Ohm Energy is the latest to switch off on Singapore's electricity retail ops

OHM Energy has become the second player to call it quits this week on Singapore's electricity retail business, as elevated energy prices force businesses to close.

"It is our deepest regret to inform you that Ohm is exiting the retail electricity market with effect from Oct 15... It is with sadness that we exit ... and part ways with you," said the retailer in a note to customers on Friday.

Ohm Energy's move to throw in the towel comes two days after iSwitch Energy, Singapore's largest independent retailer, said it will cease its retail operations on Nov 11.

The Business Times understands that Ohm Energy, at its peak, held some 31,000 household accounts, but has lost roughly 4,000 customers in recent months as it was no longer able to offer competitively-priced packages.

"We are aware that your contract is at a lower value than the current regulated tariff. While not a requirement on our part, but as a token of appreciation for your support, we would like to present you with an ex-gratia payment, which you can expect on your final bill with us," Ohm Energy continued.

Unusual spikes in spot electricity prices since July and the inability to hedge - given the futures market's lack of depth - have hurt business margins and hampered independent retailers' ability to offer electricity plans at attractive rates to compete.

Two other retailers, Best Electricity and Diamond Electric, were earlier reported by BT to be mulling exits, but their fate is still unknown.

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