New rating system shows more than 8 in 10 happy with services of new electricity retailers

SINGAPORE — Consumers who have switched providers under Singapore’s recently-liberalised retail electricity market are generally upbeat about the experience, based on a survey done by the Energy Market Authority (EMA).

The survey found that among the 12 retailers in the open electricity market, Ohm Energy, Sunseap Energy and Tuas Power got the biggest tick of approval from consumers — each scoring four out of five stars on a new customer-satisfaction scale drawn up by EMA.

More than eight in 10 consumers — 85 per cent — also reported being happy with the services provided by the new electricity retailers, said the EMA in a media release on Tuesday (Oct 15).

HOW THE SURVEY WAS DONE

The EMA surveyed more than 10,000 households who switched to an electricity retailer between November last year and February as the electricity market was being progressively opened up across the island.

Each retailer was then rated with an overall score out of five stars based on the responses that consumers gave to nine questions.

The questions included: How accurately the retailers presented their offers, how adequately they addressed questions, and also whether the consumers were aware of terms and conditions such as late-payment charges and the types of plans available.

The ratings can be found on the open electricity market website and will be updated every six months, said the EMA.

HOW THE 12 RETAILERS FARED

• 5 stars: No provider

• 4 stars: Ohm Energy, Sunseap Energy and Tuas Power

• 3.5 stars: Geneco, Keppel Electric, PacificLight Energy, Sembcorp and Senoko

• 3 stars: Best Electricity Supply, iSwitch

*insufficient survey responses: Diamond Electric, Union Power

CONSUMERS GENERALLY AWARE

The survey results also showed that residential consumers were generally aware of the electricity rates, contract start and end dates, as well as details of their security deposit.

However, they paid less attention to other contractual terms such as late-payment charges and early termination charges.

As part of the contracting process, EMA said it requires each retailer to ensure that consumers read and acknowledge the fact sheet, which includes important details such as electricity rates and other charges.

Almost all the respondents — 98 per cent — said they found the process of switching to a retailer “easy”. When asked if their retailers had presented their offers accurately, almost as many — 94 per cent — said “yes”.

FEWER THAN HALF OF RESIDENTIAL CONSUMERS MADE THE SWITCH

The top three OEM retailers, based on market share of residential consumers, are Keppel Electric (27 per cent), Geneco (21 per cent) and iSwitch (13 per cent).

The EMA said that those who switched enjoyed savings of 20 to 30 per cent compared to the regulated tariff.

About 40 per cent of residential consumers had switched to a new electricity retailer as of the end of August, the authority added.

WHY IT MATTERS

Consumers can use the new rating system — as well as price comparisons — to make informed decisions when choosing their retailers.

EMA chief executive Ngiam Shih Chun said: “Apart from price, we encourage consumers to consider the satisfaction ratings for retailers in their decision-making.”

The EMA also hopes that the rating system will “motivate” retailers to continually improve their products and services for the benefit of consumers.

The EMA has been progressively opening up the electricity market to promote greater competition since 2001. The energy market was opened to the final batch of household consumers in May this year.

However, one electricity retailer, Red Dot Power, which was part of the initial soft launch for the open electricity market (OEM) in Jurong, had halted its services earlier this year citing “financial challenges”. At the time the firm exited the market, it had reportedly signed up about 3,000 customers, including 120 households.

Its departure sparked concerns among consumers of retailers pulling out with little notice, but Senior Parliamentary Secretary for Trade and Industry Tan Wu Meng assured consumers that when retailers exit the market, they must pass on their customers to another seller with the same terms and conditions.

EMA 'ENCOURAGED' BY SWITCHING RATE

In a statement on Tuesday, EMA said that the "main objective of introducing the Open Electricity Market (OEM) is to provide consumers with choice and flexibility when buying electricity".

"It is not compulsory for consumers to switch to a retailer and there is no deadline to do so," a spokesperson added.

"The switch rate of 40 per cent for Singapore in our first year is encouraging, and continues to increase every week. It is also higher than the single-digit annual switch rates seen in other countries with open and competitive markets. We hope consumers will consider the choices available now, be it to purchase a price plan that offers savings, green energy alternatives or to enjoy the benefits of bundled products and services."