COVID-19 have affected the ways we live in more ways than one. From the travel restrictions to the obligatory accessory, we could not hate COVID-19 enough.
This time, there’s another change thanks to COVID-19: our electricity supply.
Energy Market Authority Assures Consumers That Electricity Retailers Folding Won’t Affect Their Electricity Supply
In the past two weeks, the Singapore Wholesale Electricity Market (SEWM) has been facing challenges from the volatile market conditions and surging fuel costs.
Due to the global rise in prices for spot or real-time liquefied natural gas (LNG) and several other factors, some of the retailers had to exit the open electricity market (OEM).
Just this week alone, both iSwitch and Ohm Energy announced that they’re closing down.
Best Electricity Supply and Diamond Electric have also stopped accepting new customers.
Retailers ceasing their operations entirely will have their customers transferred to SP Group if they are unable to find another retailer to take on their customers under the same contractual terms and conditions.
They will also not be allowed to charge the customers an early termination fee. According to the Energy Market Authority (EMA), the retailers are required to refund any remaining security deposit after offsetting outstanding charges for household consumers.
There will also be no disruption to all customers’ electricity supply. That means you can watch your shows in peace without worrying about the sudden blackout.
What Causes the Volatility?
In case you are unaware, Singapore’s wholesale electricity market prices are determined every half an hour depending on the demand and supply conditions. That means, things can go up and down quickly.
But what causes the huge volatility in the past two weeks? Here are the factors:
- Spike in LNG globally
- Increased in global demand for natural gas
- A drop in natural gas and coal production
- Reduction in supply of piped natural gas from Indonesia
Additionally, lockdowns around the world and working from home in Singapore does not help in the reduction of electricity since we all have to work and cook from home.
As of 12 Oct 2021, a new system peak demand of 7,667MW was recorded in Singapore. That is about 2,190,571 air conditioners on at full blast at the same time.
Will We as a Consumer be Affected?
Those that are on the fixed price plans, DOT, or the regulated tariff will not be affected. However, you may see an increase in electricity prices during your contract renewal.
TL;DR Watch less Squid Game and use the handheld fan instead of the air condition.
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Featured Image: Andrey_Popov/ shutterstock.com
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