Proposed Changes to Strengthen Protection for Electricity Consumers
01 Feb 2023
The Energy Market Authority (EMA) is seeking views and feedback from the public and industry on its proposed enhancements to the electricity retailer regulatory framework.
2. The electricity retail market has been progressively liberalised since 2001 to provide consumers with a wider range of retail price plans. With the nationwide rollout of the Open Electricity Market (OEM) in 2018, all consumers, including households and small business consumers have had the option of buying electricity from retailers. Consumers have benefited from the competition.
3. In October 2022, the Ministry of Trade and Industry (MTI) announced that EMA would introduce guardrails to strengthen the existing competitive market structure and ensure that Singapore is well-positioned to navigate the energy transition. This includes enhancing the regulatory requirements on electricity retailers to strengthen consumer protection and ensure that they are sufficiently resilient against market volatility.
4. EMA will be launching a public consultation from 1 February 2023 to 3 March 2023 to seek comments and feedback on the proposed enhancements to the regulatory regime for electricity retailers.
5. The proposed enhancements are intended to:
a. Ensure electricity retailers are credible and have sufficient financial standing by requiring them to have a paid-up capital (PUC) or Tangible Net worth (TNW) of at least $1 million;
b. Ensure electricity retailers are run by fit and proper individuals, EMA is proposing to require all retailers to seek approval to appoint Key Appointment Holders;
c. Strengthen the resiliency of all retailers, in particular their ability to withstand market volatility, to safeguard the relative stability of the retail market. EMA is proposing to impose hedging requirements for all retailers; and
d. Enhance consumer protection against premature termination of contracts by retailers, such as by requiring retailers that impose early termination charges on consumers to similarly compensate consumers in the event of early termination.
6. Further details about the proposed enhancements can be found on the EMA website (https://go.gov.sg/ema-consultation-retailer-regulatory-framework) and the REACH website (https://go.gov.sg/feedback-electricityretailing). We welcome views on the proposals presented in the Public Consultation Document. Please submit feedback via email to email@example.com by 3 March 2023, 5pm.
Annex: Summary of Current Requirements and Proposed Enhancements
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