With the latest information rolling around, the electricity tariff in Singapore is said to increase to 24.11 cents per kilowatt-hour (kWh) in the last quarter of 2021. If one includes the GST factor, it will go up to 25.80 cents per kilowatt-hour (kWh). In talking a language that everyone understands, it means increased figures on the electricity bills. But, with an open electricity market promotion singapore model, people see a ray of hope.
Understanding what open electricity market means in Singapore
OEM or Open Electricity Market is a part of EMA’s efforts to liberalize or decentralize the electricity market in Singapore. It will allow households to purchase electricity from retailers other than SP Group, the only name to rule the market for years. SP Group sells electricity at tariff-based prices to households that have not shifted to the new option.
What was the scenario before the open electricity market promotion Singapore?
Electricity is manufactured in power stations in Singapore like that in other nations. Earlier, SP Group was the only dominant retailer to purchase electricity from power stations in bulk. They offered electricity on the price based on a tariff predetermined by Singapore’s Energy Market Authority (EMA). Like any other retailer, they covered their operational cost too when charging the customers.
Electricity is an essential yet expensive service in Singapore. However, the active open electricity market promotion singapore model has led to a liberalized system that is focused on going easy on the pockets of their customers. It will also lead to healthy competition and innovation in the long term.