Please use this identifier to cite or link to this item:
Title: The New Electricity Market of Singapore: Regulatory framework, market power and competition
Authors: Chang, Y. 
Keywords: Lerner index
Market power
Vesting contracts
Issue Date: 2007
Citation: Chang, Y. (2007). The New Electricity Market of Singapore: Regulatory framework, market power and competition. Energy Policy 35 (1) : 403-412. ScholarBank@NUS Repository.
Abstract: This study examines whether the New Electricity Market of Singapore (NEMS) is functioning at a workable level of competition. The generation market of the NEMS appears highly concentrated by a four-firm concentration ratio or the Herfindahl-Hirschman Index. However, other measures of market power present that the NEMS is working at close to a competitive market. First, there seems to be a number of effective competitors in the market. Second, Supply Margin Assessment and Residual Supply Index support that the market is competitive though there are some possibilities in which the largest generator or a few large generators jointly could still have market power. Third, the Lerner Index of the NEMS shows that the generation market is fairly competitive and the Lerner Index adjusted with an industry level price elasticity of demand implies that there has not been much exercise of market power. Finally, vesting contracts-a contractual obligation of a specified quantity of electricity supply to the market-have appeared to be a strong and effective tool to mitigate market power in the NEMS. The vesting contracts are considered the force behind the lowering in the average Uniform Singapore Electricity Price and the Lerner Index in 2004. © 2005 Elsevier Ltd. All rights reserved.
Source Title: Energy Policy
ISSN: 03014215
DOI: 10.1016/j.enpol.2005.11.036
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.


checked on Jan 30, 2023


checked on Jan 30, 2023

Page view(s)

checked on Feb 2, 2023

Google ScholarTM



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.