Dear readers, today’s The Business Times reported that Ohm Energy and Best Electricity are considering ceasing or selling their electricity retail operations in Singapore. It was also reported that another retailer is also believed to be contemplating making an exit from the Open Electricity Market (OEM). The report of the aforementioned three electricity retailers possibly exiting came on the heels of the announcement that iSwitch, Singapore’s largest independent electricity retailer, is exiting the OEM scene.
I understood that Ohm Energy and Best Electricity are relatively smaller independent retailers with collectively fewer than 50,000 household accounts. The possible exit of the two retailers underscored my point in the post I shared about iSwitch Energy switching off that size of market player does matter, at least in my opinion when it comes to choosing an electricity retailer. This is why I took quite a long time to decide among the many new electricity retailers on just which retailer to choose. This is especially so when the whole concept of the OEM is so new to Singaporeans and to complicate choices, there are so many goodies, promotions and discounts tossed out by the electricity retails when they were marketing to the public extensively.
Among so many parameters to choose from, I have decided on one: market size of the OEM player that is important. To me, promotions, discounts, goodies are just once-off and not important. What is important to me is that I can continue to obtain good and competitive OEM packages from my retailer that I chose and the probability of having these will increase if the OEM player has a certain market size and some clout. This will ensure that it has the resources to sustain in the competitive OEM market.
It is similar to the Singapore Stocks Market which is comparatively smaller compared to other regional bourses. Hence, Straits Times Index (STI) constituent stocks, which are the among the largest market cap here generally make for safer picks: like DBS, OCBC and UOB stocks.
I said “generally” as from time to time, some STI stocks also failed investors, take example Noble Group stock.
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