New Electricity Providers Can Charge Less, Why SP Cannot Do it?

The recent move by the authorities to open up the electricity market to Singaporeans and Singapore residents have thrown up more questions than answers. With the new Open Electricity market, consumers now have many electricity providers that they can choose from.

And naturally, for these electricity providers to entice new customers to take on their brand, their offer features ridiculously cheaper prices, some even promising a 30% savings on their current electricity bills. The question is, if these new electricity providers in the market can offer cheaper prices, why did the incumbent Singapore Power charging so expensively for the use of electricity? Was it because they monopolised the market back then, and they can charge whatever they want, because Singaporeans have to use electricity, and we have no choice but to pay the high price?

Can someone come outright and say why these new entries can afford to offer cheaper prices? Will we pay the price further down the road, as this is just an entry gimmick? Or have we really been overcharged by Singapore Power all these while?

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