Right from the manufacturers, shoes, clothes, petrol, groceries, or other goods or items are carried on to the wholesalers. The wholesalers distribute all these merchandise to the retailers, and that is where, as a consumer you purchase clothes or shoes (at a department store), groceries as well as petrol. What about the electricity retailer Singapore? Do you go to the electricity retailer for buying or collecting electricity?
No not at all, because electricity retailer doesn’t distribute electricity personally to the consumers. The property gets electricity source from the power plant generators and transmission networks and distribution networks to the consumers. The electricity retailer functions their business just by sending the bills packaged with various tariffs, and locking the customers in contract. The electricity retailers also compete with each other, for bargaining with the consumers the attractive deals for the utility and the billing contract. So, in simple terms, electricity retailer is one “middle man” between the energy distributors and the consumers.
Are Electricity Retailers Essential?
Economic model generally includes retailers, in turn will rely on the consumers purchasing electricity for sustaining the business. Suppose retailers sell many more contracts to consumers, this means more of profit to them, as well as funds and demands for the power stations for building generators and poles or wires for the distributors for installing to transport the electrons, which produce electricity.
The – mentioned “standard” model is changing. Many commercial and residential property owners are producing their electricity, for this reason demand from distributors now are declining as well as energy efficiency is on the premium in Singapore.