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.
| Tender in Sep 2015 for Supply of Electricity to East Coast,
Holland-Bukit Panjang, Moulmein-Kallang, Nee Soon, Pasir Ris-Punggol, Potong
Pasir, Sembawang, Tanjong Pagar, West Coast and Bishan-Toa Payoh Town
Councils |
| # |
Tenderer |
Discount % to SP Tariff |
Discount (₵/kWh) |
| 1 |
Independent retailer A |
22 |
4.5 (1.5 better than best offer from
incumbent genco) |
| 2 |
Independent retailer B |
18 |
3.7 |
| 3 |
Independent retailer C |
17 |
3.5 |
| 4 |
Existing generation company and retailer D |
14.5 |
3 |
| 5 |
Existing generation company and retailer E |
14.1 |
2.9 |
| 6 |
Existing generation company and retailer F |
13.01 |
2.6 |
| 7 |
Existing generation company and retailer G |
8.5 |
1.7 |
| 8 |
Existing generation company and retailer H |
5 |
1 |
| 9 |
Existing generation company and retailer I |
4.95 |
1 |
| 10 |
Existing generation company and retailer J |
3.2 |
0.7 |
The benefits of more competitive prices are not only confined to electricity consumers who buy from independent retailers. Due to the competition from the entry of more players, existing generation companies and retailers are also offering greater discounts to customers. This is reflected in their more attractive bids in a subsequent Town Council tender in Nov 2015 (shown below). Hence the Electricity Futures Market brings about benefits to consumers across the board, and not just to those who participate directly in the Electricity Futures Market.
| Tender in Nov 2015 for Supply of
Electricity to Ang Mo Kio, Chua Chu Kang, Jurong-Clementi, Marine Parade and
Tampines Town Councils |
| # |
Tenderer |
Discount % to SP Tariff |
Change in discount compared to Sep’15 tender (%) |
Discount (₵/kWh) |
| 1 |
Independent retailer C |
27 |
10 |
5.5 |
| 2 |
Existing generation company and retailer F |
26.01 |
13 |
5.3 |
| 3 |
Independent retailer A |
20.88 |
-1.12 |
4.2 |
| 4 |
Existing generation company and retailer E |
20.2 |
6.1 |
4.1 |
| 5 |
Existing generation company and retailer D |
20.1 |
5.6 |
4.1 |
| 6 |
Existing generation company and retailer H |
19 |
14 |
3.9 |
| 7 |
Independent retailer B |
16.88 |
-1.12 |
3.4 |
| 8 |
Existing generation company and retailer I |
15 |
10.05 |
3.1 |
| 9 |
Existing generation company and retailer G |
8.5 |
0 |
1.7 |
| 10 |
Existing generation company and retailer J |
5.5 |
2.3 |
1.1 |
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.
