Liberalisation of Energy Market in 2018

Contributor, Faith Leong, shared some concerns on the announcement that the Republic's electricity market will be fully liberalised in 2018. She called for Singapore to retain the practice of having a core electricity provider so as to ensure market stability. Energy Market Authority's (EMA) reply to Faith's feedback is appended below. 

Dear Faith

Thank you for your feedback on the liberalisation of the electricity market in Singapore.  

The Energy Market Authority (EMA) would like to clarify that the power plants that generate electricity to meet our electricity demand are physically located in Singapore though some of them are owned by foreign companies. All the power generation companies are licensed by EMA. EMA maintains regulatory oversight over these power generation companies, to ensure reliable and secure electricity supply to consumers. 

The power generation companies compete among themselves to generate and sell electricity at the electricity wholesale market. Market competition has put downward pressure on electricity prices. The electricity generated by these companies is transmitted through the electricity grid to consumers. The electricity grid is owned by Singapore Power. To ensure Singapore Power provides non-discriminatory transmission service to all the power generation companies competing in the market, Singapore Power does not own any of the power generation companies. 

EMA has since 2001 progressively opened up the electricity retail market to competition so as to give consumers choice in their electricity purchases. Currently non-residential consumers whose average monthly electricity consumption is 2,000 kWh and above (about $450 monthly electricity bill) are eligible to choose their electricity supplier. EMA will fully open up the electricity retail market to competition in 2H 2018 to benefit the remaining 1.3 million consumers, mainly households, so that they can have a choice in their electricity purchases.  Consumers who prefer to stay with Singapore Power and purchase electricity at the regulated tariff can continue to do so.

Regards,
Corporate Communications Department
Energy Market Authority

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