It now only holds 30% of the market.
This chart from OCBC Investment Research shows that Singapore Power (SP) Services Ltd's market share for electricity retail has been gradually decreasing from 2005 to 2016.
In 2005, the electricity provider still held 41.7% of the market, but in 2016, its share of the market dropped to 30.1%. It still remains the dominant electricity retailer in Singapore, however.
Meanwhile, the market shares of the other major electricity retailers like Tuas Power, Senoko Energy, Seraya Energy, Keppel Electric, and Sembcorp Power have fluctuated throughout the time period. PacificLight Energy started to take up sizeable chunks of the market in 2014.
In 2016, new retailers have emerged, albeit their market share is still small. Hyflux Energy took up 1.6%, Red Dot Power took up 0.8%, I Switch took up 0.3%, Sunseap Energy took up 0.2%, whilst Best Electricity Supply took up 0.1%.
The emergence of these new retailers followed the launch of the open energy market to businesses. In the open market, firms are now allowed to select the electricity retailer they based on their needs. There are currently 31 firms licensed to buy electricity, the Energy Market Authority (EMA) revealed.
The liberalisation of the electricity market in the second half of 2018 will allow the remaining 1.3 million households in Singapore to choose their provider. This has not only lured traditional electricity providers as some large companies like telcos and banks have already started to tap into the market.
Though there is the possibility of irrational competition in the initial phase of market liberalization as well as promotional spending required which could pressure margins
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