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 is 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 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 us, except you are very likely to pay less.
Below eQ and eQ+ rates are valid for Q1 2019:
eQ (For Q1 2019)
DAY 18.83 cents/kWh
NIGHT* 17.70 cents/kWh
eQ+ (For Q1 2019)
DAY 18.83 cents/kWh
NIGHT* 17.50 cents/kWh
*Night rates is valid from 7pm to 7am next morning.
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 regulators and must be paid by all customers. We ‘passes through’ these fees to the customer exactly as received. The fourth constituent of the tariff is energy costs, this is where Red Dot Power can help you 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.