How to Become a Licensed Electricity Retailer in Singapore

This guide provides a comprehensive overview of the process and requirements for becoming a Licensed Electricity Retailer (LER) in Singapore. The journey to obtaining this license can take between 6 to 8 months and involves several key entities, including the Energy Market Authority (EMA), Power System Operator (PSO), Energy Market Company Pte Ltd (EMC), and SP Services Ltd (SPS).

Key Entities Involved

1. Energy Market Authority (EMA): The regulator of Singapore’s electricity and gas industry.
2. Power System Operator (PSO): Manages the power system operations in Singapore.
3. Energy Market Company Pte Ltd (EMC): Operates the Singapore Wholesale Electricity Market (WEM).
4. SP Services Ltd (SPS): Provides market support services, including meter reading, data management, and facilitating market access.

Steps to Becoming a Licensed Electricity Retailer

1. Electricity Retailer Licence Application

Entity: EMA
Description:

• Apply for an Electricity Retailer Licence through the GoBusiness Licensing portal.
• Two types of retailers:
• Market Participant Retailers (MPRs): Purchase electricity directly from the WEM and sell to contestable consumers. Registration with EMC is required.
• Non-Market Participant Retailers (NMPRs): Purchase electricity indirectly from the WEM through SPS and sell to contestable consumers. Registration with EMC is not required.

Application Process: 

• Visit the GoBusiness Licensing portal to apply.
• For licensing clarifications, contact EMA at 6835 8000 or email [email protected].
• For technical assistance with the portal, contact the helpdesk at +65 6774 1430 or [email protected].

Estimated Time to Complete: 8 weeks

2. Market Support Services Agreement (MSS Agreement)

Entity: SPS
Description:

• Required for both MPRs and NMPRs for SPS to provide market support services.
• Refer to the Market Support Services Code for details.

Application Process: 

• Sign the MSS Agreement as per the instructions provided.
• For further clarification, contact SPS at 1800 233 8000 or [email protected].

Estimated Time to Complete: 2 weeks

3. Power System Operator – Market Participant Agreement (PSO-MP Agreement)

Entity: PSO
Description:

• Required for MPRs to enforce each party’s rights and obligations under the Market Rules.
• Not applicable to NMPRs.

Application Process: 

• Sign the PSO-MP Agreement as per the instructions provided.
• For further clarification, contact EMA at 6835 8000 or [email protected].

Estimated Time to Complete: 1 week

4. Market Participation Application

Entity: EMC
Description:

• MPRs need to register with EMC as a Market Participant (MP).
• Requirements include:
• Prudential Requirements: Provide credit support (e.g., guarantee, cash deposits, or Treasury bills).
• Technical Requirements: Implement necessary IT systems.
• MP Bank Account: Open a bank account with EMC’s clearing bank, OCBC.

Application Process: 

• Complete the Market Participation Application as per the instructions provided.
• For further clarification, contact EMC at 6779 3000 or [email protected].

Estimated Time to Complete: 4 weeks

5. Electronic Business Transaction System (EBT System)

Entity: SPS
Description:

• Both MPRs and NMPRs need to implement an IT system to interface with SPS’ EBT System.
• SPS provides a Market Participation Kit with guidance for developing and deploying the software solution.
• Engage an IT vendor if necessary.
• A non-refundable Retailer Registration charge of $5,000 is payable to SPS.

Application Process: 

• Set up, interface, and test the system with SPS.
• For further clarification, contact MSSL at 6916 7228 or [email protected].

Estimated Time to Complete: 4 months

Other Relevant Information

• Open Electricity Market: Visit Open Electricity Market for more information.
• Market and Other Charges: Refer to Market and Other Charges.
• Code of Conduct: Each LER must comply with the Code of Conduct for Retail Electricity Licensees.

For any further clarification, contact the relevant entities as mentioned in each step. This guide aims to streamline the process of becoming a Licensed Electricity Retailer in Singapore, ensuring that prospective retailers can navigate the requirements efficiently and effectively.