Recently, electricity retailer iSwitch announced its exit from the open electricity market (OEM) here in Singapore. They did not get into the specifics but cited current electricity market conditions as a reason.
Now another electricity retailer is following suit, as Ohm Energy announced their exit from the market too.
They explained that due to the unstable nature of the market, the pricing of their plans had become unsustainable.
Before their exit, Ohm Energy will be handing out an ex-gratia payment to their current customers and transferring their accounts to SP Group.
The transfer will come into effect from 20 Oct.
Besides the announcement on their website, Ohm Energy had also sent out letters to customers regarding their closure.
A Facebook user posted the letter online on Friday (15 Oct), providing more details than what Ohm Energy disclosed to the general public.
The notice explains that the volatile electricity market has seen their electricity plans pricing become unsustainable.
Acknowledging that their pricing plans are lower than that of the Regulated Tariff, they decided to provide ex-gratia payments as a token of appreciation to their customers.
The one-time payment will be reflected in customers’ final bills.
According to TODAY Online, Ohm Energy had electricity plans that sold electricity at a fixed rate of $0.2194/kWh.
In comparison, SP Group charges its customers $0.2580/kWh from 1 Oct to 31 Dec.
In light of their exit, the accounts of Ohm Energy’s 27,000 strong customer base will be transferred to SP Group. Customers will then be able to choose whether to stay or find a different retailer.
In the meantime, customers need not worry about an electricity outage. Ohm Energy assures that there will be no disruption to the electric supply.
Another retailer has bitten the dust amidst the rise in electricity prices. Hopefully, the remaining retailers in the market will find a way to cope while ensuring their workers’ job security.
As for the customers, we hope that the transition will be smooth for them.
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Featured image adapted from Stefan on Flickr.
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