Industry players say EMA review of tougher rules for power retailers shouldn’t hinder open competition

WHILE potentially stricter licensing conditions for Singapore’s electricity retailers could hold them in better stead to weather wholesale market price shocks such as the one witnessed last year, industry participants caution against such new legislation turning into hindrances for new entrants into the market.

“We welcome any new legislation that improves the ability or requirements for electricity retailers to hedge their risks. At the same time, any new legislation should not further limit the opportunity to enter the market,” said Ernst Westendorp, chief commercial officer of Flo Energy Singapore.

Westendorp, who is also co-founder of Flo, a licensed electricity retailer in Singapore, added: “We find it important that the market remains open to new entrants to allow customers to select the retailers that meet their needs. An open market also drives innovation.”