What is Retail Electricity?
The Energy Market Authority (EMA) is the regulator of the National Electricity Market of Singapore (NEMS). Under EMA’s direction, the NEMS has been liberalized in phases, first, through generation assets being privatized and then through allowing large Commercial & Industrial (C&I) users to buy electricity from retailers. Red Dot Power (RDP) was the first independent retailer to begin servicing consumers during the last phase of liberalization in 2014. At present, all C&I consumers who use at least 2,000 kWh (around $400 bill amount) and above, of electricity per month are considered contestable and can buy electricity from retailers of their choice such as RDP. Households are non-contestable, meaning they can only buy electricity from Singapore Power (SP). However, the last big step in liberalization, due in the 2nd half of 2018, households will also become contestable, allowing them to buy electricity from an independent retailer like Red Dot Power.
How does it work?
NEMS is the market place in Singapore where electricity can be bought and sold. Generation companies sell their electricity to the market and all retailers buy electricity from the market, as does Singapore Power. This sounds strange because electricity is not an object, like a pencil, you cannot pick it up; you cannot put it in box and come back to it! What we’ve just described is the financial flow of money not the physical flow of electricity, that is handled by Singapore Powergrid, a division of Singapore Power Group. They take care of getting electricity from the generator to your socket in the wall. No retailer has a different supply, all buy electricity supplied to their consumers from the market and Singapore Powergrid will always handle the delivery to your home or workplace. Singapore Power also manage and read your meter. This consumption data is then passed on to the retailer by SP, so the retailer can then bill the customer. There is no difference in the supply of electricity when you change to RDP, except you are very likely to pay less.
So why switch?
Retailers can offer reduced pricing from the regulated tariffs offered to Non-Contestable consumers. We can also offer different plans than what consumers are currently being offered, and this is the reason why EMA liberalized NEMS, to give the customer more choice, more flexibility, and most importantly, more savings.
At RDP we fully believe in saving our customers money, it’s just what we do. We have designed 3 different plan types to suit different lifestyles and business needs, and each one of our plans is designed to save our customers the most money to fit their tailored needs. It sounds strange but at RDP we want our consumers to use as little electricity as possible, because it’s in our DNA as demand management specialists; it’s best for the consumer, it’s best for the environment, and it’s best for Singapore.
The best plans for you
Find out what’s the right plan for your needs. With Red Dot Power, there is no one size fits all. We’re here to make your life easier.
Enjoy consistent savings on your bill. RDP offers you fixed discounts off the regulated tariff throughout your contract period. Giving you the comfort of knowing that you are enjoying savings every month no matter what the regulated tariff is.
At a special rate, your power charges for each month are fixed for the term of the contract. Regardless of any pricing changes, we guarantee you that you pay the same price every month.
Stay ahead of the game with competitive electricity rates. You get the lowest rates possible set quarterly. Choose if you need your plan for day or night so that those who use more electricity at night can benefit from lower nighttime prices and vice versa. This is the plan for you if your business is not the usual 9am to 5pm. What’s more, you can change from eQ pricing to eSave at any time, terms and conditions apply.
Below eQ and eQ+ rates are valid until
March 31, 2018:
DAY 15.98 cents/kWh
NIGHT 14.98 cents/kWh
DAY 16.68 cents/kWh
NIGHT 14.98 cents/kWh
Rates for Q2 2018 will be updated in
HOW DOES ELECTRICITY PRICING WORK?
Electricity pricing in Singapore is based upon a tariff model. We are familiar with the regulated tariff distributed by SP Services. This tariff consists of four parts; the first three are Market Administration Fee, MSS Fee and Network costs which are set at fixed amounts by the regular and must be paid by all customers. RDP ‘passes through’ these fees to the customer exactly as received. The fourth constituent of the tariff is energy costs, this is where RDP can help save by offering lower rates for energy than the quarterly fixed regulated tariff.
ARE YOU ELIGIBLE?
Since 2001, the Energy Market Authority has progressively opened the retail electricity market to competition to give consumers more options to manage their energy cost. Instead of buying electricity at the regulated tariff from SP Services Limited (SPS), eligible consumers can choose to buy electricity from electricity retailers under customised price plans or from the wholesale electricity market at prices that fluctuates every half-hour. Currently, a commercial or industrial consumer with an average monthly electricity consumption of at least 2,000 kWh (the monthly electricity bill is about $400) is eligible to become contestable.