95 per cent of Singapore’s electricity supply is generated using imported
natural gas. We therefore need to ensure that our energy supplies are secure
and that the prices we pay for our energy sources remain competitive.
story of Singapore’s energy market goes back to 1995, when parts of the then
Public Utilities Board (PUB) were corporatised.
In 2001, EMA was set up as part of the Singapore government’s efforts to
liberalise the energy market. As a regulator, EMA was also tasked to ensure
that Singapore has a reliable and secure energy supply and to promote effective
Electricity is delivered to homes, offices and industrial facilities islandwide via the
national power grid, which comprises the high voltage transmission network and
the low voltage distribution network. The Energy Market Authority (EMA), as the
power system operator, monitors and ensures the security of the electricity
generation and transmission system, while SP Group owns, and operates both the
transmission network and distribution network.
Over the years, the energy sector was progressively liberalised and restructured.
During this time, we opened up generation and retail markets to commercial
players, established a regulatory framework and introduced a wholesale
electricity market run by the Energy Market Company with spot bidding every 30
non-contestable consumers, mainly households and small businesses, buy
electricity at the regulated tariff from SP Group. Since 1 April 2018, EMA commenced the soft launch of the Open Electricity Market, where households and businesses in Jurong can choose to buy electricity from a retailer at a price plan that best meets their needs.
From 1 November 2018, the Open Electricity Market was rolled out progressively to all consumers across Singapore by zones. This initiative allows about 1.4 million households and business accounts with more choice and flexibility when buying electricity, while being provided with the same electricity supply through the national power grid.
Consumers who wish to remain with SP Group and buy electricity at the regulated tariff can choose to do so, and no further action is needed on their part. It is not compulsory to switch to a retailer and there is no deadline for switching.
A reliable electricity supply is critical to Singapore’s economic development.
EMA also puts in place regulatory measures to further strengthen the
reliability of Singapore’s electricity supply. This is done thorough reviews
with industry players to enhance emergency preparedness of the power sector.
With these measures in place, Singapore’s electricity grid maintains its status as
one of the most reliable in the world, with an average interruption time of
less than 1 minute per customer per year.
Electricity Industry Structure
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