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The Electricity Market

I am a iSwitch electricity retailer customer and I have called them to confirm that they are closing down as was reported online. They are.

Like many affected customers, whether corporate or residential, I am disappointed but fortunately, our electricity supply is not likely to be disrupted because our accounts will either be ‘returned back’ to Singapore Power which will continue to supply electricity to us or we can choose to migrate to another electricity retailer before 11 Nov 21.

So, should people be concerned? The answer is a loud Yes. Let me explain.

The Singapore electricity market was liberalised in 2001. Since then, retail users, whether corporate or residential, instead of only buying electricity from Singapore Power now have other choices and often at more competitive prices too.

Although most electricity retailers are only retailers and not electricity producers themselves, still electricity is a highly strategic commodity with national security significances and implications.

Everything about the electricity retail market liberalisation seemed so right on papers and the lhl government seemed so clever for a while but what happened in the years after the electricity market was liberalised?

Over the years, brakes were abruptly applied to a numbers of electricity retailers such as Red Dot Power, Energy Supply Solutions, Sun City, Charis Electric, Smart City Energy and now iSwitch. They have all thrown in their towels and call it quits.

I accept that companies and their businesses can boom and can go bust too but when retail electricity licences were given out so liberally like toilet papers and electricity retailers can come and go like nobody’s business, then that cannot be good or safe for our country’s international image, our country’s reputation, our productivity and our national security! (Please read this paragraph again).

I ask shouldn’t a much higher benchmark, expectations and punitive consequence conditions etc be set for any potential electricity retailers who wish to enter into this market?

It worries me if lhl and his superstar scholar and general ministars understand enough about all that. Looking at all those attrition numbers, the answer is obvious.

Here, ivy league university education once again proves nakedly that it is no match for kindergarten level common sense.

Think.

 

Simon Lim

 

 

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READER COMMENTS BELOW

11 Responses to “The Electricity Market”

  • illiterate pap voters:

    If the other supplier buys power from SP and sells it to you, surely SP could have sold you at the same price it is selling to the other supplier.

    After all, unless the other supplier produces power itself, it is nothing but an extra hand in the matter producing nothing but waste.

    Rightfully consumers, in such cases, should be able to demand same pricing from SP as SP is selling to the other suppliers.

    But as things stand, pap is so stupid, and cotton sheep so docile, such anomaly can exist.

    Remember. Buying power from a supplier who buys from SP means 100% SP is not selling you at the right price.

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  • theforgottongeneration:

    This OEM (Open Energy Market) is yet another of the expensive 3G’s Act-Smart-but-Fall-Flat schemes. No doubt there are many potentials in some of the schemes, but typically the 3G clowns just rushed in without thinking thoroughly the possible impacts and effects – seemingly only want to score some quick points to justify their million$ salary. Like the bicycle-hire scheme – let in operators with 100,000 bicycles without thinking where they will be parked! PMD scheme – without first improving the infrastructure and not having a flammability criteria until 70,000 PMDs are already imported. And best of all, if fail, then the clowns responsible are rotated into other ministries and Boss just Act Blur, hor.

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  • Fire:

    illiterate pap voters:
    If the other supplier buys power from SP and sells it to you, surely SP could have sold you at the same price it is selling to the other supplier.

    After all, unless the other supplier produces power itself, it is nothing but an extra hand in the matter producing nothing but waste.

    Rightfully consumers, in such cases, should be able to demand same pricing from SP as SP is selling to the other suppliers.

    But as things stand, pap is so stupid, and cotton sheep so docile, such anomaly can exist.

    Remember. Buying power from a supplier who buys from SP means 100% SP is not selling you at the right price.

    I not ELUcated but obviously you got a point.

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  • strange:

    Strange … liberalised with only one supplier ?

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  • Sure close shop:

    A, B, C, D, E, F retailers buy electricity from SP. All of them including SP sell electricity. All have access to the same electrical network to customers.

    All customers are already buying from SP.

    How are the retailers going to survive?

    If any retailer can survive, it must be that SP sells to them a lot cheaper than it sells to customers. That means SP has been ripping off Singaporeans!

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  • Who r the Retailers' CEO:

    Investigative journalists should be able to reveal the names of the retailers’ CEOs and their topnotch personnels and whether they are related to any Masters of the Energy game.

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  • Taleban:

    SP owns the power grid (the cables) that is used for the transmission and distribution of electricity. SP will charge a service for that (transmit and distribute)
    Power generation companies need to use SP (power grid) to reach (supply) their customers.
    What role does EMA (Energy Market Authority) play. Why are they adjusting the prices through tariff.
    Should not the prices of electricity be determined by the power generation companies?
    They know their cost and overhead of producing electricity. They should price electricity themselves instead of EMA.
    Forget those retailers. They are not required. The power generation companies can retail their products themselves through SP.
    There will be competition among the power generation companies.
    SP can still continue the billing on behalf of the power generation companies.
    Consumers buy directly from their choice of power generation company.

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  • AristoCATs - Elusive Choice ?:

    Papaya knows that they have a big PR problem when SG has no political freedom.

    So, in some areas, they attempted to provide – “choice”.
    -
    In the case of electricity, they liberalized it.

    Electricity is a commodity – is there a “better” electricity?

    All consumers care is a reliable supply at lowest price.

    Note, each Retailer has to have a full operation – Sales, Marketing, technical, etc.

    And, all compete on providing the lowest price.

    As many expected, only the big ones will survive.
    -
    A better approach will be for all suppliers to supply SingaporePower(SP) at their lowest price.

    SP, in turn, just pass on the lowest price to consumers.
    -

    Someone quipped –
    ever wonder why “highly educated” Papaya under-performing at their jobs?

    Paper qualification with “relevant experience” – ie. All theory with Zero experience.

    Minister Ah Wong was previously CEO of Energy Market Authority,
    the regulator that came with idea of Liberalization of electricity supply.

    Someone from “lousy school” knows such idea is “lousy”.

    -
    More than 39% should try the Power of the Ballot Box !

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  • Crony-Capitalist Enterprises:

    You sheeples wouldn’t follow these self-righteous generals into a righteous war…. why? Because their capricious enterprises ain’t never gonna to be a battle for righteousness….. Big (global) Illuminati on a little island.

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  • Harder Truths:

    This talk of privatisation is a joke. C’mon. How can any private company charge less for the same amount of electricity that they themselves have to buy from SP? Anyone buying from private retailers will have to be careful the supply does not go kaput.

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  • xoxo:

    This EMA’s bullcrap competion is analogous to having GRC barrier wayang with NCMPs and NMPs.
    LPPL theory applies.
    In fact,SP could have just CUT PRICES instead of increasing AGGREGATE COSTS OF DISTRIBTION fron the *retailers* who obtain supplies from A MONOPOLY SUPPLIER?

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