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Why do some retailers choose to exit the retail electricity market?
In an open and liberalised electricity market, retailers may exit the market or the consolidation of players could occur due to market competition. The global energy crunch in late 2021 resulted in high and volatile wholesale electricity prices in the Singapore Wholesale Electricity Market, which spilled over to the electricity retail market. As a result, independent retailers were affected, which led to some of them exiting the market or prematurely terminated consumer contracts.
Below is the default arrangement for consumers whose retailers have decided to exit the market:
Households and small businesses with an average monthly consumption of less than 4 MWh that are transferred to SP Group will buy electricity at the regulated tariff.
Large businesses with an average monthly consumption above 4MWh will be automatically transferred to SP Group to buy electricity at the wholesale electricity price upon the exit of your retailer.
You are advised to approach other retailers directly to find a price plan that best suits their needs before the transfer and are able to transfer out of SP Group at any time. However, you should take note that retail contracts will likely be at a price higher than the previous contract, which is dependent on the prevailing market conditions.