Question

Mr Christopher de Souza: To ask the Minister for Trade and Industry (a) whether the Management Corporation Strata Title of condominiums pay commercial rates for electricity bills; and (b) if so, whether they should be paying residential rates instead amidst rising electricity prices.

Written Answer by Minister for Trade and Industry Gan Kim Yong

1. As stated in the Electricity (Contestable Customers) Regulations 2018, the electricity accounts for the Management Corporation Strata Title (MCST) of condominiums are not considered residential premises. MCST accounts typically consume sizeable amounts of electricity. Besides using electricity for common areas and facilities such as lifts and lighting, MCSTs may also use electricity for business operations or for premises that are leased to businesses such as provision shops.

2. Since they are considered non-residential, MCST accounts that consume an average of 4 megawatt-hour (MWh) a month or more cannot opt to switch from the contested market to regulated tariff. Electricity offered through the regulated tariff is purchased by SP Group (SP) through long-term vesting contracts with generation companies (gencos). Contestable consumers who wish to return to the regulated tariff are allowed to do so, except larger consumers who consume an average of more than 4 MWh of electricity monthly. This is due to the limited quantity of the long-term vesting contracts. To offer the regulated tariff to large consumers, which includes most MCSTs, SP would need to buy additional electricity from the Singapore Wholesale Electricity Market. This would cause the regulated tariff to rise.

3. For MCST accounts and others who are not eligible for regulated tariffs, the Energy Market Authority (EMA) has worked with gencos and retailers to provide various contracting options. More information can be found at EMA’s website: https://www.ema.gov.sg/electricity-contracting-options-consumers.aspx.