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31 Dec 2019
Energy Market Authority (EMA)
Feedback View - 405
Wasteful to create retail electricity market

It is wasteful to create a retail electricity market. 

The consumers are asked to select the retailer and to decide on a fixed or floating tariff plan and also the duration of the plan.

On expiry of the plan, the consumers are asked to renew the plan or to choose another retailer. 

The retailers have to keep their records of the electricity contracts. Some retailers mess up their computer systems and lose track of their contracts.

Some of their marketing executives sign up for contracts or renewals and did not update the records. This left the consumers in a lurch. They do not know if they have valid contracts. 

Consumers are not speculators. They do not want to speculate on the price of electricity. They only want to have electricity at the lowest possible cost. It is an utility that they need to have. They cannot decide to forgo electricity.

Opening up of the retail energy market is wasteful. It creates a lot of confusion and unproductive work. 

When there is a change of retailer, there is a need to change the banking and billing arrangement. This additional work involves the bank as well.

Some consumers do not know how to go about getting a contract to enjoy lower rates. They continue to pay the "rip off" rate charged by SP Services.

What is the alternative? Ask SP Services to reduce the electricity rates and forget about all these complicated speculation. An international comparison should our electricity rates to be higher than most advanced countries. There is justification to reduce the rates to an international competitive level.

Tan Kin Lian

Vote - is the retail electricity market a wasteful exercise?



 


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