Second Minister S Iswaran's written reply to Parliament Question on Town Gas

Question

Mr Lim Biow Chuan: To ask the Minister for Trade and Industry (a) whether the Energy Market Authority provides price guidelines for City Gas' services in respect of the extension of gas mains and connection of gas to residences; (b) how are prices set by City Gas for their services; and (c) whether residential home owners have any recourse for City Gas' prices considering that City Gas has the monopoly on such gas services.

Written Reply by Mr S Iswaran, Second Minister for Trade and Industry

1. City Gas is Singapore’s town gas manufacturer and retailer.  Town gas is distributed to consumers through the town gas pipeline network, which is owned and operated by the gas transporter, PowerGas.  Both City Gas and PowerGas are regulated by EMA.

2. Applications for connection to the town gas network are made through City Gas, which manages the connection process on behalf of PowerGas.  The charges that PowerGas levies on consumers to connect their premises to the town gas network are based on charging guidelines approved by EMA.  The connection cost for a consumer depends on the size and length of the gas pipes required to connect the consumer’s premise to the gas network.  The underlying principle is that the consumer(s) requesting such connections should bear the full costs of connection.

3. Consumers who do not agree with PowerGas’ cost assessment can submit their appeals to EMA for review.