The Energy Market Authority continually seeks to develop the electricity market and introduce new market development initiatives to bring benefits to consumers such as the Open Electricity Market.
The Market Development and Systems Charge (MDSC), which forms part of the Market Support Service charges, is intended to support the development and implementation of such initiatives. The MDSC* effective from 1 April 2021 will be:
* Payable by Contestable Customers i.e. consumers who do not pay for electricity based on the regulated tariff, charges exclude prevailing GST
The MDSC will support a range of market development initiatives, such as the Electricity Futures Market and the Open Electricity Market. These initiatives will benefit consumers by bringing about competitive pricing and more choices.
For instance, the Open Electricity Market (www.openelectricitymarket.sg) allows consumers to buy electricity from a retailer of their choice, at a price plan that best meets their needs. Empowering consumers with this choice and flexibility in their electricity purchases have incentivised retailers to provide more competitive pricing and innovative offers. There are retailers who offer various types of price plans ranging from green energy options to those with tie-ups with other service providers such as telecommunications companies, insurance companies and banks.
The introduction of the Electricity Futures Market has facilitated the entry of several independent retailers and further injected competition in the retail electricity market to the benefit of consumers.