Since 2001, the Energy Market Authority has progressively opened the retail electricity market to competition to give consumers more options to manage their energy cost. Instead of buying electricity at the regulated tariff from SP Services Limited (SPS), eligible consumers can choose to buy electricity from electricity retailers under customised price plans or from the wholesale electricity market at prices that fluctuates every half-hour.
Contestable consumers can choose to buy electricity from electricity retailers under customised price plans, or from the wholesale electricity market at prices that fluctuates every half-hour, instead of buying electricity from SPS at the regulated tariff. Non-contestable consumers buy electricity from SPS at the regulated tariff.
A commercial or industrial (C&I) consumer with an average monthly electricity consumption of at least 2,000 kWh (the monthly electricity bill is about $400) is eligible to become contestable. Consumers are allowed to add up their electricity usage across different locations in Singapore to meet the prevailing threshold to become contestable.
After being granted contestability status, the single legal entity can select any of its C&I account to become contestable individually and at any point in time. The individual premises under each single legal entity will remain as separate accounts, which will be metered and billed individually.
Single legal entity refers to any entity with a Unique Entity Number (UEN) issued by the relevant government agency that registers or oversees the entity, it also includes a person who has opened one or more accounts under his personal name for non-residential premises. The list of entity-types and the issuance agency for UEN is available here.