Since the introduction of the Open Electricity Market (OEM) in 2018, residential consumers are able to enjoy more choices and flexibility when buying electricity. Regardless of who consumers buy their electricity from, the electricity supply will remain the same. This is because SP Group will continue to operate the national power grid and deliver electricity to everyone.
Why Are Electricity Prices on the Rise?
The world has been facing an energy crunch since September 2021. Global gas prices have increased significantly due to high demand and tight gas supply. The conflict in Ukraine has exacerbated the risk of disruptions in gas and oil supply.
Around 95% of Singapore’s electricity is generated from imported natural gas. The surge in global energy prices will lead to substantially higher costs of electricity generation. The impact is most immediate on the 1% of consumers who buy electricity directly from the Singapore Wholesale Electricity Market (SWEM). However, over time, most consumers will have to face higher electricity bills when they renew their electricity contracts, or in the case of regulated tariff consumers, during the quarterly tariff adjustments.
Read the latest explainer on electricity prices and global market developments
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