SINGAPORE: Energy provider Red Dot Power has decided to stop providing retail electricity services, and is exiting the market with effect from Friday (Jan 4).
In a notice on its website dated Jan 3, the company cited financial challenges for its decision.
"It has been a financially challenging period for Red Dot Power and we have decided to cease serving all our customers for retail electricity services," it said.
Customers' accounts will remain under Red Dot until Jan 6, and will then be transferred to SP Group the next day with "no disruption to your electricity supply", said the company.
Red Dot was among retailers that participated in last April's pilot launch of the Open Electricity Market - an initiative to open up the power market to competition.
It was one of the retailers that opted out of a nationwide launch last November, which saw the initiative being rolled out across Singapore in phases.
With its exit, there are still more than 10 electricity retailers in Singapore.
Those who want to switch to another retailer can do so after the transfer of their account to SP Group, Red Dot said.
Customers will be not be required to pay any early contract termination charges to Red Dot, and security deposits will also be held by SP Group after the account transfer.
The company added that it was working closely with the Energy Market Authority and SP Group to ensure a smooth transfer.
It said it would continue to operate in other business segments such as solar, battery storage and electric vehicle charging stations.