Mr Yip Hon Weng: To ask the Minister for Trade and Industry (a) when is the Ministry expecting to complete its review of tightening licensing conditions for electricity retailers to protect consumers; and (b) how does the Ministry ensure that higher costs will not be passed on to consumers.
Oral Answer (to be attributed to Second Minister for Trade and Industry Tan See Leng)
1. Mr Speaker, in October 2022, the Ministry of Trade and Industry announced that EMA would be introducing guardrails to strengthen the electricity market and prepare Singapore for the energy transition. These guardrails include enhancements to the regulatory requirements on electricity retailers to strengthen consumer protection and the retailers’ ability to withstand market volatility. On 1 February 2023, EMA launched a public consultation on the proposed enhancements to the regulatory framework for electricity retailers. The consultation will close on 3 March 2023. We will study the feedback carefully thereafter and fine-tune the enhancements before implementing them.
2. The proposed enhancements will give users greater assurance that their retailers will be able to fulfill their contracts. MTI and EMA have carefully calibrated the proposed enhancements to minimise the cost impact of complying with the new regulations. These enhancements are part of a broader set of moves to bring about a stronger and more secure power system and mitigate the impact of global volatility on domestic consumers.