5 Key Things to Know If Your Retailer Exits the Market
1. Will my electricity supply be cut off?
There will be no disruption to your electricity supply. You will continue to receive your electricity supply through the national power grid that is operated by SP Group.
2. Why must my electricity account be transferred to SP Group?
Your electricity account is transferred to SP Group only as a last resort, if the exiting retailer is unable to find another retailer to take over your account on the same terms and conditions.
After being transferred to SP Group, you may choose to switch to another retailer at any time. The new retailer will work directly with SP Group to make the switch for you. However, the price of electricity may be higher than before, given the current market conditions.
3. Will I still be able to use my GST U-Save rebates after being transferred to SP Group or if I switch to another retailer?
GST U-Save rebates are provided to you by the Government, not your retailer. Therefore, you will still be able to use your U-Save rebates with either SP Group or your new retailer.
4. What happens to my security deposit?
For households, your security deposit will be used to offset your final electricity bill. Any balance amount will be credited to your account upon contract termination, no later than one month from the settlement of your final electricity bill.
5. Why am I not compensated when the retailer is the one which initiated the early termination of contract?
As with all contracts, electricity contracts are commercial agreements signed between the retailer and its customers. Any compensation by the exiting retailer to the affected consumers will be subject to the terms and conditions of the signed contract.
We encourage you to reach out directly to your retailer if you wish to seek for compensation. If the matter remains unresolved, you can approach the following organisations for advice and assistance:
- For household/individual consumers: Consumers Association of Singapore (“CASE”)
- For business and household/individual consumers: Singapore Mediation Centre
In the event that you wish to pursue legal avenues, you may consider the following options:
- File a claim through the Small Claims Tribunal (“SCT”) for claim values not exceeding $20,000 (or $30,000 should both parties agree)
- For amounts exceeding the purview of SCT, you may seek legal advice if needed on how to proceed on this matter
Visit here for more FAQs relating to the exit of electricity retailers.
What Happens When a Retailer Exits the Market?
This is the usual process for consumers whose retailer exits the market.
i. The exiting retailer is first required to approach other retailers to take on your account under the same contractual terms and conditions. You may choose one of the following options:
Accept the transfer;
Reject the transfoer: or
Switch to another retailer of your own choice.
ii. You will be transferred to buy electricity from SP Group as a last resort. The exiting retailer will not be allowed to impose any early termination charges.
Households and small businesses with an average monthly consumption of less than 4MWh will buy electricity at the regulated tariff rate.
Larger businesses with an average monthly consumption of at least 4MWh will buy electricity at the wholesale electricity price.
iii. We advise you to approach other retailers to find a price plan that best suits your needs before the transfer. Please note that the price of electricity may be higher than before, given the current market conditions.
iv. As part of EMA's efforts to strengthen the existing power market structure, the regulatory framework for electricity retail licensees will be enhanced. Our focus is on enhancing consumer protection and ensuring that retailers can withstand extreme market volatilities. The enhancements include:
Ensuring retailers have a Tangible Net Worth of at least S$1 million at the time of licence application or renewal, to ensure that they are credible and have sufficient financial standing.
Getting retailers to seek EMA's approval to appoint key appointment holders, to ensure that the individuals leading and managing the companies are fit and proper.
Requiring retailers to hedge at least 80% of their retail contract position and provide a performance bond for any unhedged position, to increase resilience against market volatility.
Protecting consumer against premature termination of retail contracts.