Scheme to allow households to buy electricity from private retailers
Arlina Arshad
Thu, Oct 18, 2007
SINGAPORE'S Energy Market Authority (EMA) is testing a scheme to allow 1.2 million households and small businesses to buy electricity directly from private retailers instead of getting it from Singapore Power's SP Services.
With the Electricity Vending System, they can get their electricity supply from the five retailers - Keppel Electric, SembCorp Power, Tuas Power Supply, Senoko Energy Supply, and Seraya Energy.
Also, since electricity prices will differ throughout the day when the new scheme kicks in, households can better manage their electricity usage. Currently, they pay a flat regulated tariff charged by SP Services.
'They may want to use electricity during non-peak than peak hours to save money since it's cheaper during that time,' said EMA chief executive Khoo Chin Hean at a press conference on Thursday.
He was not able to say how much costs will be saved as testing is still preliminary.
For small consumers, the mode of paying for electricity will also change under the new scheme.
Instead of opening an account and waiting for the bill to be posted to their home, they can buy their electricity packages at various online payment channels such as internet banking, ATM machines, and convenience stores, and top up when their credit runs out.
Mr Khoo said that SP Services will continue to be a retailer.
New smart meters that take readings every 30 minutes will be installed in 200 households in Marine Crescent and Telok Kurau from next month. Electricity consumption data will be collated and transmitted electronically to SP Services.
Another 1,000 households islandwide will be selected for the feasibility test.
It will cost $3 million to carry out the 25-month testing, which is expected to be completed in mid-2009.
Mr Khoo noted that 're-engineering business process' will cut supporting infrastructure costs including logistics, and manpower to read the meters manually.
EMA remains the regulator, stressed Mr Khoo.
SP Services provides electricity supply, and support services and open account, reading meters and billing. PowerGrid, amongs others, installs and maintains cable network and meters.
Said Mr Khoo: 'At the end of the day, Powergrid still owns and maintains the meters. We will put up guidelines to ensure there is fair play among the electricity retailers, and consumers can switch anytime.'
