Singapore’s record-high electricity tariff drives retailers to roll out discounts, but price war unlikely
Firms expected to be prudent amid ongoing volatility, with lessons learnt from business failures in the 2021 crisis
[SINGAPORE] Singapore’s electricity retailers are out to attract new customers with promotions on fixed-price plans – as consumers seek cost certainty following the 17 per cent surge in the electricity tariff for July to September, marking a record high for the Republic.
However, retailers are still cautious about managing their exposure to energy prices, with the uncertainty of the Middle East conflict. This makes a price war unlikely, analysts told The Business Times. Greater safeguards also lower the chances of retailers exiting the market, as seen during the 2021 global gas crisis.
Players have been quick to roll out promotions in recent weeks – offering prices as much as 20 per cent lower than the latest regulated tariff of S$0.3478 per kilowatt-hour (kWh), including goods and services tax.
