Reform of the electricity industry in Singapore

In Singapore, the electricity industry had traditionally been vertically integrated and Government-owned. For more than 30 years since 1963, the Public Utilities Board (PUB), a statutory body, was responsible for the generation, transmission and supply of electricity to consumers. The PUB also supplied piped gas and water to the entire population of Singapore. On 1 Oct. 1995, the Government of Singapore privatised the electricity and piped gas undertakings of PUB. The vertically integrated electricity industry was restructured. Two generation companies, a transmission and distribution company and a supply company were formed under Singapore Power. The third generation company, Tuas Power, will come on stream in 1999. The reform was to facilitate competition in electricity generation and supply. The PUB was reconstituted on 1 Oct. 1995 to take on the new role of regulating the electricity and piped gas industries. The PUB also continues to be the Water Authority, responsible for water supply in Singapore. The objective of regulation is to safeguard consumer interests while ensuring that companies in the electricity industry are financially viable and have an incentive to operate efficiently. The regulatory regime has to balance between the conflicting requirements. The rules will have to be fine-tuned from time to time adjusting to changing scenarios.