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Why can't large consumers buy electricity at the regulated tariff from SP Group?
Electricity offered through the regulated tariff is purchased by SP through existing vesting contracts with gencos. There is a limited quantity of such electricity and we have reserved them for households and small business consumers, who traditionally do not have the bargaining power to negotiate for better retail prices.
Allowing large consumers to switch to the regulated tariff means that SP Group will need to contract for additional supply with gencos at higher prices, and/or buy additional supply of electricity from the Singapore Wholesale Electricity Market at the prevailing Uniform Singapore Energy Price, which will cause the regulated tariff to rise.
Households and small consumers would have to bear the costs of price stability for large consumers. Instead, EMA has been engaging generation companies (gencos) to try to plug the shortfall in retail contracts as well as work with the gencos to engage companies when these additional retail contracts become available.