Consumer interests protected in open electricity market

We thank Mr Paul Chan Poh Hoi for his views (Concerns about new option to switch power retailers; Sept 29).

The open electricity market gives consumers the choice to buy electricity from a retailer or to remain with SP Group.

The regulated tariff, charged by SP Group and approved by the Energy Market Authority (EMA), is set based on a fixed formula that reflects the long-term costs to produce and deliver electricity in Singapore.

Retailers, however, set their price plans based on their own business strategies and may adjust their prices over time to adapt to factors such as prevailing market conditions and level of competition.

Household consumers, after switching to a retailer of their choice, may subsequently switch back to buy electricity from SP Group at the regulated tariff.

While SP Group does not charge a fee for switching back, consumers should check with their retailers if there are any applicable charges such as early contract termination fees imposed by their retailers.

If a retailer ceases operations, its customers' accounts will automatically be transferred to SP Group at no extra cost and they will be billed according to the prevailing regulated tariff.

Consumers who do not wish to be transferred to SP Group can submit a request to be transferred to another retailer of their choice.

They should check if their new retailers will impose any charges such as registration fees.

There will be no disruption to electricity supply during the switching process.

It is not mandatory for retailers to collect security deposits and there are retailers who do not do so.

Should a retailer collect security deposits from household consumers, the EMA requires the retailer to safeguard and return the security deposits when the need arises.

We encourage consumers to visit www.openelectricitymarket.sg for more information and use the price comparison tool to help them make informed decisions.

Soh Sai Bor

Assistant Chief Executive (Economic Regulation)

Energy Market Authority

A version of this article appeared in the print edition of The Straits Times on October 06, 2018, with the headline 'Consumer interests protected in open electricity market'. Print Edition | Subscribe