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Restructuring of Electricity Industry
The electricity industry is being restructured with the aim to encourage competition and provide consumers with more choices. The electricity market consists of a wholesale electricity market (spot markert) and a retail electricity market. The spot market is a "pool" through which electricity is traded. Generation companies bid every half-hour to sell electricity while retailers compete to sell electricity to contestable consumers through customized packages to meet consumers' needs.
Click on the above to view a larger version of the diagram.
The key participants in the new electricity market are:
·
 Energy Market Authority (EMA) - Regulates the electricity industry in Singapore
·
 Energy Market Company (EMC) - The Market Operator who operates and administers the spot market
·
 Generation Companies - produce electricity and sell at the spot market
·

Transmission Licenses (SP PowerAssets Ltd) - owns the electricity supply network and transports electricity. SP PowerAssets Ltd (SPPA) has authorized SP PowerGrid Ltd to act for and on behalf of SPPA in the management and operation of all aspects of the regulated transmission and distribution business, including the installation and maintenance of electricty meters.
·
 Retailers - buy electricity from the wholesale electricity market at spot prices or through bilateral contracts signed with generation companies and compete to sell electricity to contestable consumers through customized packages
·
 SP Services Ltd - Market Support Services Licensee (MSSL) who provides market support services.
Role of SP Services Ltd in the Restructured Market
SP Services Ltd, as the MSSL,
1.
 Provides regulated Market Support Services such as retail settlement, meter reading and meter data management, consumer registration and transfer processing for contestable consumers who switch from one retailer to another.
2.
 Provides billing and payment collection of transmission service charges on behalf of SP PowerAssets Ltd.
3.
 Facilitates indirect access to spot market by retailers or by contestable consumers who have not signed up with retailers.
4.
 Supplies electricity to non-contestable consumers at regulated tariff.

Visit Services for more information about MSSL services.

Phase 1 & 2 of the New Electricity Market

Market Support Services Code

Metering Code
New Retail Market

The retail market is being liberalized in phases.

. From 1 July 2001, consumers with contracted capacity of 2MW or more became contestable.

. From 1 January 2003, contestability was introduced to non-domestic consumers taking high tension and extra high tension.

. From 1 June 2003, High tension and extra high tension contestability was extended to all non-domestic consumers taking electricity supply as well as low tension consumers with an average monthly electricity consumption of 20,000kWh and above.

Phase I was launched in three batches. The first batch was launched on 1 June 2003. The second and third batches were launched on 24 August 2003 and 28 September 2003 respectively.

Under Phase II, contestability was further extended to non-domestic low tension consumers with an average monthly consumption of 10,000kWh and above. Five batches have already been launched on 21 December 2003, 28 March 2004, 26 June 2005, 9 October 2005 and 12 February 2006.

For the remaining consumers, until these consumers become contestable, SP Services will purchase electricity on behalf of these non-contestable consumers who are billed according to approved tariff rates. Non-domestic consumers may apply for contestability if they meet the contestability threshold.

Choice for Contestable Consumers
The choices available to contestable consumers in the new electricity market are:
·
 Purchase electricity from licensed electricity retailers (Retailer Consumer)
·
 Purchase electricity directly from the spot market as a direct market participant (Direct Market Consumer)
or
·
 Purchase electricity indirectly from the spot market through SP Services Ltd (MSSL Consumer)