SP Services (member of SP Group), as the Market Support Services Licensee (MSSL), has to furnish security deposit to the wholesale electricity market operator, Energy Market Company, for the total electricity purchased for its customers regardless of the customers' credit standings. Hence, consumers who choose to purchase electricity from the wholesale electricity market through SP Services are required to place security deposits.

Retailers will usually request consumers to provide their past electricity bills for reference, in order to determine the appropriate amount of security deposit to collect from each consumer.

The security deposit that retailers would require from business consumers will differ among retailers, depending on the size of the business and its typical electricity bill.

If you buy electricity from the wholesale electricity market through SP Group, you are required to provide a security deposit equivalent to 1½ times your average monthly electricity charges. If you have an existing security deposit with SP Group, it will be used to offset any outstanding charges of your existing SP Group electricity account. Any excess from your security deposit will be transferred to your new MSS account. The remaining security deposit amount required will be billed to you. If you do not have an existing security deposit with SP Group, you are required to furnish the security deposit in cash, cheque (made payable to SP Services Ltd) or banker's guarantee to SP Services by the end of the grace period.

Depending on your contract agreement, your existing retailer may use the security deposit collected to offset your final bill. Your retailer is required to refund any remaining security deposit to you no later than 30 days from the settlement of your final bill.

The existing security deposit with SP Group will be split between your electricity and non-electricity accounts. Security deposit for the electricity account will be used to offset any outstanding charges with SP Group. Any remaining security deposit will be used to offset future non-electricity charges. Alternatively, you may request SP Group to refund this amount.

Your selected retailer may require you to provide a security deposit.

If your retailer bills you directly

You may need to provide a security deposit to your retailer. Your existing security deposit with SP Group for electricity will be used to offset your last electricity invoice. Any remaining will be used to offset your next non-electricity bill. If you wish to receive a refund of the remaining security deposit with SP Group for electricity, please contact them. 

If your retailer bills you via SP Group

Depending on the amount of security deposit that your retailer requires, you may need to top up your existing security deposit with SP Group or directly to your retailer.