Change in energy retailer rule 2026

• The Energy Market Authority (EMA) has announced changes to the rules governing electricity retailers in Singapore, effective from June 19, 2026. These changes include:

Notification Requirements: Retailers must notify consumers twice about upcoming auto-renewals, with the first notification sent at least 10 business days before contract expiry and the second sent within three days before or on the day of the auto-renewal

Fee Waiver: Retailers will be required to waive early termination fees for consumers wishing to end their contracts within the first 60 days of auto-renewal, up from the previous 30 days. 

Communication Methods: Notifications must be sent via mail and mobile communication channels such as SMS, WhatsApp, or via the retailer’s mobile application. 
These changes aim to enhance consumer protection and ensure transparency in the electricity market. The new rules will not apply to consumers of SP Group

Quoted from Straits Times “More businesses will reap savings and earn rewards by lowering their energy usage during peak periods under an expanded programme by the Energy Market Authority (EMA).

For example, businesses that own battery energy storage systems (ESS) of a certain capacity can reduce the electricity they draw from the grid during peak periods by relying on their in-house batteries to run operations.

While a direct benefit of this programme is lower electricity costs and financial incentives for participating businesses, adjusting electricity demand in response to peaks will relieve stress on the grid during high-demand periods and unplanned outages.”

https://www.straitstimes.com/singapore/more-businesses-in-s-pore-to-get-reward-for-reducing-electricity-usage-during-demand-surge

Quoted from EMA “As Singapore moves towards net-zero emissions by 2050, we will see a proliferation of Distributed Energy Resources (DERs).

While DERs on their own may be small and distributed across multiple locations in Singapore, they can be aggregated to operate as a single generator to provide energy and ancillary services to the grid. This aggregated digital platform of DERs is also known as a Virtual Power Plant (VPP).

VPPs have shown potential of contributing to system needs in other jurisdictions. There is currently no regulatory framework allowing the aggregation of DER via a VPP to provide energy and ancillary services in the Singapore Wholesale Electricity Market (SWEM).

In view of the potential benefits that VPPs can bring to our power system, EMA intends to pilot VPPs via a regulatory sandbox to inform the regulatory framework for VPPs. “

Crystal Clear Environmental is fully supportive of EMA’s direction to setup VPP concept in Singapore. This helps to improve our overall grid integrity while Singapore explore ways to import clean renewable energy sources from nearby countries.

For interested parties, you may submit your proposal here https://www.ema.gov.sg/content/dam/corporate/partnerships/consultations/harnessing-ders-via-vpps-to-provide-energy-and-ancillary-services/consultation/EMA-Consultations-Consultation-Harnessing-DERSs-via-VPPs-to-provide-energy-and-ancillary-services-20241021.pdf.coredownload.pdf

The ILS program is designed to incentivize large electricity consumers to reduce energy consumption during periods of high demand.

Reduction methods can include BESS to provide stored electricity during periods of high demand, turning off non-essential equipment, adjusting heating and cooling systems.

Payment to participating businesses varies based on the level of reduction achieved and the duration of the load shedding event.

Consumers to be on standby to reduce their electricity demand during conditions of tight power generation supply, in exchange for payment. For example, when during a power outage.

Under normal circumstances, commercial entities buys electricity on the open market at wholesale prices​. Their backup power / emergency power sources are unused​. This power may be offered to the energy market as standby load reduction participants for income.

A Demand Response exercise is a pre-determined scheduled off-set of power consumption to alternate sources such as a BESS

Consumers to reduce their electricity demand voluntarily when wholesale electricity prices are high, in exchange for a share in the system-wide benefits. Such reductions in electricity demand typically help to reduce wholesale electricity prices.