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Published on: 22/04/2019

A commodity that often goes unnoticed, electricity is like the silent hero powering our daily lives—from the minute we get out of bed to the time we hit the hay. And unless we get hit by a power outage, we often don’t realise how challenging our lives will be without it.

That being said, have you ever wondered how electricity gets distributed to us? Here’s a brief summary:

 

Electricity Generation and Distribution

1. Electrons are generated by power generation companies.

2. From the generation companies, these electrons get exported to the national grid.

3. Our grid operator, SP PowerGrid, will then manage the physical network of cables also known as the grid, and the transmission of power to substations.

4. Through the grid, electrons will eventually flow to individual meter points in households.

 

Did You Know?

Approximately 95% of Singapore’s electricity is generated from imported natural gas. In recent years, the Government has also started exploring alternative sources of energy, such as solar.

 

How Do I Know My Network is Reliable?

Since the soft launch of the Open Electricity Market in April last year, switch rate has been relatively lower than expected, considering the amount of savings consumers could achieve simply by switching to an electricity retailer. Here’s a breakdown of the numbers, as reported by Channel News Asia.

Switch Rate


The reason is simple. Just like buying an iPhone, the phone quality and functionalities remain the same regardless of where you choose to buy your phone from—be it Courts, Challenger, Singtel, or even directly from Apple. That means the only cut you’ll experience…is the cut in your power bill! We believe part of this resistance is due to concerns over network reliability. If you are one of the majority of eligible customers who have yet to switch, rest assured that there will be no disruption to your power supply.

Some of you may also wonder: if electricity is generated by power generation companies and distributed via the national grid, why does SP’s tariff differ from retailer’s prices? Well, that is a different topic altogether, and we will be covering it in our next article. So stay tuned!

 

Electrify is Singapore’s first retail electricity marketplace, seeking to help businesses and household consumers source and compare electricity plans from multiple retailers.

If you’re looking for electricity plans for your company, send us your bill here and our energy consultants will get back to you with a few recommended plans. For household owners, log on to ELECTRIFY.SG now to compare and choose your preferred plan.

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