Globally, energy prices are currently on the rise. Demand for energy has been growing globally and in Singapore with the gradual post-pandemic economic recovery. Severe weather events and a series of production outages have also disrupted energy supplies. This has sent global energy prices to new highs.
As a result, Singapore’s wholesale electricity market has also seen greater price fluctuations. Some electricity retailers in the Open Electricity Market, who have under-hedged against the prices increases, may find it challenging to sustain their operations and choose to exit the market.
EMA is working closely with these retailers to ensure a smooth transition for the affected customers.
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:
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
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 transfer; 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. In view of the developments in the global and domestic energy sector, we have taken pre-emptive measures to safeguard Singapore’s energy security and resilience. We are also monitoring the Singapore Wholesale Electricity Market closely and will intervene if necessary. You can refer to our media release for more information.