Since the electricity market was gradually liberalised in 2001, businesses have been able to buy electricity from retailers under customised price plans to suit their needs. This offers them flexibility and options instead of buying electricity at the regulated tariff from SP Services.
Among those who have benefited is SMD Manufacturing’s Managing Director Frank Chua. He shared that “it gives an opportunity for us to look for an alternative [electricity retailer]. We are a small consumer in comparison with the big players” and “any savings made is crucial to our survival”.
The benefits of increased market competition, such as a greater choice of electricity plans like green power packages and bundled plans with energy efficiency solutions, will be extended to the remaining 1.3 million small businesses and households. This will take place in the second half of 2018.
They will then be able to join the current pool of 33,000 businesses (with a monthly electricity bill size of about $450) that now enjoy these retail options. These include low-energy users, such as coffee shops and kindergartens, which can choose to shop around for the best electricity deal; similar to choosing a mobile price plan.