‘More choice, flexibility’ for all Singapore electricity users in 2018
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The Energy Market Authority (EMA) is looking at ways to give all electricity users – including industries, small commercial consumers and households – greater flexibility and choice in their electricity consumption.
To this end, the authority is working with industry stakeholders to “fully open the electricity retail market to competition” in the second half of 2018, said S Iswaran, Minister for Trade and Industry (Industry).
He was speaking at the opening ceremony of the Singapore International Energy Week at Marina Bay Sands yesterday morning. More details on the plans for full retail competition will be announced soon, he added.
A fully liberalised electricity market will give consumers the choice to buy electricity from electricity retailers under customised price plans, or from the wholesale electricity markets at prices that fluctuate every half-hour.
Currently, only about 33,000 commercial and industrial consumers with an average monthly electricity consumption of at least 2MWh – which amounts to a monthly electricity bill of about $450 – benefit from this flexibility. This threshold was most recently lowered from 4MWh to 2MWh in July.
The remaining 1.3 million consumers, mainly households, are on the regulated tariff with SP Services.
Questions & Answers
Q.Who will benefit from the new electricity market changes in Singapore?
Who will benefit from the new electricity market changes in Singapore?
All electricity users will gain greater flexibility and choice, including industries, small commercial consumers, and households. The aim is to open the retail market fully to competition.
Q.When is the retail electricity market expected to be fully opened to competition?
When is the retail electricity market expected to be fully opened to competition?
The Energy Market Authority is working with industry stakeholders to fully open the electricity retail market in the second half of 2018. More details on the plans will be announced soon.
Q.What options will consumers have for buying electricity in a fully liberalised market?
What options will consumers have for buying electricity in a fully liberalised market?
Consumers will have the choice to purchase electricity from retailers using customised price plans. Alternatively, they can buy directly from wholesale electricity markets, where prices change every half-hour.
Q.How many consumers are currently unable to choose their electricity provider?
How many consumers are currently unable to choose their electricity provider?
Approximately 1.3 million consumers, predominantly households, are currently on the regulated tariff with SP Services. These consumers do not yet benefit from the flexibility of choosing a provider.
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