Preamble
In view of feedback that terms used in various publicity materials on the electricity retail market are too technical for the layman to be familiar with, this glossary attempts to simplify some of the difficult terms and concepts to assist interested parties in gaining an understanding of what these terms mean. As such, the glossary below is largely a non-technical description of terms used in the industry. Readers may use this glossary as a precursor to understanding the information booklet and other educational materials in greater depth.

Competition - Allowing two or more companies to produce or sell electricity in the same market.

Consolidated Billing - The details of all the electricity charges are listed as line items in a consumer's bill. Consumers receive a single bill for all the electricity charges.

Consumer Choice - The ability of consumers to shop, compare prices, and choose who to buy electricity from.

Consumption - The amount of electricity used by consumer.

Contestability - The right to choose among electricity retailers for electricity purchase.

Contestable Consumer - Consumer who has the right to choose how and whom they want to buy electricity from.

Electricity Charges - Charges for electricity supply comprising basic components such as grid, energy and market support services charges.

Electricity Retailer - A company that sells or offers to sell electricity to contestable consumers.

Energy Market Company (EMC) - The company that operates and administers the wholesale electricity market.

Generation - The process of producing electricity.

Generation Company (Genco) - A company that produces electricity.

Grid - A system of interconnected power lines that transport electricity from generators to consumers.

Interval Meter - A meter that records electricity usage in each half hour interval.

KiloWatt-hour (kWh) - The basic unit of electrical energy.

Liberalisation - The process of allowing competition in electricity production and retail so that consumers can have choices in buying electricity.

Load - The amount of electrical power required by a consumer.

Manual Meter Reading - Sending a meter-reader to consumers' premises to download and obtain the half-hourly electricity consumption data stored in the interval meter. This is done only if remote meter reading fails (See Remote Meter Reading).

Market Power - The ability of a seller/buyer, either individually or in collaboration with other sellers/buyers, to influence the price of electricity in the market.

Market Support Services (MSS) – These are services such as the buying of electricity indirectly from the wholesale electricity market for contestable consumers at spot prices, reading meters, managing meter data, administering transfer processes, and providing electricity to non-contestable consumers at regulated tariffs.

Market Support Services (MSS) Charges - Charges to cover the costs of market support services, such as transfer processing fees, meter reading fees, etc.

Market Support Services Licensee (MSSL) - The company that is licensed to provide market support services SP Services Ltd is the MSSL.

Non-contestable consumers - Consumers who are required to buy electricity from the MSSL at regulated tariffs.

Off-Peak Period - Period of time when there is relatively low demand for electricity.

Peak Period - Period of time when there is relatively high demand for electricity.

Regulated Tariffs - Electricity prices for non-contestable consumers. Regulated tariffs are approved by the regulator.

Regulator - The statutory body that regulates the electricity industry in Singapore. The Energy Market Authority is the regulator.

Remote Meter Reading - Using a telephone line, which is connected to the interval meter, to obtain the half-hourly electricity consumption data stored in the interval meter.

Retail Electricity Market - An electricity market where retailers compete to sell electricity to consumers.

Split Billing - The details of all the electricity charges are listed as line items in two separate bills, one for energy and MSS charges and the other for the grid charges.

Spot Prices - Prices determined half hourly at the wholesale market depending on demand and supply. Spot prices are not regulated or set by the regulator.

Terms of Contract/Contract Terms - The terms set out in the contract between an electricity retailer and a contestable consumer for the purchase of electricity, such as the contract duration, payment terms, mode of payment and contract termination provision etc.

Transmission - The process of delivering electricity from generation plants to consumers’ premises over the transmission system.

Transmission Charges - The charges for the use of the transmission system to deliver electricity to consumers’ premises. Transmission charges are regulated by the regulator.

Transmission Licensee - The company that is licensed to own the electricity transmission system and deliver electricity from generation plants to consumers’ premises. SP PowerAssets Ltd (SPPA) is the Transmission Licensee. SP PowerGrid Ltd (SPPG) is the agent appointed by SPPA to maintain and operate the electricity transmission system.

Vesting Contracts - Bilateral contracts between generation companies and MSSL for the production and sale of a specified quantity of electricity at a specified price (known as the "vesting price"). Vesting contracts are imposed by the regulator to curb market power of generation companies.

Vesting Debit/Credit - Reflected in MSSL's bill to contestable consumers buying electricity from the wholesale market through MSSL. It is the difference between spot prices and vesting price on the demand that is covered by vesting contract.

Wholesale Electricity Market - An electricity market where generation companies compete to sell electricity.

Note: While every attempt has been made to ensure accurate representation of the terms used in the electricity retail market, the following glossary does not replace the Electricity Act (Cap 89A), the Energy Market Authority of Singapore Act (Cap 92B), any other legislation or regulations and any other regulatory documents. Where discrepancies or inconsistencies exist between this glossary and any one or more of the legislation/ documents mentioned above, these legislation or documents will prevail. Readers are also advised that this glossary may evolve over time and new terms may be added. This glossary is current as of Aug 2005, but readers are encouraged to visit EMA’s website at www.ema.gov.sg for new updates on the electricity retail market, changes to this glossary and any other publicity and educational materials for consumers.