About 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.

The 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 competition.

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 minutes.

Currently, non-contestable consumers, mainly households and small businesses, buy electricity at the regulated tariff from SP Group.

Since 1 April 2018, households and businesses in Jurong can choose to buy electricity from a retailer with a price plan that best meets their needs. This soft launch of the Open Electricity Market (previously referred to as Full Retail Competition) provides consumers with more choice and flexibility in their electricity purchases. EMA will extend this choice and flexibility to consumers in the rest of Singapore from the fourth quarter of 2018. This will involve 1.3 million accounts, mainly households.

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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