Electricity is more of a necessity than a luxury today. There is barely any household that doesn’t use electrical appliances. But, with the increased number of such appliances, electricity consumption increases, subsequently causing a hike in prices. To make things better, the Energy Market Authority (EMA) of Singapore liberalizes the electricity market.
How is electricity distributed in Singapore?
Just like most other countries, electricity is manufactured in power stations in Singapore. Retailers buy electricity from the power stations in bulk. One of the biggest singapore electricity providers is SP Group. The customers are charged based on a tariff predetermined by Singapore’s Energy Market Authority (EMA). Retailers cover their operational cost too when charging the customers. Along with this, the GST is added too, making the prices go up even more.
Open electricity market
To deregulate the prices and help customers pay fairly, the Energy Market Authority (EMA) of Singapore introduced the open electricity market. It enables customers to purchase electricity from several retailers and save money. Earlier, the SP Group was one of the biggest players. But due to the existence of OEM, there is more than one big retailer now.
Advantages of OEM
There are several advantages of more than one singapore electricity providers. Some of them are listed below.
- More choices – Since more than one player is in the market, and customers can choose from more options.
- Healthy competition and innovation – Multiple players in the market lead to healthy competition. It is how innovative ideas take shape in businesses and startups.
- Increased awareness of energy consumption – Consumers are more aware of their electricity consumption patterns. It helps them to use electricity more cautiously.
- Savings for the customers – More competition is good for customers as they get better services with various price options.
- A fair chance for each retailer – With the introduction of OEM, the market dominance of SP Group has reduced. It has given a fair chance to all other electricity retailers to rise in business.
Several big players are Best Electricity Supply, Diamond Electric, Geneco by Seraya Energy, etc.
Electricity is an essential service. However, the prices are hiking up now and then. This is why the open electricity market has come in as a saver for customers’ pockets. With informed customers, OEM is also a way to sustainability.