This week, iSwitch became the first electricity retailer to exit from the electricity market. About 90000 households may face 20% higher electricity bills as a result. 3 days later, Ohm Energy followed suit. It has been reported that 2 more companies are expected to exit.
Electricity retailers can charge cheaper electricity bills to households than SP Group to Singaporeans because they buy cheaper electricity from the wholesale market. What many Singaporeans are unaware is that we can buy cheap electricity directly ourselves from the wholesale market through SP Wholesale. So, why not simply bypass the electricity retailers who act as middlemen and buy direct from SP Wholesale? Wouldn't that result in a cheaper price for all of us?
The problem with buying from the wholesale market is the prices can fluctuate like the stock market. Cheap today can mean expensive tomorrow. The electricity retailers provide value to households by shouldering this risk on behalf of...