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Electricity market deregulation in Singapore – Initial assessment of wholesale prices
- Loi, Tian Sheng Allan, Jindal, Gautam
- Energy policy 2019 v.127 pp. 1-10
- electricity, electricity costs, government deregulation, markets, oils, prices, retail marketing, Singapore
- Singapore began a huge step to deregulate its electricity market since 2003, with the creation of the National Electricity Market of Singapore (NEMS) allowing for bid-ask offers to be made for the dispatch of electricity supply on the wholesale side. Subsequently, the retail market liberalised in tranches, with 80% of electricity consumers currently already given an option to select their electricity retailers since late 2014. This paper aims to quantitatively analyse how competitiveness in both the wholesale and retail market led to price decreases from 2014 to 2017, using daily data for electricity and oil prices. We find that supply competition and the more recent retail liberalisation efforts has possibly led to a combinatorial decrease in wholesale electricity prices by up to 9.11%, accounting for the influence of oil prices and volatility components. This work seeks also to bring some insights on what to expect from full retail contestability after the latter half of 2018.