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Title: The new electricity market of Singapore : competitiveness and market power
Authors: Chng, Clarence Kai Hui
Ng, Yvonne Yalin
Ng, Yun Fang
Keywords: DRNTU::Social sciences::Economic theory
Issue Date: 2015
Abstract: This study examines the level of market power and competitiveness in the National Electricity Market of Singapore (NEMS). First, while the four-firm concentration ratio and the Herfindahl- Hirschman Index show that the NEMS is concentrated, the market shares of the largest energy generation firms are on a downward trend. Second, the Supply Margin Assessment and Residual Supply Index also indicate decreasing market power. Third, the Lerner Index indicates that the NEMS is fairly competitive with low price-cost mark-ups. These indexes indicate limited market power in the NEMS as well as a low potential for firms to exercise market power in the future. Fourth, a log-linear form is used to estimate the coefficient of price-quantity relationships in the electricity demand of contestable consumers. The elasticity of demand is derived through two-stage least squares regression. While results show that the elasticity of demand have decreased since 2004, this is rationalised with vesting contracts in the NEMS and the inflexible nature of contestable consumers’ energy demand.
Schools: School of Humanities and Social Sciences 
Rights: Nanyang Technological University
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:HSS Student Reports (FYP/IA/PA/PI)

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