Since 2000, the retail electricity market has been liberalised in phases with plans to open up the market to full competition to promote the efficient supply of competitively priced electricity. The introduction of competition among the retailers benefits contestable consumers with improved services, greater efficiency, competitive prices and innovative products.
The liberalization of the retail electricity market has been implemented in phases to ensure a smooth transition. Thus far, the liberalisation has opened up 75% of total electricity sales in Singapore to competition. A total of about 10,000 contestable consumers are able to exercise their choice of electricity purchase.
The final phase of retail market liberalisation, i.e. Full Retail Contestability (FRC) is currently under review. This phase will involve the remaining consumers comprising mainly small businesses and household consumers. Collectively, these non-contestable consumers - more than 1 million in number - represent 25% of the total electricity sales in Singapore. Currently, they continue to purchase their electricity from SP Services Ltd at the regulated tariff.
