Why are electricity providers in Singapore exiting the scene?

Singapore

ON Oct 13, Singapore's fourth-largest electricity retailer iSwitch Energy said it would cease retail operations from next month. iSwitch had a market share of some 13 per cent of Singapore's Open Electricity Market (OEM) as at end-April this year.

Two days later, Ohm Energy also headed for the exit. At least two other retailers for the household segment are contemplating doing the same.

The Business Times breaks down why this is happening, and the broader implications for Singapore's electricity scene.

What is the open electricity market?

Singapore's opening up of the retail electricity market has been a gradual one that first began in 2001 with larger businesses.

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The OEM is an initiative by the Energy Market Authority (EMA) that gives consumers a choice of their electricity provider. This initiative was progressively rolled out nationwide from Nov…