By participating in the Demand Response programme, eligible business consumers will voluntarily reduce their electricity usage when wholesale electricity prices are high. In return, they receive a share of the overall benefits of the system.

These reductions in electricity demand typically contribute to lowering wholesale electricity prices.

Eligibility Criteria:

• If you are a contestable consumer and can offer to reduce your electricity consumption, you can participate through your electricity retailer or a Demand Response Aggregator.

• You can also participate directly in the National Electricity Market of Singapore (NEMS) if you can offer to reduce your electricity consumption by at 0.1 megawatt (MW).

Benefits of Demand Response Programme:

• Participating business consumers will receive financial incentives when activated to manage their electricity usage in response to the price signals in the electricity market.

• It helps to lower wholesale electricity prices during peak periods by avoiding the need to schedule more expensive generation units to operate.

• Consumers will be able to make efficient investments by reducing ‘peaks’ in electricity consumption where prices are typically higher. In the long term, this reduces the need to invest in expensive generation units that are only run infrequently to meet peak demand.

• Improves system reliability as consumers reduce their consumption in response to high prices during periods of tight supply (e.g. due to unplanned power generation unit outages).