Statute Details
- Title: Electricity (Electricity Transmission Licence — Exemption) Order 2021
- Act Code: EA2001-S361-2021
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Electricity Act (Chapter 89A)
- Enacting Authority: Energy Market Authority of Singapore (with the approval of the Minister for Trade and Industry)
- Commencement: 1 June 2021
- Legislative Instrument No.: SL 361/2021
- Status: Current version as at 27 Mar 2026
- Key Provisions: Section 1 (Citation and commencement); Section 2 (Exemption from section 6(1)(b) of the Electricity Act)
What Is This Legislation About?
The Electricity (Electricity Transmission Licence — Exemption) Order 2021 (“the Order”) is a targeted regulatory instrument made under the Electricity Act (Chapter 89A). In plain terms, it creates a specific exemption from the licensing requirement for electricity transmission for one identified entity and one identified transmission purpose and route.
Under the Electricity Act, electricity transmission is generally regulated through a licensing regime. The practical effect of the Order is that the Energy Market Authority (EMA) allows Tuas Power Generation Pte. Ltd. (“TPG”) not to hold a transmission licence for a particular transmission activity. This is not a general deregulation; it is a narrow carve-out tied to a defined location, defined infrastructure, and defined purpose—supplying electricity for the operation of a jetty.
Because the exemption is statutory and condition-based, it is important for practitioners to understand both (i) what is exempted and (ii) what compliance obligations remain. The Order expressly preserves EMA’s ability to issue directions under section 17 of the Electricity Act, which means the exemption does not remove regulatory oversight; it reallocates the regulatory mechanism from “licence” to “directions”.
What Are the Key Provisions?
1. Citation and commencement (Section 1)
Section 1 provides the formal name of the instrument and states that it comes into operation on 1 June 2021. For legal and compliance purposes, commencement matters because it determines when the exemption becomes effective and therefore when the licensing requirement is displaced for the relevant transmission activity.
2. Exemption from section 6(1)(b) of the Electricity Act (Section 2)
The core provision is Section 2. It states that section 6(1)(b) of the Electricity Act does not apply to TPG in respect of its transmission of electricity from a specified source to a specified destination, for a specified purpose.
What exactly is exempted?
Section 2(1) identifies the transmission activity with a high degree of specificity. The exemption covers TPG’s transmission of electricity from:
- Sea Water Booster Pump Board at 60 Tuas South Avenue 9, Singapore 637607
- to the jetty at Private Lot A3008205 at State Foreshore adjoining Foreshore Lots 4170M and 4230V in Mukim No. 7
- for the purposes of supplying electricity for the operation of the jetty.
This drafting approach is typical of licence-exemption orders: it avoids ambiguity by tying the exemption to a particular physical transmission arrangement and a particular operational use-case. Practitioners should note that the exemption is not framed as “all transmission activities” by TPG; it is limited to the described transmission from the described equipment to the described jetty for the described purpose.
Condition: compliance with EMA directions under section 17 (Section 2(2))
Section 2(2) provides that the exemption is subject to a condition: TPG must comply with any direction given by the Authority under section 17 of the Act, in respect of the transmission of electricity.
This is a crucial legal safeguard. Even though the exemption removes the need for a transmission licence for the specified activity, EMA retains the power to regulate the exempted transmission through directions. In practice, this means:
- TPG remains subject to regulatory control and must monitor compliance with any directions issued.
- The exemption could become practically constrained if EMA issues operational, safety, technical, or compliance directions.
- Failure to comply with directions could expose TPG to enforcement action under the Electricity Act framework (depending on how non-compliance is treated in the Act and any related enforcement provisions).
For lawyers advising TPG or counterparties, the “directions” condition should be treated as an ongoing compliance obligation, not a one-time requirement.
3. Who makes the Order and under what power?
The enacting formula states that the Order is made in exercise of powers conferred by section 8(1) of the Electricity Act, and it is made by EMA with the approval of the Minister for Trade and Industry. This matters for administrative-law and validity analysis: it indicates the statutory pathway for exemptions and confirms that the instrument is not merely an administrative decision but a legislated exemption made under express statutory authority.
4. The exemption is purpose- and location-specific
Although the extract does not reproduce the full text of section 6(1)(b) of the Electricity Act, the structure of the Order makes clear that the exemption is intended to remove the licensing requirement for a specific transmission arrangement. The legal significance is that any expansion beyond the described transmission (e.g., different equipment, different route, different destination, or different purpose) may fall outside the exemption and therefore trigger the licensing requirement again.
How Is This Legislation Structured?
The Order is extremely concise and consists of two operative provisions:
- Section 1 (Citation and commencement): identifies the instrument and sets the commencement date (1 June 2021).
- Section 2 (Exemption from section 6(1)(b) of Act): provides the substantive exemption to TPG for a specified transmission activity and imposes the condition of compliance with EMA directions under section 17.
There are no additional parts, schedules, or detailed procedural provisions in the extract. Practitioners therefore need to read the Order together with the relevant provisions of the Electricity Act—particularly the licensing provision referenced (section 6(1)(b)), the exemption-making power (section 8(1)), and the direction-making power (section 17).
Who Does This Legislation Apply To?
The Order applies to Tu as Power Generation Pte. Ltd. (TPG) only. It is not a class exemption for all electricity users or all generators. The exemption is granted to a single named company.
However, the exemption applies only to TPG in respect of the particular transmission activity described in Section 2(1). Accordingly, the practical scope is limited to the transmission of electricity from the Sea Water Booster Pump Board at the specified address to the specified jetty location, for the operation of the jetty. If TPG undertakes other transmission activities not covered by the description, those activities would not automatically benefit from the exemption.
Why Is This Legislation Important?
1. It clarifies regulatory status for a specific transmission arrangement
For operators and their legal advisers, the key value of this Order is certainty. Electricity transmission is a regulated activity, and licensing requirements can affect project timelines, compliance costs, and contractual arrangements. By granting a statutory exemption, the Order reduces regulatory friction for the specified transmission use-case—supplying electricity to a jetty for its operation.
2. It preserves EMA oversight through section 17 directions
Even though the exemption removes the need for a transmission licence for the specified activity, the condition in Section 2(2) ensures that EMA can still impose requirements through directions. This is important for risk management: the exemption is not a “light-touch” deregulation; it is a different regulatory mechanism.
3. It affects compliance strategy and contract drafting
Practitioners advising TPG (or parties contracting with TPG) should treat the exemption as bounded and conditional. Contractual documents—such as engineering procurement and construction (EPC) contracts, operations and maintenance agreements, and jetty-related service arrangements—may need to reflect:
- the boundaries of the exempted transmission activity;
- the possibility of EMA directions affecting operations, technical standards, or reporting obligations; and
- responsibilities for compliance and audit readiness.
If the transmission infrastructure changes, lawyers should assess whether the change still falls within the “from” and “to” descriptions and the “for the purposes of supplying electricity for the operation of the jetty” purpose. Where changes are material, a further exemption or licensing assessment may be required.
4. It illustrates how Singapore regulates electricity transmission
From a broader regulatory perspective, the Order demonstrates Singapore’s approach: licensing is the default, but exemptions can be granted where appropriate. The legal architecture balances operational practicality with regulatory control by linking exemptions to ongoing compliance with EMA directions.
Related Legislation
- Electricity Act (Chapter 89A) — including:
- Section 6(1)(b): the licensing requirement from which the exemption is granted
- Section 8(1): the power to make exemption orders
- Section 17: EMA’s power to give directions (the condition in Section 2(2) of the Order)
Source Documents
This article provides an overview of the Electricity (Electricity Transmission Licence — Exemption) Order 2021 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.