Singapore electricity provider quits market, pressure on others

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According to company sources, at least three others have stopped accepting new clients amid rocketing wholesale energy prices.

A surge in global wholesale gas prices has multiplied in recent months as production and transit problems have lowered gas supply just as demand took off in a post-pandemic economic recovery.

Elsewhere in the sector, Diamond Electric, Best Electricity Supply and Ohm Energy have stopped accepting new customers with Diamond Electric in the process of handing over existing term contracts to another utility provider, company sources told Reuters. "Add the failure of the once well-designed market-making scheme and things become untenable for many." Open Electricity Market website shows only 8 out of the 12 existing retailers offering plans for consumers.

The fuel cost component for each quarter is calculated using the average of daily natural gas prices in the first two-and-a-half month period in the preceding quarter while the non fuel-cost is calculated based on the cost of generating and delivering electricity to homes.

 

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