Rising Natural Gas Prices Lead to Exit of Multiple Energy Providers, Leaving Consumers Facing Potential Cost Increases
In recent days, Singapore’s electricity market has been shaken as three electricity retailers have announced their decision to exit. On October 13, iSwitch confirmed its exit, set for November 11, 2021. Shortly after, Ohm Energy followed suit on October 15, and on October 19, Best Electricity became the third to pull out.
Additionally, Union Power, though remaining in the market, is closing accounts for approximately 850 customers while maintaining a portfolio of 20,000 accounts.
The main factor driving these closures is the unfavorable market conditions caused by a sharp rise in global natural gas prices. With the majority of Singapore’s electricity sourced from natural gas, these retailers have struggled to cope with escalating costs, forcing them to shut down operations. This disruption signals a potential rise in electricity prices for consumers, as the market continues to be affected by the broader global energy crisis.
