You may be aware that from November 2018, the residential households can pick from various electricity retailers and buy their electricity from. For many people, this will be a bit unnerving or confusing, as we are buying power from one company. With impending launch of Open Electricity Market retailers, Singapore households can select from over 13 electricity retailers, and each one them offering various plans for your benefit.
How Does It Work?
What does this mean to purchase electricity from company? Will electricity reliability get affected? Is this compulsory to switch over?
Now that OEM is open to residential households, here is the overview of choices that are available so that you will make the right choice for your requirements.
To understand what the electricity retailer exactly is, we have to understand how the electricity is been produced or sold. Singapore energy market always has been the eco-system made from many players. Everything begins with electricity produced by the power plants that are been owned or operated by the power generation companies. Each half an hour, the power generation companies have to bid for the contracts to generate or sell the specified quantities of the power on wholesale electricity market. The retailers buy electricity in lot from wholesale electricity market and supply to the consumers.
After that electricity generated is transmitted from power plants as well as distributed over the island on national power grid that is operated by the company. Thus, company buys electricity in huge amount from power generation companies for Singapore households.