Hyflux Energy halts participation in Open Electricity Market soft launch at Jurong

SINGAPORE — Nearly three months into the soft launch of the Open Electricity Market, water technology giant Hyflux's electricity retail arm has quietly pulled out "until further notice".

Citing competitive reasons, Hyflux Energy declined to say how many households in Jurong involved in the soft launch are affected, but said the consumers continue to be served.

And despite its withdrawal, a spokesperson said it intends to participate in the wider rollout of the Open Electricity Market, which will allow all households in Singapore to switch electricity retailers.

"Hyflux Energy believes it is in a position to offer competitive all-inclusive rates with no hidden charges or adjustments," it said, adding that it is still selling electricity to commercial and industrial customers.

According to its website, Hyflux Energy's supply is derived from the Tuaspring Integrated Water and Power Project, which comprises a desalination plant and a 411 megawatt capacity combined cycle gas turbine power plant.

Along with Hyflux, Tuaspring was one of five Hyflux subsidiaries to be granted a six-month reprieve from creditors by the High Court last week. The other subsidiaries are Hydrochem, Hyflux Engineering, Hyflux Membrane Manufacturing, and Hyflux Innovation Centre. Hyflux and its subsidiaries have chalked up about S$1.84 billion in bank debt, and the one-time poster child of Singapore entrepreneurship is trying to secure about S$200 million in rescue financing.

It is also in discussion with four parties on a possible sale of Tuaspring.

But Hyflux Energy said it is not involved in the "restructuring exercise" currently being undertaken by some entities within the Hyflux Group. "We had taken the decision to voluntarily withdraw from the soft launch of the Open Electricity Market in Jurong till further notice," said a spokesperson.

The soft launch of the Open Electricity Market – the Government's effort to inject more competition into the retail electricity market – from April involved a total of 108,000 households and 9,500 business accounts in Jurong. Later this year, it will be extended to the rest of Singapore, making an extra 1.3 million accounts, comprising mainly households, served by SP Group up for grabs.

Hyflux Energy's withdrawal brings the number of participating electricity retailers to 13 – a group that includes PacificLight, which is serving close to 4,000 households to date; iSwitch, which had received more than 2,000 sign-ups; and Sunseap Group, which has joined forces with StarHub.

On Friday, SP Group announced that electricity tariffs for the next three months will rise by 6.9 per cent in the highest and third consecutive rise this year, on the back of higher natural gas prices.

Between July 1 and Sept 30, SP Group's residential customers will pay 23.65 cents per kWh.

This translates to an average four-room Housing and Development Board household paying nearly S$6 more for electricity per month, or about S$88.42.

The Energy Market Authority told TODAY the response to the soft launch of the Open Electricity Market "has been encouraging" but declined to disclose figures.

Consumers may compare various price plans at http://compare.openelectricitymarket.sg.