Deregulation of the power industry in Singapore

Singapore has not completed its deregulation process. We are currently conducting a further restructuring of the power industry to prepare ourselves for the final phase of privatization. The results that Singapore have achieved so far do however show that the strategy of adopting the evolutionary approach of deregulating the power industry through corporatisation, restructuring and further restructuring before privatization is pragmatic and effective. Since corporatisation the power industry has become more efficient and more reliable. Customer service has improved. Investments in new power plants and transmission network infrastructure have increased significantly. The industry is also making healthy profits through efficiency and productivity gains, and lower cost of purchase of power equipment and cables. Singapore Power and its group of subsidiaries have adapted very well in the new business environment. They have successfully acquired generation and transmission assets overseas and created many spin-offs to leverage on their core expertise and assets. The structure of the power industry and the operations of the industry players have consolidated. A new effort to further restructure the power industry has begun. Implementation of approved new changes will commence at the end of 2000 and the entire exercise to deregulate the power industry will be completed by 2003.