The Singapore government is liberalising the retail electricity markets to help consumers and businesses benefit from more advanced energy management systems and dynamic pricing plans.
Minister in the Prime Minister's Office and Second Minister for Trade and Industry, S Iswaran, announced in Parliament on Monday (11 March) that the government is progressively increasing competition in the electricity retail market. Hence, more companies will be able to buy electricity on the open market next year.
The Energy Market Authority will be lowering the contestability threshold in phases for Commercial and Industrial consumers. The threshold will go down from the current 10MWh to 8MWh on 1 April 2014.
Because of this, non-residential consumers who use a monthly average of at least 8MWh of electricity will have the flexibility to choose the source of their electricity.
The threshold will be further lowered to 4MWh on 1 October 2014.
"When these measures are implemented in full, it will allow about 20,000 consumers (or 70,000 accounts) to benefit from increased retail competition, up from the current 9,000 consumers (or 13,000 accounts)," said Iswaran.
"Notwithstanding these efforts, we recognise that energy costs may still be a cause for concern for some households. Our policy is to allow the price of energy to reflect its true cost and not to subsidise energy consumption, as this is wasteful and unsustainable," he said.
The Minister said that the government provides targeted assistance to low- and middle-income households through the permanent Utility-Save (U-Save) rebates and this year, these rebates have been doubled across all categories of HDB households.
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