Tang See Kit Channel NewsAsia 21 Sep 18;
SINGAPORE: From November, all 1.4 million electricity consumers in Singapore will have the option of choosing their preferred electricity price plans from as many as 12 providers.
With the nationwide roll-out of the Open Electricity Market, consumers will no longer have to buy electricity from SP Group at a regulated tariff that is reviewed quarterly. This option, however, remains available to consumers if they do not wish to switch, said the Energy Market Authority (EMA) on Friday (Sep 21) while announcing the roll-out.
The expansion of the open market initiative will be done in stages, beginning Nov 1 with households and business accounts that have postal codes that begin with 58 to 78. This includes districts in Choa Chu Kang, Yishun, Sembawang and Upper Bukit Timah.
This will be followed by the adjacent geographical zone that have postal codes starting with 53 to 57, 79 to 80, 82 to 83 next January; 34 to 52, and 81, from Mar 1; and lastly, the zone with postal codes starting with 01 to 33 in May.
This progressive launch over six months will help authorities and electricity retailers to focus their efforts on engaging and educating consumers, said the EMA.
Prior to each roll-out, the consumers – about 350,000 households and businesses in each zone – will receive a notification package and information booklet. Consumers can also compare the price plans by visiting http://compare.openelectricitymarket.sg.
EMA said a “good mix” of independent retailers and those with power-generation assets will be involved in the expanded Open Electricity Market. They are Best Electricity, Environmental Solutions, Geneco, ISwitch, Keppel Electric, Ohm Energy, PacificLight Energy, Sembcorp Power, SingNet, Tuas Power and Union Power.
SOFT LAUNCH IN JURONG “WELL RECEIVED”
Currently, only consumers in Jurong – comprising 108,000 households and 9,500 businesses – can choose their electricity price plan from more than 10 retailers under a pilot programme launched on Apr 1.
More than 30 per cent of Jurong consumers have since switched to a retailer, instead of remaining on the regulated tariff with SP Group – a result that EMA chief executive Ngiam Shih Chun described as “well-received” and “successful”, compared to the single-digit take-up rate in other parts of the world.
“Jurong residents benefitted from more choices and flexibility. Those who switched paid an electricity rate which was on average about 20 per cent lower than the regulated tariff,” said Mr Ngiam.
He stressed that the initiative is not compulsory and is aimed at providing consumers with more competitively-priced and innovative options.
Speaking to the media after the announcement, Trade and Industry Minister Chan Chun Sing said that the positive feedback gathered from the soft launch in Jurong has given the Government confidence that the rest of Singapore is ready for a fully-liberalised power market.
“We have done this carefully and progressively (and) we have collated our experiences to make sure that when we roll it out to the rest of the country, we will have the least problems possible,” he said.
From the Jurong pilot, stakeholders learnt that consumers feel overwhelmed at the number of retailers and the wide variety of plans offered.
As such, EMA will remove the peak and off-peak plans, and simplify standard plans offered by retailers to just fixed price plans and a discount-off-the-regulated-tariff plan. The former saw a low take-up rate of less than 1 per cent during the soft launch, according to EMA.
The statutory board also standardised the duration of the price plans to six months, one year and two years. Retailers had started offering trial plans as short as three months, which were not reasonable and could be confusing for consumers, said Mr Ngiam.
FOUR RETAILERS EXIT NATIONWIDE LAUNCH
The EMA has progressively opened up the electricity market to competition since 2001, starting with larger businesses with higher electricity consumption, and is now in the final phase to open up the local power market fully to competition.
While the freedom to pick customised price plans is similar to how one would pick a mobile telco, the Open Electricity Market differs in that the national power grid will remain operated by the SP Group to ensure supply reliability.
So even if a retailer exits the market, there will be no disruption to electricity supply as consumers will continue to receive electricity through the national power grid, EMA said.
Four retailers that participated in the Jurong pilot have opted out of the nationwide launch. EMA said these electricity providers – Diamond Electric, Red Dot Power, Sun Electric and Sunseap – will be required to inform their 500 consumers and to honour the contracts until the end.
When contacted, Red Dot Power said that it is currently upgrading its digital delivery platform, including integrating its electricity retail offering with residential solar and electricity consumption optimisation solutions.
“In view of this, Red Dot Power has decided to delay the participation in the Open Electricity Market till a later date,” it wrote in an emailed response to Channel NewsAsia. It will rejoin the Open Electricity Market “soon ... with an enhanced digital platform”, it added.
Similarly, Singapore-based sustainable energy firm Sunseap said it continues to set its sights on the full launch while it upgrades its systems and suite of products.
Mr Laurence Kwan, its vice president of energy, told Channel NewsAsia that the company is undergoing a “system upgrade”, which includes streamlined billing and payment experiences, and stressed that the company is “in for the long haul”.
Both companies sought to assure their customers in Jurong that there will be no power disruptions and that they will continue to honour the contracts signed.
Source: CNA/nc(cy)
Consumers may switch electricity retailers as open market rolls out in phases from Nov 2018 to May 2019
JANICE LIM Today Online 21 Sep 18;
SINGAPORE — Starting from Nov 1, consumers will be able to choose their electricity supplier when the open electricity market is expanded to cater to them zone by zone around the island.
By May next year, when the full roll-out is completed, 1.4 million households and small businesses will have the option of buying electricity from 12 different providers.
Instead of being restricted to buying electricity from national utility provider SP Group at a regulated tariff as they do now, consumers may choose a price plan that meets their needs from the authorised retailers within the open market.
The Energy Market Authority (EMA) announced the staggered roll-out on Friday (Sept 21), after five months of piloting the project in Jurong.
From November, the first zone to have access to the open market are areas with postal codes starting from 58 to 78.
The next will be from Jan 1 next year, for postal codes starting with 53 to 57, 79 to 80, and 82 to 83.
After that, from March 1, it will be postal codes starting with 81 and 34 to 52.
Finally, from May 1, postal codes starting with 01 to 33.
TIME FOR PUBLIC OUTREACH
Ms Dorcas Tan, EMA's director of market development and surveillance, said that the decision to do the roll-out in phases is to allow the authority and the retailers to focus resources on engaging and educating the public in each zone.
Before each zonal roll-out, consumers will receive a notification package, which consists of an information booklet and a list of frequently asked questions.
Those who want to remain with SP Group need not take any further action. There is no deadline for switching to a new provider.
Households and workplaces will receive the same electricity supply regardless of the retailer because SP Group will continue to operate the national power grid and deliver electricity islandwide.
At a media briefing on Friday, EMA's chief executive officer Ngiam Shih Chun said that the soft launch in Jurong was "very successful".
About 30 per cent of households there have switched their electricity retailers. Those who did are paying a rate that is about 20 per cent lower than the regulated tariff.
The fixed price plan, as well as those that offer a discount off the regulated tariffs, were the most popular among Jurong households and small businesses.
The peak and off-peak price plans, however, saw a low public take-up of less than 1 per cent among Jurong consumers during the pilot launch, so Mr Ngiam said that they will be removed from the standard suite of price plans in the nationwide roll-out.
SAVINGS ON BILLS
Mr Chew Jin Ming, 30, who lives in Boon Lay, expects to see cost savings of about 25 per cent on his monthly electricity bill after switching to a fixed price plan offered by Geneco in mid-August.
Another Jurong resident, Mr Luqman Haniff told TODAY that he used to pay about S$220 a month in electricity bills. After switching to a fixed price plan offered by Ohm Energy on April 1, the 30-year-old's monthly bill comes to about S$180. This means there is an 18 per cent reduction in his bills.
With electricity tariffs rising 6.9 per cent in the quarter from July to September, Mr Luqman said that his cost savings is even higher, considering that he would be paying about S$240 a month if he had not switch supplier.
While the aim of liberalising the electricity market is to give consumers choices through competitive pricing and innovative offerings, Mr Ngiam reiterated that consumers are not required to switch providers.
RETAILERS' RESPONSIBILITIES
As part of measures to safeguard consumers' interests, EMA requires retailers to protect all security deposits collected from households. Retailers also need to produce a consumer advisory and factsheet to consumers.
Speaking to reporters after the briefing, Trade and Industry Minister Chan Chun Sing said that the positive feedback during Jurong's pilot phase gave the authorities the "confidence" to roll out the initiative to the rest of the country.
One of the lessons learned, he noted, was the diversity of consumers in the retail market, ranging from older citizens who may not be able to converse well in English, to younger families who have a higher level of understanding.
A "more detailed" explanation to consumers is required, he added.
Four retailers who took part in the soft launch — Diamond Electric, Red Dot Power, Sun Electric, Sunseap — will not be part of the nationwide launch. They are re-assessing their business plans or developing certain products or systems for the time being.
For the 500 or so consumers who had signed up with these four retailers, there will not be any disruption to their electricity supply as their contracts will still be honoured.
However, since they cannot renew their contracts when the term is up, they may either switch back to SP Group or get another retailer.
This also applies to consumers who have signed up with other retailers who may decide to exit from open electricity market in the future.
Responding to TODAY's queries, Sunseap, Sun Electric and Red Dot Power are still looking to rejoin the open market some time in the future.
Red Dot Power and Sun Electric said that they are developing and upgrading their digital portal to allow greater convenience for consumers to sign up, while Sunseap is in the midst of enhancing its systems and suite of products.
All three electricity retailers assured their existing customers that they would not face any disruption to their electricity supply.
LIST OF PARTICIPATING RETAILERS
Best Electricity Supply
Environmental Solutions (Asia)
Geneco (by Seraya)
I Switch
Keppel Electric
Ohm Energy
PacificLight Energy
Sembcorp Power
Senoko Energy
SingNet
Tuas Power
Union Power
BACKGROUND
Since 2001, the EMA has been progressively opening up the electricity market to promote greater competition, giving consumers the choice and flexibility to buy electricity from retailers.
About 108,000 households and 9,500 business accounts in Jurong had the option of buying electricity from 13 retailers under a soft launch of the open market which kicked off on April 1 this year.
The final phase of market liberalisation will start Nov 1.
Hyflux Energy was one of the retailers taking part in the pilot, before announcing in June that it was pulling out until further notice due to competition.
Singapore customers able to choose electricity supplier from November
Jose Hong Straits Times 21 Sep 18;
SINGAPORE - Customers here will be able to choose their electricity retailers starting from November, in an expansion of the open electricity market that launched in Jurong this April.
By May next year, 1.4 million more households and business accounts will be able to buy electricity from 12 different retailers, the Energy Market Authority (EMA) announced on Friday (Sept 21).
The nationwide launch will be rolled out progressively in four stages, according to postal codes. Those that begin with the numbers 58 to 78 will be the first to choose on Nov 1.
On Jan 1, it will be 53 to 57, 79 and 80, and 82 to 83.
Postal codes that begin with the numbers 34 to 52, and 81, can choose from March 1.
The last codes to choose, starting from May 1, will be those from 01 to 33.
Before the roll-out, which will impact 350,000 accounts in each phase, consumers will receive a notification package and information booklet.
EMA director for market development and surveillance Dorcas Tan said that the zonal roll-out was to ensure that retailers and the authorities would be able to focus their resources and fix issues that come up.
There is no deadline for switching and it is not compulsory for households to do so. Consumers can choose to stay with SP Group.
How do I sign up?
1. Read the notification package and information booklet that you will receive before the roll-out comes to your neighbourhood
2. Shop around and check out the price plans retailers have to offer with this price comparison tool: http://compare.openelectricitymarket.sg
3. Contact your preferred retailer for details on the price plan, and carefully read through the contract.
4. Sign up with the preferred retailer, who will work with SP Group to make the switch for you. Your contract will start as early as five business days after your retailer informs SP Group to make the switch.
EMA chief executive Ngiam Shih Chun said: "Jurong residents benefited from more choice and flexibility. Those who switched paid an electricity rate which was, on average, about 20 per cent lower than the regulated tariff."
He said that more than 30 per cent of eligible accounts in Jurong switched their electricity retailer, which surprised the EMA, as the take-up rate in other parts of the world tended to be in the single digits.
"This is all about choice," said Mr Ngiam, adding: "We now hope to bring the benefits of competitive pricing and innovative offers to the rest of Singapore."
Speaking at the launch, Minister for Trade and Industry Chan Chun Sing said that after opening the electricity market to businesses, and following the Jurong pilot, the rest of Singapore is now ready for liberalisation.
"We have done this carefully and progressively, and have collated our experiences to make sure that when we roll-out the market to the rest of the country, we will face the least problems."
Four retailers who took part in the Jurong pilot - Diamond Electric, Red Dot Power, Sun Electric, and Sunseap - will not be part of the nationwide launch.
They have various reasons for this, including the reassessment of their business plans and focusing on developing certain products or platforms.
However, they will continue honouring the contracts to the 500 or so accounts they now have in Jurong. They will also be able to take part in the open electricity market at a later point.
Jurong resident Marcos Ong changed his retailer to Keppel Electric.
The 26-year-old, who lives in an executive condominium with four roommates, said: "I have seen savings of up to 25 per cent off my monthly electricity bill since switching to Keppel Electric. The open electricity market brings about opportunities for both consumers and businesses to have a wide variety of options."
Consumers can compare prices at http://compare.openelectricitymarket.sg
HOW WILL I BE PROTECTED? AND OTHER FAQS
How do I know that my rights as consumer are protected?
The Energy Market Authority (EMA) has created a consumer advisory, and all retailers must make sure you acknowledge the document before they proceed with the switch. Retailers also need to safeguard each household’s security deposits.
If retailers fail to comply with the terms of their licence with EMA, they can be suspended or have their licence taken away.
You can also approach the Consumers Association of Singapore (Case) during disputes with the retailer.
Will I be deluged with marketing calls?
Retailers are banned from door-to-door marketing, or from giving unsolicited calls or messages. For greater assurance, you can register with the Do Not Call Registry.
How is it possible for retailers to charge lower rates?
The regulated tariff reflects the long-term costs of producing electricity in the market (including fuel costs), while the retailers' rates reflect the short-term costs that depend on current market conditions and the varying levels of competition.
An analogy is property. The price one pays for property is typically stable across the loan period, while the market rate of renting out the same property will depend on the demand and supply in the housing market.
Will switching always lead to lower bills?
It depends. The factors on which retailers set their rates (for example, electricity demand and supply levels, and competition fierceness) may vary over time.
There is no guarantee that the electricity rates they offer will remain at current levels.
That said, those who switched retailers in the Jurong pilot paid an electricity rate that was, on average, about 20 per cent lower than the regulated tariff.
Must consumers submit meter readings after switching?
Only those who wish to be billed based on their actual meter readings every month need to submit meter readings.
SP Group will continue to read meters once every two months, so it will estimate the meter readings for billing purposes.
What if a retailer suddenly pulls out from the open electricity market?
Your electricity supply will not be disrupted. You will continue to receive power through the national grid operated by SP Group.
Businesses with an average monthly consumption of at least 4,000 kilowatt hours, however, will buy electricity indirectly from the wholesale electricity market through SP Group at wholesale electricity market prices.
WHO ARE THE RETAILERS?
Best Electricity, Environmental Solutions (Asia), Geneco, iSwitch, Keppel Electric, Ohm Energy, PacificLight Energy, Sembcorp Power, Senoko Energy, SingNet, Tuas Power, and Union Power.
