Open electricity market will benefit consumers

We thank Mr Tan Kin Lian for his letter (Better way is for prices for utilities to be regulated; Nov 11).

The Energy Market Authority (EMA) will fully liberalise the retail electricity market in the second half of next year (2018).

This initiative, the Open Electricity Market, will provide the remaining 1.4 million accounts, mainly households, with choice and flexibility to buy electricity from retailers of their choice.

With retail competition, consumers stand to benefit from competitive pricing, enhanced service standards and innovative offers.

EMA has worked with SP Group and retailers to streamline the switching process to make it as seamless as possible and with minimum hassle for consumers.

Consumers can also choose not to switch.

Some retailers will be engaging SP Group to provide a consolidated bill for electricity charges and charges for other utilities such as water and town gas supply.

Consumers who have switched and prefer to continue receiving a single utility bill can opt to purchase electricity from such retailers.

Mr Tan proposed to divide Singapore into zones and tender out the supply of electricity to a single retailer in each zone.

Doing so will limit the competition among retailers, and restrict choice for consumers.

Dorcas Tan (Ms)

Director, Market Development and Surveillance Department

Energy Market Authority