SINGAPORE — Nearly one-fifth of consumers in areas such as Ang Mo Kio, Bishan, Hougang and Punggol have made the switch to a different electricity retailer just one month after the Open Electricity Market initiative kicked off in these neighbourhoods.

This was announced by the Energy Market Authority (EMA) in an update on Friday (Feb 8). It said that Zone 2, which these areas are a part of, had a higher early switch rate of about 18 per cent as of end-January as compared with Zone 1 and the soft launch in Jurong.

Zone 1 areas such as Choa Chu Kang, Sembawang and Yishun had a switch rate of about 25 per cent since the initiative was rolled out in November last year. There are over 700,000 consumers living in Zone 1 and 2.

EMA said that consumers who chose not to make the switch from energy utilities company SP Group to other retailers cited reasons such as their preference to stay with SP Group and concerns that their electricity supply might be affected if they made a switch.

The authority's update on the Open Electricity Market initiative comes about three months into a nationwide rollout that allows consumers here to choose from 13 energy retailers.

SAVINGS FOR CONSUMERS

• Consumers who have switched to different electricity retailers pay an electricity rate of about 20 to 30 per cent lower than normal regulated tariffs.

• The retailers offered rates ranging from 17.66 cents per kilowatt hour (kWh) to 23.01 cents per kWh for their fixed price plans, said the EMA.

• They also offered discounts of between 14.5 per cent and 25 per cent for their regulated tariff plans.

HIGH AWARENESS

• 96 per cent of residents in Jurong and Zone 1 have heard of the initiative.

• Three in four residents took some form of action — seeking information online, discussing the initiative with family and friends — after hearing about the Open Electricity Market, said the EMA.

• 50 per cent of residents surveyed said they were open to making a switch.

• Consumers polled also said they hoped for more flexible price plans and lower electricity bills.

The Open Electricity Market is about giving consumers choice. While some consumers have chosen to switch, others have decided to continue buying from SP Group. Some are also taking a wait-and-see approach as there is no deadline to switch. Consumers are encouraged to take time to learn more about the options and price plans available before deciding whether to switch.” – Mr Ngiam Shih Chun, EMA chief executive.

ABOUT THE OPEN ELECTRICITY MARKET

Since 2001, the EMA has been progressively opening up the electricity market to promote greater competition by giving consumers the choice and flexibility to buy electricity from retailers.

On April 1 last year, residents in Jurong were the first in Singapore to come under the Open Electricity Market initiative as part of a soft launch. Consumers living in Zone 1 were next to be part of the initiative, followed by those in Zone 2.

From March 1 this year, those living in Zone 3 (areas such as Bedok, Macpherson and Tampines with postal codes that begin with 34 to 52 and 81) will be able to choose which retailer they want to purchase electricity from.

The last residential neighbourhoods to choose will be those with postal codes that begin from 01 to 33. These are areas such as Clementi and Queenstown. They can do so starting from May 1.

The list of retailers, according to the Open Electricity Market website, are:

• Best Electricity Supply

• Diamond Energy Merchants

• ES Power (by Environmental Solutions (Asia))

• Geneco (by Seraya Energy)

• I Switch

• Keppel Electric

• Ohm Energy

• PacificLight Energy

• Sembcorp Power

• Senoko Energy Supply

• Sunseap Energy

• Tuas Power Supply

• Union Power