21 November 2002 – The pace of reform of Singapore’s power market was slowed yesterday with the announcement that the planned sale of its three state-owned power generation companies will be deferred until 2004 at the earliest.

The decision was announced by the government’s domestic investment arm Temasek Holdings Pte. Ltd which said the postponement was due to persistently weak industry conditions.

Temasek said it had earlier planned to privatize its three power generation companies – Tuas Power, Senoko Power and Power Seraya – in 2003 after the local electricity industry restructuring process is completed and the new electricity market starts to function smoothly.

However, although the local industry restructuring is nearing completion, weak market sentiment continues to plague the sector in several countries, especially in the US.

Concerns have been expressed that the size of Singapore’s powers market and the extent of reserve margin made further deregulation risky at this time.