SINGAPORE Law and Practice Contributed by: Adam Moncrieff, Karthik Kumar, Lynette Lim and Kelly Choo, Orrick, Herrington & Sutcliffe LLP
pay any person any fee, charge or expense for the right to enter or use any land or premises to carry out the work it is empowered to carry out as mentioned above. However, the licensee is required to pay com- pensation to any person who suffers damage or loss of value to such person’s property as a result of the licensee’s work. The amount of such compensation is to be agreed between the licensee and such person, and may include an annual payment for the use of land or immovable property for the licensee’s purposes. Separate approval(s) are required if the licensee wishes to enter or use land or premises belonging to another government or statutory authority, or another electricity licensee. 4.5 Monopoly Rights to Provide Transmission Services An electricity licence issued by the EMA under the Electricity Act is required for the transmission of elec- tricity in Singapore; no person (other than the EMA itself) may engage in the transmission of electricity in Singapore unless authorised pursuant to such a licence. No transmission licensee may be granted an electricity licence to carry out any activity other than the transmission of electricity. In determining whether to grant or extend an electricity licence, the EMA is required under the Electricity Act to consider various factors, including, amongst oth- ers, that person’s ability to finance the relevant activ- ity, its experience and ability to perform, and whether that person is related to any electricity licensee. There is currently only one transmission licensee in Singapore, being SPPA. See 1.2 Principal State- Owned or Investor-Owned Entities . 4.6 Transmission Charges and Terms of Service Charges for the provision of transmission services are regulated by the EMA under the terms of SPPA’s transmission licensee electricity licence issued by the EMA. Under such licence, SPPA is required to develop a cost recovery methodology setting out the basis on which such charges will be made. The methodology
and any proposed revisions thereto are required to be submitted to the EMA for approval prior to such charges being levied. SPPA’s licence also sets out certain objectives and considerations which such methodology and any revisions must be developed in accordance with. SPPA is also required to publish statements that must provide the basis on which such charges are levied. 4.7 Open-Access and Non-Discriminatory Transmission It is a condition of SPPA’s transmission licensee elec- tricity licence issued by the EMA that it shall provide non-discriminatory access to persons similarly situ- ated for services comprised within SPPA’s authorised business. Also, as a condition of its transmission licensee elec- tricity licence, SPPA is required to develop its cost methodology and any revisions thereto such that the fees and charges for the provision of transmission services do not discriminate between any persons or classes of persons similarly situated. 5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities The principal laws that govern the construction and operation of electric distribution facilities are the same as that for transmission networks, see 4.1 Construct- ing and Operating Transmission Lines and Associ- ated Facilities . There is no explicit standalone regime for storage and microgrids specifically.
5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities
The regulatory process for obtaining approvals nec- essary to construct and operate electric distribution facilities is the same as that for transmission networks. See 4.2 Obtaining Approvals to Construct and Oper- ate Transmission Lines and Associated Facilities .
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