These initiatives will benefit consumers by bringing about competitive pricing and more choices.
More competitive pricing
An example is the cost savings that Town Councils have enjoyed because of the emergence of independent electricity retailers (i.e. retailers not linked to generation companies) that the Electricity Futures Market has facilitated. In the Sep 2015 tender results (shown below) for the supply of electricity, 10 Town Councils were able to enjoy 22% discount off SP tariff – an additional 7.5% in savings compared to the most competitive quote from an existing generation company and retailer. This amounts to about $2.1 million savings a year, which will eventually benefit electricity consumers.
More choices and flexibility
The Open Electricity Market is an initiative that allows electricity consumers to buy electricity from a retailer at a price plan that best suits their needs. This means consumers get to benefit from competitive pricing and innovative offers from the retailers. Visit www.openelectricitymarket.sg to find out more about this initiative.