Is Singapore Geared Up For The Open Electricity Market?
The Energy Market Authority (EMA) launched the
Open Electricity Market (OEM) proper on November 1, 2018. As a measure to
enhance the electricity market in terms of competitiveness and to encourage innovativeness,
the OEM marks a progressive wave in the market. With a new market structure
involving multiple retailers, consumers and operational processes, is Singapore
geared up for it?
The Open Electricity Market
The full launch of the Open Electricity Market means that residential and
business consumers have a choice in deciding who they want to purchase their
electricity from, out of a current list of thirteen retailers.
Before the Open Electricity Market was introduced, Singaporeans only had SP
Group to rely on for their electricity supply. Each retailer provides a range
of standard and non-standard price plans for consumers to choose from. After
comparing different price plans, they can choose one which befits their households’
and businesses’ electricity usage pattern. Such plans are usually retailed at a
cheaper rate than what SP Group provides, which is at regulated tariffs.
Marketing Guidelines for Electricity Retailers
As a new market, every retailer starts on the same foothold and is keen on
gaining market share via sales and marketing tactics. The EMA has put in place
measures to protect consumers from potential dishonest marketing practices by
retailers. One of it is the banning of door-to-door marketing activities within
residential areas. The reason given was that such activities might forward
gimmicks created by retailers such as attractive cash rebates.
However, tactics such as those are detrimental in the long run as it encourages
excessive consumption of electricity or may promote an inaccurate price plan
with inconsistent discounts and rebates given. With such tactics, the retailer
with the highest market share might not offer the most environmentally friendly
or cost-saving plan but are plainly leveraging on their marketing prowess. This
goes against the aim of the OEM which serves to provide competitive pricing and
innovative offers to all Singaporeans.
The Future Aim of the OEM
The OEM plans to leverage on residential and business consumer market to
meet Singapore’s solar energy production goals. By tapping into a retailer’s
pool of solar-based energy consumer, Singapore hopes to generate a solar
photovoltaic power goal of 350MW by 2020.
Challenges to this New Aim
To realise this target, Singapore must deploy large-scale solar panel systems.
However, the condition seems unfavourable looking at the island’s land and
space constraints. Instead, Singapore can look at the larger picture and lend a
hand in building and leading Asia’s renewable energy efforts. Its proven record
in efficiently managing utility infrastructure, legal structures and an
expertise in urban planning will greatly contribute to this journey.
So, is Singapore Ready?
The revamped structure of Singapore’s electricity market looks at a bigger
picture beyond just financial benefits to a consumer’s monthly bills. With big
goals to achieve – such as creating a sustainable local source of solar energy,
and building Asia’s renewable ecosystem – Singapore has a lot on its plate. That
being said, its track record of bureaucratic capabilities will certainly be a
booster to the region’s bigger effort.
Zooming down into consumers and the local market, they have been given avenues
to learn about the OEM via heartland roadshows and on the online sphere, local
comparison sites and official information portal by the EMA. Therefore, readiness
is not an issue for Singaporeans, seeing the various outlets of education they
have in regards to the OEM.
Geared up to know more? Click
the following site to learn about a retailer that powers the change in
Singapore’s Open Electricity
Market.