Market Overview

Power generation companies have to bid to sell electricity in the wholesale electricity market every half-hour. Depending on electricity demand and supply, the price of electricity in the wholesale electricity market changes every half-hour.

Electricity retailers buy electricity in bulk from the wholesale electricity market and compete to sell electricity to consumers.
 

Since 2001, the Energy Market Authority (EMA) has progressively opened up the retail electricity market to competition. This is to allow consumers to enjoy more choices and flexibility when buying electricity. Consumers will also benefit from competitive pricing and innovative offers while enjoying the same electricity supply.

The Open Electricity Market marks the final phase of market liberalisation efforts where all consumers in Singapore are able to choose who they wish to buy electricity from. Their options are to buy electricity from:

• An electricity retailer at a price plan that best meets their needs; or
• The wholesale electricity market at half-hourly wholesale electricity prices through SP Group; or
• [Default] SP Group at the regulated tariff.

Learn more about the Open Electricity Market here.

The key stakeholders in the electricity market include the following:
 

The Energy Market Authority is the government agency that oversees Singapore’s electricity and gas sectors. EMA’s main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore.

Power generation companies compete to generate and sell electricity in the wholesale electricity market every half-hour.

The Energy Market Company operates and administers the wholesale electricity market.

Electricity retailers buy electricity in bulk from the wholesale electricity market and compete to sell electricity to consumers.

SP Services, a member of SP Group, is the Market Support Services Licensee (MSSL). It provides services such as the reading of electricity meters, management of meter data and facilitation of access to the wholesale electricity market.

SP PowerAssets is the Transmission Licensee. It owns the power grid which delivers electricity island-wide. SP PowerGrid is the agent appointed by SP PowerAssets to build and maintain the power grid. Both SPPA and SPPG are members of SP Group.

Today, about 95% of Singapore’s electricity is produced from natural gas. Natural gas is used as fuel to produce electricity in power plants run by generation companies.

Electricity generated is delivered to consumers through the national power grid, operated by SP Group (via its member SP PowerGrid). Electricity retailers and SP Group (via its member SP Services) buy electricity in bulk from the wholesale electricity market to supply to consumers.

If consumers choose to buy electricity from an electricity retailer, their supply will remain the same as SP Group will continue to operate the national power grid and deliver electricity to consumers.