Many Open Electricity Market Retailers folding up

[Chase]

Global power cost surge wrecks Singapore's electricity market​

https://www.reuters.com/business/en...cks-singapores-electricity-market-2021-10-18/

For retail electricity consumers in Singapore, higher prices and less competition look likely. "In terms of retail choice for customers, it will be greatly reduced, as more electricity retailers exit the market, said Lee at IHS.

"Retail prices in Singapore have been on the rise, and this can already be seen from the offers from retailers currently... The discount off tariff have declined from 20+% to less than 10% now, and the fixed price tariffs have increased from 17 cents/kWh to 25 cents/kWh."

 

[Chase]

Best Electricity becomes latest power provider to quit Singapore market​

https://www.channelnewsasia.com/sin...-quits-singapore-energy-market-prices-2254926

 

[Chase]

Lights out for some electricity retailers in Singapore​

https://www.channelnewsasia.com/sin...xit-singapore-what-it-means-consumers-2253931

SINGAPORE: Citing unfavourable market conditions, three electricity retailers have abruptly thrown in the towel in quick succession over the past week, sending shockwaves across Singapore’s electricity market. Industry experts reckoned it would not be a surprise if more retailers decide to head for the exit given the “perfect storm” in the global and domestic energy markets.

Daily trading reports by the Energy Market Company – the operator of Singapore’s wholesale electricity market – provide a sense of this market volatility.

From Oct 3 to Oct 16, the daily average Uniform Singapore Energy Price (USEP) traded between S$121.10 to S$1,821.60 per megawatt hour (MWh). Intra-day figures showed an even wilder ride, with the USEP on Oct 14, for instance, peaking at S$3811.16/MWh and going as low as S$267.82/MWh.

The USEP is the price paid by electricity retailers for their purchases in the wholesale market.

Even before this month, the USEP has shot through the roof on several occasions. One such spike occurred between Jul 26 and 29 when prices averaged at S$418/MWh, nearly three times more than the level seen in the preceding week.

 

[Chase]

https://asia.nikkei.com/Business/Energy/Surging-fuel-prices-shake-Singapore-s-electricity-market

 

[Loofydralb]

Nothing happens for no reason.

Its all smoke and mirrors and will end up benefitting the chosen ones.

 

[Chase]

Another three vendors serving businesses threw in the towel.

UGS Energy, SilverCloud Energy and Value Energy
https://www.businesstimes.com.sg/en...-retailer-ugs-energy-is-the-latest-to-bow-out

 

[Confuseous]

Is it worthwhile to switch back to SP?
Are their rates competitive still?

 

[Chase]

Is it worthwhile to switch back to SP?
Are their rates competitive still?

While we mainly use Natural Gas to generate electricity in Singapore, Sp rates are correlated to oil prices.

SP rates will increase in the next two quarters. Beyond that, is anyone's guess.

Open Electricity Market Retailers no longer give steep discounts. The main objective of signing up with them is just to lock-in at current rates. If you think Russia will invade Kiev and send oil prices beyond US$100 for 2 years, then you should get fixed rates with them for 2-years.

If you think oil prices will drop going forward because Putin is not embarking on full scale war and a recession is coming (drop in demand for oil), you should just stick with SP and not lock-in any rates with the Open Electricity Market Retailers.

Lastly, if you are planning to stop using electricity in a particular premise in 2022 (eg. shut down a warehouse), I think it is quite pointless to sign a 1-3 years contract with them. Consumers don't get much compensation when open market retailers break contracts but you are legally liable to compensate them when you do so.

 

[mojito]

Suckers fell prey to PAP con job.

 

[Confuseous]

While we mainly use Natural Gas to generate electricity in Singapore, Sp rates are correlated to oil prices.

SP rates will increase in the next two quarters. Beyond that, is anyone's guess.

Open Electricity Market Retailers no longer give steep discounts. The main objective of signing up with them is just to lock-in at current rates. If you think Russia will invade Kiev and send oil prices beyond US$100 for 2 years, then you should get fixed rates with them for 2-years.

If you think oil prices will drop going forward because Putin is not embarking on full scale war and a recession is coming (drop in demand for oil), you should just stick with SP and not lock-in any rates with the Open Electricity Market Retailers.

Lastly, if you are planning to stop using electricity in a particular premise in 2022 (eg. shut down a warehouse), I think it is quite pointless to sign a 1-3 years contract with them. Consumers don't get much compensation when open market retailers break contracts but you are legally liable to compensate them when you do so.

Good thoughts. Thanks.