Singapore’s electricity market to be fully liberalised in Q2 of 2018
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Singapore’s electricity market will be fully liberalised in the second half of 2018, allowing households to have more choice in their power consumption, Minister of Trade and Industry (Industry) Mr S Iswaran said today (Oct 26).
The announcement came during Mr Iswaran’s opening address at the Singapore International Energy Week 2015 held at the Sands Expo and Convention Centre at Marina Bay Sands earlier today.
Energy Market Authority (EMA) hopes to achieve “full retail competition” which will enable 1.3 million consumers – mostly households – to “have flexibility and choice in their electricity consumption”.
Earlier this year on July 1, lowering the contestability threshold from 4MWh to 2 MWh allowed commercial and industrial (C&I) consumers – from large users such as petrochemical companies to smaller users like coffee shops and kindergartens – to participate in the contestable market and better manage their energy costs by purchasing from a retailer instead of remaining on the regulated tariff with SP services.
EMA will release more details on the plans for full retail competition soon.
The government also plans to establish a Secondary Gas Trading Market (SGTM) to allow gas buyers and sellers to trade gas on a short-term basis domestically.
With an SGTM, EMA hopes to “enhance Singapore’s position as a hub for LNG and gas trading activities.”
EMA will issue a consultation paper later today to seek industry feedback on the design for a domestic SGTM.
Furthermore, EMA intends to “put out more information on the projected growth on the longer term energy market outlook in Singapore”.
This would include information on the projected growth of electricity system demand, as well as a mix of sources coming from gas plants, solar and electricity imports by 2030.
Questions & Answers
Q.When will Singapore's electricity market be completely open to competition for households?
When will Singapore's electricity market be completely open to competition for households?
The full liberalisation of Singapore's electricity market, allowing households more choice in power consumption, is projected to occur in the second half of 2018. This was announced by Minister S Iswaran on October 26.
Q.Which government body is responsible for implementing the full retail competition in the electricity market?
Which government body is responsible for implementing the full retail competition in the electricity market?
The Energy Market Authority (EMA) is the government body that hopes to achieve full retail competition. They aim for 1.3 million consumers, mostly households, to have flexibility and choice in their electricity consumption.
Q.What is the purpose of the Secondary Gas Trading Market the government plans to establish?
What is the purpose of the Secondary Gas Trading Market the government plans to establish?
The government plans to establish an SGTM to allow gas buyers and sellers to trade gas on a short-term basis domestically. EMA hopes this will enhance Singapore's position as a hub for LNG and gas trading activities.
Q.What kind of information will EMA provide about Singapore's long-term energy market outlook?
What kind of information will EMA provide about Singapore's long-term energy market outlook?
EMA intends to provide information on the projected growth of electricity system demand. This will also include the anticipated mix of sources, such as gas plants, solar, and electricity imports, by the year 2030.
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