Energy Glossary
This glossary attempts to simplify some of the difficult terms and concepts to assist staff in gaining an understanding of what these terms mean. As such, the glossary below is largely a non-technical description of terms used in the industry.

AFP Charge This is the charge for the recovery of the cost incurred for the procurement of Regulation. Regulation is energy needed to fine-tune between the generation and consumption of electricity on a half-hourlybasis.
Contestability The right to choose among electricity retailers for electricity purchase.
Contestable Consumer Consumer who has the right to choose how and whom they want to buy electricity from.
Electricity Retailer A company that sells or offers to sell electricity to contestable consumers.
EMC Admin Charge EMC (Energy Market Company) operates the wholesale electricity market. EMC runs the electricity pool and manages the energy settlement processes. This is a usage-based charge calculated using loss adjusted data.
Energy Audit A programme whereby an energy auditor or energy auditing company inspects a facility or premise to assess the energy use and suggest ways of saving energy.
Energy Market Authority (EMA) The regulator of the electricity and gas industry in Singapore.
Energy Market Company (EMC) The company that operates and administers the wholesale electricity market.
Generation The process of producing electricity.
Generation Company (Genco) A company that produces electricity.
Grid A system of interconnected power lines that transport electricity from generators to consumers.
HEUC Despite the hourly in its name, it is charged every half-hour. It is a balancing component so it can be positive or negative. HEUC can be affected by flows over the interconnection with Malaysia. These flows do not involve financial payments as they are meant to balance out over time. That is over time, the flow of electricity from Singapore to Malaysia and vice versa is intended to be equal. EMC as per the Singapore Electricity Market Rules has to provide EMA with a monthly report on these flows. So EMA has sight of the flows. When electricity flows from Singapore to Malaysia, HEUC would usually increase with the opposite happening when electricity flows from Malaysia to Singapore.
Kilowatt-hour (kWh) The basic unit of electrical energy.
Liberalisation The process of allowing competition in electricity production and retail so that consumers can have choices in buying electricity.
Load The amount of electrical power required by a consumer.
Market Power The ability of a seller/buyer, either individually or in collaboration with other sellers/buyers, to influence the price of electricity in the market.
Market Support Services (MSS) These are services such as the buying of electricity indirectly from the wholesale electricity market for contestable consumers at spot prices, reading meters, managing meter data, administering transfer processes, and providing electricity to non-contestable consumers at regulated tariffs.
Market Support Services (MSS) Charges Charges to cover the costs of market support services, such as transfer processing fees, meter reading fees, etc.
Market Support Services Licensee (MSSL) The company that is licensed to provide market support services SP Services Ltd is the MSSL.
MEUC This is a usage-based charge computed using loss-adjusted data. This charge is for the recovery of the cost incurred by the System Operator to procure supplementary services from the market to ensure the security and reliability of the electricity system. For example, Black Start Service is procured to re-start the system during a total blackout.
Non-Contestable Consumers Consumers who are required to buy electricity from the MSSL at regulated tariffs.
Off-Peak Period Period of time when there is relatively low demand for electricity.
Peak Period Period of time when there is relatively high demand for electricity.
PSO Admin Charge PSO (Power System Operator) is responsible for the security and reliability of the transmission system. All customers pay a usage-based fee for the provision of this service.
Regulated Tariffs Electricity prices for non-contestable consumers. Regulated tariffs are approved by the regulator.
Regulator The statutory body that regulates the electricity industry in Singapore. The Energy Market Authority is the regulator.
Retail Electricity Market An electricity market where retailers compete to sell electricity to consumers.
Spot Prices Prices determined half hourly on the wholesale market depending on demand and supply. Spot prices are not regulated or set by the regulator.
Terms of Contract/Contract Terms The terms set out in the contract between an electricity retailer and a contestable consumer for the purchase of electricity, such as the contract duration, payment terms, mode of payment and contract termination provision etc.
Transmission The process of delivering electricity from generation plants to consumers' premises over the transmission system.
Transmission Charges The charges for the use of the transmission system to deliver electricity to consumers' premises. Transmission charges are regulated by the regulator.
Transmission Licensee The company that is licensed to own the electricity transmission system and deliver electricity from generation plants to consumers' premises. SP PowerAssets Ltd (SPPA) is the Transmission Licensee. SP PowerGrid Ltd (SPPG) is the agent appointed by SPPA to maintain and operate the electricity transmission system.
USEP Price paid by consumers for electricity generated and supplied for consumption.
Vesting Contracts Bilateral contracts between generation companies and MSSL for the production and sale of a specified quantity of electricity at a specified price (known as the "vesting price"). Vesting contracts are imposed by the regulator to curb market power of generation companies.
Vesting Debit/Credit Reflected in MSSL's bill to contestable consumers buying electricity from the wholesale market through MSSL. It is the difference between spot prices and vesting price on the demand that is covered by vesting contract.
Wholesale Electricity Market An electricity market where generation companies compete to sell electricity.
Wholesale Electricity Price (WEP) When buying electricity directly or indirectly from the National Electricity Market of Singapore (NEMS), one’s electricity price comprises of 6 components with USEP being by far the largest of the 6 components. The other components are the Hourly Energy Uplift Charge (HEUC), the Monthly Energy Uplift Charge (MEUC), the Allocated Regulation Price (AFP), PSO admin fees and EMC admin fees.