SP PowerAssets Limited Annual Report Year ended 31 March 2026 Registration No: 200302108D SP PowerAssets Limited Directors’ statement Year ended 31 March 2026 Directors’ statement We are pleased to submit this annual report to the member of SP PowerAssets Limited (the “Company”) together with the audited financial statements for the financial year ended 31 March 2026. Opinion of the Directors In our opinion, (a) (b) the financial statements set out are drawn up so as to give a true and fair view of the financial position of the Company as at 31 March 2026 and the financial performance, changes in equity and cash flows of the Company for the year ended on that date in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”); and at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. Directors The directors in office at the date of this statement are as follows: Mr Stanley Huang Tian Guan Mrs Jeanne Cheng Ms Amelia Champion Mr Lee Choon Kwee (appointed on 1 April 2025) Ms Yew Lay Teng (appointed on 1 July 2025) Mr Marc Lo Tsu Chung (appointed on 1 April 2026) Directors’ interests According to the register kept by the Company for the purposes of Section 164 of the Act, particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and infant children) in shares, debentures, warrants and share options in the Company and in related corporations are as follows: Name of director and related corporations in which interests (fully paid ordinary shares unless otherwise stated) are held Mr Stanley Huang Tian Guan Holdings at beginning of the year/ date of appointment Holdings at end of the year Paragon REIT – units Singapore Airlines Limited SIA Engineering Company Limited Astrea 7 Pte Ltd - 4.125% Class A-1 Secured Bonds due 27 May 2032 (units) CapitaLand China Trust – units Astrea 8 Pte Ltd - 4.35% Class A-1 Secured Bonds due 19 July 2039 Mapletree Industrial Trust – units 323,000 10,000 10,000 40,000 100,000 S$38,000 150,000 − 10,000 10,000 40,000 100,000 S$38,000 350,000 1 SP PowerAssets Limited Directors’ statement Year ended 31 March 2026 Name of director and related corporations in which interests (fully paid ordinary shares unless otherwise stated) are held Mrs Jeanne Cheng Singapore Telecommunications Limited Singapore Technologies Engineering Ltd Astrea 8 Pte Ltd - 6.35% Class A-2 Secured Bonds due 19 July 2039 Astrea 9 Pte Ltd - 3.40% Class A-1 Secured Bonds due 8 August 2040 Astrea 9 Pte Ltd - 5.70% Class A-2 Secured Bonds due 8 August 2040 Mapletree Industrial Trust – units CapitaLand Ascendas REIT – units Ms Amelia Champion CapitaLand Ascott Trust – units CapitaLand Investment Limited CapitaLand Integrated Commercial Trust – units Paragon REIT – units Mapletree Treasury Services Limited - MAPLSP 3.7% Perpetual Bond Singapore Airlines Limited - 5.25% Bonds due 21 March 2034 Singapore Telecommunications Limited Mr Lee Choon Kwee CapitaLand Ascott Trust – units CapitaLand Integrated Commercial Trust – units CapitaLand Investment Limited Ms Yew Lay Teng Astrea VI Pte Ltd - 3.00% Class A-1 Secured Bonds due 18 Mar 2031 Astrea 7 Pte Ltd - 4.125% Class A-1 Secured Bonds due 27 May 2032 (units) Astrea 8 Pte Ltd - 4.35% Class A-1 Secured Bonds due 19 July 2039 Astrea 8 Pte Ltd - 6.35% Class A-2 Secured Bonds due 19 July 2039 CapitaLand Ascendas REIT – units CapitaLand Investment Limited CapitaLand Integrated Commercial Trust – units Mapletree Industrial Trust – units Mapletree Logistics Trust – units Singapore Airlines Limited Holdings at beginning of the year/ date of appointment 11,180 10,000 US$30,000 − − − − 285 5,000 3,900 3,128 S$250,000 US$200,000 1,430 627 1,701 27,800 S$10,000 9,000 S$9,000 US$5,000 3,000 − 2,000 12,000 10,000 3,000 Holdings at end of the year 11,180 10,000 US$30,000 S$58,000 US$5,000 40,000 30,000 285 5,000 3,900 − S$250,000 US$200,000 1,430 627 2,564 27,800 − 9,000 S$9,000 US$5,000 3,000 3,000 2,000 12,000 10,000 3,000 2 SP PowerAssets Limited Directors’ statement Year ended 31 March 2026 Name of director and related corporations in which interests (fully paid ordinary shares unless otherwise stated) are held Ms Loong Hui Chee # Astrea 8 Pte Ltd - 4.35% Class A-1 Secured Bonds due 19 July 2039 Astrea 9 Pte Ltd - 3.40% Class A-1 Secured Bonds due 8 August 2040 CapitaLand Ascendas REIT – units CapitaLand Ascott Trust – units CapitaLand Investment Limited CapitaLand Integrated Commercial Trust – units Mapletree Treasury Services Limited - 3.95% Perpetual Bond Singapore Airlines Limited Singapore Technologies Engineering Ltd Singapore Telecommunications Limited # Resigned on 1 April 2026. Holdings at beginning of the year/ date of appointment S$100,000 − 14,615 160,388 21,531 69,043 S$250,000 20,669 1,495 117,108 Holdings at end of the year S$100,000 S$88,000 14,615 160,388 21,531 71,664 S$250,000 20,669 1,495 117,108 Except as disclosed in this statement, no director who held office at the end of the financial year had interests in shares, debentures, warrants or share options of the Company, or of related corporations, either at the beginning of the financial year, or at the end of the financial year. Neither at the end of, nor at any time during the financial year, was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate. 3 SP PowerAssets Limited Directors’ statement Year ended 31 March 2026 Share options During the financial year, there were: (i) (ii] no options granted by the Company to any person to take up unissued shares in the Company; and no shares issued by virtue of any exercise of option to take up unissued shares of the Company. As at the end of the financial year, there were no unissued shares of the Company under option. On behalf of the Board of Directors MR STANLEY HUANG TIAN GUAN Chairman MR MARC LO TSU CHUNG Director 22 May 2026 4 SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2026 Independent Auditor’s Report For the financial year ended 31 March 2026 Independent Auditor’s Report to the Member of SP PowerAssets Limited Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of SP PowerAssets Limited (the “Company”) which comprise the balance sheet as at 31 March 2026, the income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year then ended, and notes to the financial statements, including material accounting policy information. In our opinion, the accompanying financial statements of the Company are properly drawn up in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”) so as to give a true and fair view of the financial position of the Company as at 31 March 2026 and of the financial performance, changes in equity and cash flows of the Company for the year ended on that date. Basis for Opinion We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For the matter below, our description of how our audit addressed the matter is provided in that context. 5 SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2026 We have fulfilled our responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report, including in relation to the matter. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matter below, provide the basis for our audit opinion on the accompanying financial statements. Goodwill impairment review The Company has recorded an asset of $2,166.8 million which represents goodwill on the acquisition of the transmission business as discussed in Note 6. The goodwill balance is reviewed annually for impairment based on fair value which is determined by discounting expected future cash flows as discussed in Note 6. The assessment of fair value requires significant management judgement in establishing future cash flows, the terminal value and the discount rate. Our audit procedures included assessing the key assumptions used in arriving at the fair value, including the terminal value, forecast future cash flows, and the discount rate. In performing our audit procedures, we assessed the reasonableness of cash flow projections by assessing the reliability of management’s budgeting process, the Company’s own historical data and performance and the market and economic conditions prevailing at the reporting date. In relation to other key inputs, such as the terminal value and discount rate, we compared these inputs to externally available industry, economic and financial data. We further reviewed the adequacy of the disclosure in the financial statements in Note 6 of the financial statements. Other Information Management is responsible for other information. The other information comprises the directors’ statement. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 6 SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2026 Responsibilities of Management and Directors for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and SFRS(I), and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The directors’ responsibilities include overseeing the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. 7 SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2026 • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act. The engagement partner on the audit resulting in this independent auditor’s report is Philip Ling Soon Hwa. Ernst & Young LLP Public Accountants and Chartered Accountants Singapore 22 May 2026 8 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Balance sheet As at 31 March 2026 Note 2026 $ million 2025 $ million Non-current assets Property, plant and equipment Intangible assets Derivative assets Current assets Inventories Trade and other receivables Derivative assets Cash and cash equivalents Total assets Regulatory deferral accounts (“RDA”) debit balances and related deferred tax assets Total assets and RDA debit balances 4 6 7 8 9 7 10 11 12,372.8 2,179.6 14.3 14,566.7 35.7 406.6 2.0 # 444.3 15,011.0 49.1 15,060.1 11,623.8 2,177.6 10.7 13,812.1 34.1 430.6 14.9 # 479.6 14,291.7 18.3 14,310.0 Equity Share capital Hedging reserve Accumulated profits Total equity 12 13 2,512.4 (27.4) 3,119.7 5,604.7 2,512.4 (5.7) 3,033.6 5,540.3 Non-current liabilities Debt obligations Derivative liabilities Deferred tax liabilities Deferred income Deferred construction cost compensation Lease liabilities Current liabilities Debt obligations Derivative liabilities Current tax payable Trade and other payables Lease liabilities Total liabilities Total equity and liabilities RDA credit balances and related deferred tax liabilities Total equity, liabilities and RDA related deferred tax liabilities 14 7 15 16 17 5 14 7 18 5 11 1,118.5 75.8 1,537.8 98.3 247.7 − 3,078.1 52.5 64.3 64.4 5,902.9 4.3 6,088.4 9,166.5 14,771.2 288.9 15,060.1 1,192.1 100.0 1,464.6 107.1 256.2 0.1 3,120.1 927.5 73.0 164.9 4,376.3 0.1 5,541.8 8,661.9 14,202.2 107.8 14,310.0 # Less than $0.1 million The accompanying notes form an integral part of these financial statements. 9 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Income statement Year ended 31 March 2026 Note 2026 $ million 2025 $ million Revenue Other income Expenses - Depreciation of property, plant and equipment - Amortisation of intangible assets - Maintenance - Management fees - Property taxes - Agency fee - Support services - Other operating expenses Operating profit Finance income Finance costs Profit before taxation Tax expense Profit for the year Net movement in RDA balances related to profit or loss and the related deferred tax movement Profit for the year and net movement in RDA balances 19 20 4 6 21 22 23 24 11 2,218.2 109.7 (811.4) (1.2) (140.4) (196.9) (77.6) (33.4) (42.6) (64.8) 959.6 2.7 (196.0) 766.3 (142.1) 624.2 (150.3) 473.9 2,185.8 101.5 (723.9) (1.6) (130.5) (166.6) (66.4) (31.9) (35.1) (64.0) 1,067.3 5.7 (169.3) 903.7 (165.6) 738.1 (155.9) 582.2 The accompanying notes form an integral part of these financial statements. 10 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Statement of comprehensive income Year ended 31 March 2026 Profit for the year and net movement in RDA balances Other comprehensive income Items that are or may be reclassified subsequently to profit or loss: Effective portion of changes in fair value of cash flow hedges, net of tax Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax Other comprehensive income for the year, net of tax Total comprehensive income for the year 2026 $ million 473.9 (22.3) 1.7 (1.1) (21.7) 452.2 2025 $ million 582.2 (6.0) (51.5) 4.3 (53.2) 529.0 The accompanying notes form an integral part of these financial statements. 11 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Statement of changes in equity Year ended 31 March 2026 Note Share capital $ million Hedging reserve $ million Accumulated profits $ million Total equity $ million At 1 April 2024 2,512.4 47.5 2,828.5 5,388.4 Total comprehensive income for the year Profit for the year and net movement in RDA balances − − 582.2 582.2 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax Total other comprehensive income Total comprehensive income for the year − − − − − (6.0) (51.5) 4.3 (53.2) (53.2) − − − − 582.2 (6.0) (51.5) 4.3 (53.2) 529.0 Transaction with owner, recognised directly in equity Contributions by and distribution to owner Dividends declared At 31 March 2025 29 − 2,512.4 − (5.7) (377.1) 3,033.6 (377.1) 5,540.3 The accompanying notes form an integral part of these financial statements. 12 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Statement of changes in equity Year ended 31 March 2026 (cont’d) Note Share capital $ million Hedging reserve $ million Accumulated profits $ million Total equity $ million At 1 April 2025 2,512.4 (5.7) 3,033.6 5,540.3 Total comprehensive income for the year Profit for the year and net movement in RDA balances − − 473.9 473.9 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax Total other comprehensive income Total comprehensive income for the year − − − − − (22.3) 1.7 (1.1) (21.7) (21.7) − − − − 473.9 (22.3) 1.7 (1.1) (21.7) 452.2 Transaction with owner, recognised directly in equity Contributions by and distribution to owner Dividends declared At 31 March 2026 29 − 2,512.4 − (27.4) (387.8) 3,119.7 (387.8) 5,604.7 The accompanying notes form an integral part of these financial statements. 13 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Statement of cash flows Year ended 31 March 2026 Note 2026 $ million 2025 $ million Cash flows from operating activities Profit for the year and net movement in RDA balances Adjustments for: Tax expense Depreciation and amortisation Gain on disposal of property, plant and equipment and intangible assets Deferred income Inventories written down, net Allowance for expected credit loss on trade receivables, net Finance income Finance costs Exchange (gain)/loss, net Net movements in RDA balances related to profit or loss and the related deferred tax movement Changes in working capital: Inventories Trade and other receivables Trade and other payables Cash generated from operations Interest received Income tax paid Net cash generated from operating activities 23 4,6 24 16,17 8 9 21 22 24 11 473.9 142.1 812.6 (0.6) (17.3) 3.2 0.1 (2.7) 196.0 (0.6) 150.3 1,757.0 (4.8) 20.9 (23.9) 1,749.2 0.2 (164.9) 1,584.5 582.2 165.6 725.5 (0.1) (8.8) 3.7 − (5.7) 169.3 1.2 155.9 1,788.8 (6.4) (31.2) 25.5 1,776.7 0.2 (119.4) 1,657.5 Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Proceeds from disposal of property, plant and equipment and intangible assets Net cash used in investing activities (1,377.2) (3.2) 1.1 (1,379.3) (1,159.4) (2.0) 1.2 (1,160.2) Cash flows from financing activities Interest paid Repayment of bond Proceeds from related company loans Dividend paid Payment of principal portion of lease liabilities Net cash used in financing activities 29 5 (55.5) (996.0) 1,238.2 (387.8) (4.1) (205.2) (37.8) (305.0) 226.5 (377.1) (3.9) (497.3) Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 10 # # # # # # # Less than $0.1 million The accompanying notes form an integral part of these financial statements. 14 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Notes to the financial statements These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 22 May 2026. 1 Domicile and activities SP PowerAssets Limited (the “Company”) is incorporated in the Republic of Singapore and has its registered office at 2 Kallang Sector, SP Group Building, Singapore 349277. The principal activities of the Company are those relating to the provision of services in connection with the transmission and distribution of electricity. The immediate and ultimate holding companies are Singapore Power Limited and Temasek Holdings (Private) Limited respectively. Both companies are incorporated in the Republic of Singapore. 2 Basis of preparation 2.1 Statement of compliance The financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (International) (“SFRS(I)”). 2.2 Basis of measurement The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies set out below. 2.3 Functional and presentation currency The financial statements are presented in Singapore dollars, which is the Company’s functional currency. All financial information presented in Singapore dollars has been rounded to the nearest 0.1 million, unless otherwise stated. 2.4 Use of estimates and judgements The preparation of financial statements in conformity with SFRS(I) requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying amounts of assets and liabilities that are not readily apparent from other sources. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. 15 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is discussed below: Impairment of goodwill and indefinite-lived intangible assets Impairment reviews in respect of goodwill and intangible assets are performed at least annually. More regular reviews are performed if changes in circumstances or the occurrence of events indicate potential impairment. The Company uses the present value of future cash flows to determine the recoverable amounts of the cash generating units. In calculating the recoverable amounts, significant management judgement is required in forecasting cash flows of the cash generating units, in estimating the terminal growth values and in selecting an appropriate discount rate. Details of key assumptions made are set out in Note 6. Regulatory deferral accounts Regulatory deferral account debit or credit balances represent timing differences between revenue recognised for financial reporting purposes (as set out in Note 3.13) and revenue earned for regulatory purposes. Revenue earned for regulatory purposes is estimated based on the revenue allowed by the Energy Market Authority (“EMA”) (in accordance with the price regulation framework), taking into consideration the services rendered and volume of electricity delivered to consumers. Note 3.11 sets out the accounting policy for regulatory deferral accounts. 2.5 Changes in accounting policies Adoption of new and revised SFRS(I)s and Interpretation to SFRS(I) The accounting policies adopted are consistent with those of the previous financial year except that in the current financial year, the Company has adopted all the new and revised standards which are effective for annual financial periods beginning on or after 1 April 2025. The adoption of these standards did not have a material effect on the financial performance or position of the Company. 3 Material accounting policy information The accounting policies set out below have been applied consistently for all periods presented in these financial statements, and have been consistently applied by the Company. 16 SP PowerAssets Limited Financial statements Year ended 31 March 2026 3.1 Foreign currencies Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the Company at the exchange rate at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at the reporting date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate prevailing on the date which the fair value was determined. Nonmonetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on translation are recognised in profit or loss, except for differences arising on the translation of qualifying cash flow hedges, which are recognised in other comprehensive income. 3.2 Property, plant and equipment Recognition and measurement Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of selfconstructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located and capitalised borrowing cost. Capitalisation of borrowing costs will cease when the asset is ready for its intended use. Cost may also include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and is recognised net within other income/other operating expenses in profit or loss. 17 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Subsequent costs The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Freehold land and constructionin-progress are not depreciated. During the financial year, the Company conducted an operational efficiency review on the useful life of certain tunnels and the accompanying buildings to better reflect the expected utility of these highquality fixed assets in generating future economic benefits for the Company. The Company revised the estimated useful lives of the tunnels and the accompanying buildings from 40 years to 99 years. The revision in estimate has been applied on a prospective basis from 1 April 2025. The effect of the above revision on depreciation charge in current and future periods are as follows: 2026 $ million 2027 $ million Later $ million Decrease/(increase) in depreciation expense 5.9 5.9 (11.8) The estimated useful lives are as follows: Leasehold land Buildings and tunnels Transformers and switchgear Other plant and machinery - Works and other equipment - Standby electricity generator and other machinery Mains Other fixed assets (principally meters and motor vehicles) Over the term of the lease ranging from 20 to 99 years 30 to 99 years or the lease term, if shorter 30 to 35 years 3 to 10 years 15 to 30 years 30 to 40 years 3 to 10 years Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. 18 SP PowerAssets Limited Financial statements Year ended 31 March 2026 3.3 Intangible assets Goodwill Goodwill arising from acquisition represents the excess of the cost of acquisition over the fair value of identifiable net assets acquired. Subsequent measurement Goodwill is measured at cost less accumulated impairment losses and is tested for impairment on an annual basis as described in Note 3.5. Other intangible assets Computer software is stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful life of 5 years. Computer software development in-progress is stated at cost. No amortisation is provided until it is ready for use. 3.4 Financial instruments Non-derivative financial assets Initial recognition and measurement Financial assets are recognised when, and only when the entity becomes party to the contractual provisions of the instruments. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Trade receivables are measured at the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third party, if the trade receivables do not contain a significant financing component at initial recognition. Subsequent measurement Investments in debt instruments Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the contractual cash flow characteristics of the asset. Financial assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the assets are derecognised or impaired, and through the amortisation process. 19 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank deposits. Non-derivative financial liabilities Initial recognition and measurement Financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs. For financial liabilities at fair value through profit or loss, directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent measurement After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process. Financial liabilities at fair value through profit or loss are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. On derecognition, the difference between the carrying amounts and the consideration paid is recognised in profit or loss. Offsetting Financial assets and liabilities are offset and the net amount presented on the balance sheet when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The rights of offset must not be contingent on a future event and must be enforceable in the event of bankruptcy or insolvency of all the counterparties to the contract. Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. 20 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Derivative financial instruments and hedge accounting The Company holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value and any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognised in profit or loss. The Company designates certain derivatives and non-derivative financial instruments as hedging instruments in qualifying hedging relationships. At inception of designated hedging relationships, the Company documents the risk management objective and strategy for undertaking the hedge. The Company also documents the economic relationship between the hedged item and the hedging instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each other. The Company applies hedge accounting for certain hedging relationships which qualify for hedge accounting. For the purpose of hedge accounting, hedges are classified as: • cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment; or • fair value hedges when hedging the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment Cash flow hedges When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in other comprehensive income and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss. When the hedged item is a non-financial asset, the amount accumulated in equity is included in the carrying amount of the asset when the asset is recognised. In other cases, the amount accumulated in equity is reclassified to profit and loss in the same period that the hedged item affects profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. When a cash flow hedge is discontinued, the cumulative gain or loss previously recognised in other comprehensive income will remain in the cash flow hedge reserve until the future cash flows occur if the hedged future cash flows are still expected to occur or reclassified to profit or loss immediately if the hedged future cash flows are no longer expected to occur. 21 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Fair value hedges Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognised in profit or loss. The hedged item is adjusted to reflect changes in its fair value in respect of the risk being hedged; the gain or loss attributable to the hedged risk is recognised in profit or loss with an adjustment to the carrying amount of the hedged item. 3.5 Impairment Non-derivative financial assets The Company recognises an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss and financial guarantee contracts. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime ECL). For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Company considers a financial asset potentially in default when contractual payments are 180 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. For goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, recoverable amount is estimated each year at the same time. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (“CGU”) exceeds its estimated recoverable amount. 22 SP PowerAssets Limited Financial statements Year ended 31 March 2026 The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGU. Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Such reversal of impairment is recognised in profit or loss. 3.6 Accrued revenue Revenue accrual estimates are made to account for the unbilled amount at the reporting date. 3.7 Provisions A provision is recognised if, as a result of past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. 3.8 Government grants Capital grants are recognised on a straight-line basis and taken to profit or loss over the periods necessary to match the depreciation of the assets purchased with the government grants. Operating grants are presented within other income and are taken to profit or loss on a systematic basis in the same periods in which the expenses are incurred. 3.9 Deferred construction cost compensation Deferred construction cost compensation received to defray costs relating to the construction of an asset are accounted for as a government grant. Note 3.8 sets out the government grant accounting policy. 23 SP PowerAssets Limited Financial statements Year ended 31 March 2026 3.10 Deferred income Deferred income comprises (i) government grant for the purchase of depreciable assets and (ii) contributions made by certain customers towards the cost of capital projects received prior to 1 July 2009. Government grants and customer contributions Deferred income is recognised on a straight-line basis and taken to profit or loss over the periods necessary to match the depreciation of the assets purchased with the government grants and customers’ contribution. 3.11 Regulatory deferral account (“RDA”) debit or credit balances Use of system charges Regulatory deferral account debit or credit balances represent timing differences between revenue recognised for financial reporting purposes and revenue earned for regulatory purposes. Movements in the regulatory deferral account debit or credit balances are recognised in profit or loss over the periods necessary to adjust revenue recognised for financial reporting purposes to revenue earned for regulatory purposes based on services rendered. At the end of each regulatory period, adjustments for amounts to be recovered or refunded are taken to profit or loss as net movement in regulatory deferral account balances. 3.12 Price regulation and licence The Company’s operations in Singapore are regulated under the Electricity Licence for Transmission Licensee issued by the EMA of Singapore. Allowed revenue to be earned from the transmission of electricity is regulated based on certain formulae and parameters set out in the licence, relevant acts and codes. Revenue recognised for financial reporting purposes may differ from revenue earned for regulatory purposes due to volume variances. This may result in adjustments that may increase or decrease tariffs in succeeding periods. Amounts to be recovered or refunded are brought to account as adjustments to net movement in regulatory deferral account debit or credit balances in the income statement in the period in which the Company becomes entitled to the recovery or liable for the refund. The Company’s capital expenditure may differ from its regulatory plan and is subject to a review by the EMA. The results of the variances in capital expenditure may be translated into price adjustments, if any, in the following reset period. The use of system charges are approved by the EMA for a 5-year regulatory period in accordance with the price regulation framework. 24 SP PowerAssets Limited Financial statements Year ended 31 March 2026 3.13 Revenue recognition 3.14 Leases Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring promised services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognised when the Company satisfies a performance obligation by transferring the promised service to the customer, which is when the customer obtains control of the service. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation. Use of system charges Revenue for financial reporting purposes is recognised over time based on tariff billings to customers when the volume of electricity is delivered. The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. As lessor Leases in which the Company does not transfer substantially all the risks and rewards of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term. Rental income under operating leases are recognised in profit or loss over the term of the lease. As lessee The Company applies a single recognition and measurement approach for all leases, except for shortterm leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. (i) Right-of-use assets The Company recognises right-of-use assets at the commencement or on modification date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. 25 SP PowerAssets Limited Financial statements Year ended 31 March 2026 The right-of-use assets are also subject to impairment. Refer to Note 3.5 for the accounting policy. (ii) Lease liabilities At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. (iii) Short-term leases The Company applies the short-term lease recognition exemption to its short-term leases of leasehold land (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases are recognised as expense on a straight-line basis over the lease term. 3.15 Finance income and costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the effective interest method. Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, fair value gains or losses on financial assets and liabilities at fair value through profit or loss, impairment losses recognised on financial assets (other than trade receivables), gains or losses on hedging instruments that are recognised in profit or loss, amortisation of transaction costs capitalised and interest expense on lease liabilities. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method. 26 SP PowerAssets Limited Financial statements Year ended 31 March 2026 3.16 Tax expense Tax expense comprises current and deferred tax. Current and deferred taxes are recognised in profit or loss except to the extent that it relates to items recognised directly in equity or in the other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: - temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and at the time of the transaction (i) affects neither accounting nor taxable profit or loss and (ii) does not give rise to equal taxable and deductible temporary differences; and - taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. In determining the amount of current and deferred tax, the Company takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Company to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. The movement in a deferred tax asset or liability that arises from the temporary differences created as a result of recognising regulatory deferral account balances are presented in the income statement net of the movement in regulatory deferral account balances related to profit or loss. 3.17 Segment reporting The Company determines and presents operating segments based on the information that is provided internally to the chief operating decision maker. The Company has only one operating segment – electricity transmission and distribution, and hence no separate disclosures are made in the financial statements. 27 SP PowerAssets Limited Financial statements Year ended 31 March 2026 3.18 New standards and interpretations not yet adopted A number of new amendments to standards that have been issued but not yet effective have not been early adopted in preparing these financial statements. Other than as described below, the new standards, amendments to standards and interpretations to SFRS(I)s are not expected to have a significant impact on the Company’s financial statements. SFRS(I) 18: Presentation and Disclosure in Financial Statements SFRS(I) 18 will replace SFRS(I) 1-1 Presentation of Financial Statements and applies for annual reporting periods beginning on or after 1 January 2027. The new standard introduces the following key new requirements: • Entities are required to classify all income and expenses into five categories in the statement of profit or loss, namely the operating, investing, financing, discontinued operations and income tax categories. Entities are also required to present a newly-defined operating profit subtotal. Entities’ net profit will not change. • Management-defined performance measures (MPMs) are disclosed in a single note in the financial statements. • Enhanced guidance is provided on how to group information in the financial statements. In addition, all entities are required to use the operating profit subtotal as the starting point for the statement of cash flows when presenting operating cash flows under the indirect method. The Company is still in the process of assessing the impact of the new standard on the primary financial statements and notes to the financial statements. 28 SP PowerAssets Limited Financial statements Year ended 31 March 2026 4 Property, plant and equipment Cost At 1 April 2024 Additions Disposals Transfers Reclassifications At 31 March 2025 Additions Disposals Reclassifications At 31 March 2026 Freehold land $ million 0.3 – – – – 0.3 – – – 0.3 Leasehold land $ million 460.3 0.3 − − 14.8 475.4 5.3 (3.4) 70.8 548.1 Buildings and tunnels $ million 1,913.2 − (7.1) − 144.3 2,050.4 8.2 (0.2) 286.3 2,344.7 Switchgear $ million 3,542.4 0.2 (144.2) 96.5 331.4 3,826.3 1.3 (76.8) 232.9 3,983.7 Transformers $ million 2,027.7 − (15.9) − 219.0 2,230.8 − (26.8) 135.6 2,339.6 Other plant and machinery $ million 626.7 2.1 (5.9) − 66.0 688.9 3.0 (4.3) 101.4 789.0 Mains $ million 8,115.6 − (196.0) − 674.5 8,594.1 − (410.4) 632.4 8,816.1 Other fixed assets $ million 344.0 59.7 (18.9) − 4.3 389.1 58.2 (23.8) 38.7 462.2 Constructionin-progress $ million 1,914.3 1,154.9 − − (1,454.3) 1,614.9 1,484.9 − (1,498.1) 1,601.7 Total $ million 18,944.5 1,217.2 (388.0) 96.5 − 19,870.2 1,560.9 (545.7) − 20,885.4 Accumulated depreciation At 1 April 2024 Depreciation Disposals Transfers At 31 March 2025 Depreciation Disposals Transfers At 31 March 2026 – – – – – – – – – 154.5 11.0 − − 165.5 12.6 (3.4) − 174.7 880.1 81.1 (7.1) − 954.1 89.2 (0.2) − 1,043.1 2,021.9 164.0 (143.8) 93.4 2,135.5 180.1 (76.5) − 2,239.1 814.5 86.1 (15.6) − 885.0 89.2 (26.8) − 947.4 381.6 59.4 (5.6) − 435.4 64.6 (4.3) (0.5) 495.2 3,357.3 287.5 (196.0) − 3,448.8 336.7 (410.4) − 3,375.1 206.1 34.8 (18.8) − 222.1 39.0 (23.6) 0.5 238.0 − − − − − − − − − 7,816.0 723.9 (386.9) 93.4 8,246.4 811.4 (545.2) − 8,512.6 Carrying amounts At 31 March 2025 At 31 March 2026 0.3 0.3 309.9 373.4 1,096.3 1,301.6 1,690.8 1,744.6 1,345.8 1,392.2 253.5 293.8 5,145.3 5,441.0 167.0 224.2 1,614.9 1,601.7 11,623.8 12,372.8 29 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Expenses capitalised The following expenses were capitalised in property, plant and equipment during the year: 2026 $ million 2025 $ million Management fees (staff cost) 119.9 103.5 As at 31 March 2026, property, plant and equipment includes right-of-use assets of $377.6 million (2025: $310.1 million) relating to leasehold land, building and office under leasing arrangements. Details are presented in Note 5. 5 Right-of-use assets/ Lease liabilities Set out below are the carrying amounts of right-of-use assets recognised within property, plant and equipment and the movements during the year: Leasehold land $ million Buildings and tunnels $ million Total $ million At 1 April 2024 Additions Reclassification Depreciation At 31 March 2025 Additions Reclassification Depreciation At 31 March 2026 305.8 0.3 14.8 (11.0) 309.9 5.3 70.8 (12.6) 373.4 4.0 − − (3.8) 0.2 8.2 − (4.2) 4.2 309.8 0.3 14.8 (14.8) 310.1 13.5 70.8 (16.8) 377.6 Set out below are the carrying amounts of lease liabilities (included under trade and other payables) and the movements during the year: At 1 April Additions Accretion of interest Payments At 31 March Current Non-current The maturity analysis of lease liabilities is disclosed in Note 26. 2026 $ million 0.2 8.2 0.2 (4.3) 4.3 4.3 − 4.3 2025 $ million 4.1 − 0.1 (4.0) 0.2 0.1 0.1 0.2 30 SP PowerAssets Limited Financial statements Year ended 31 March 2026 The following are the amounts recognised in profit or loss: Depreciation expense of right-of-use assets Interest expense on lease liabilities Expenses relating to short-term leases (included in other operating expenses) 2026 $ million 16.8 0.2 0.4 17.4 2025 $ million 14.8 0.1 0.3 15.2 The Company had total cash outflow for leases of $4.7 million (2025: $4.3 million) for the financial year ended 31 March 2026. 6 Intangible assets Goodwill on acquisition $ million Deferred expenditure $ million Computer software $ million Computer software development in-progress $ million Total $ million Cost At 1 April 2024 Additions Disposals Transfers Reclassifications At 31 March 2025 Additions Reclassifications At 31 March 2026 2,166.8 − − − − 2,166.8 − − 2,166.8 112.9 1.6 (17.9) (96.6) − − − − − 40.1 − − 0.1 3.5 43.7 − 2.3 46.0 7.8 3.5 − − (3.5) 7.8 3.2 (2.3) 8.7 2,327.6 5.1 (17.9) (96.5) − 2,218.3 3.2 − 2,221.5 Accumulated amortisation At 1 April 2024 Amortisation Disposals Transfers At 31 March 2025 Amortisation At 31 March 2026 − − − − − − − 110.6 0.8 (17.9) (93.5) − − − 39.8 0.8 − 0.1 40.7 1.2 41.9 − − − − − − − 150.4 1.6 (17.9) (93.4) 40.7 1.2 41.9 Carrying amounts At 31 March 2025 At 31 March 2026 2,166.8 2,166.8 − − 3.0 4.1 7.8 8.7 2,177.6 2,179.6 31 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Impairment test for goodwill The Company as a whole is considered a CGU. The recoverable amount of the CGU is based on the higher of fair value less costs to sell and value in use. The recoverable amount of the CGU is determined to be higher than its carrying amount hence no impairment is necessary. Fair value is determined by discounting future cash flows generated from the continuing use of the CGU and is based on the following key assumptions: 1. Cash flows are projected based on a 5-year business plan. 2. Cash flows are discounted using a pre-tax discount rate of 6.13% (2025: 7.04%) per annum that reflects current market assessments of the time value of money and risks specific to the CGU. 3. Terminal value is calculated based on a multiple of 1.3 times (2025: 1.3 times) of the carrying amounts of property, plant and equipment. Expenses capitalised The following expenses were capitalised in intangible assets during the year: 2026 $ million 2025 $ million Management fees (staff cost) 0.6 0.4 32 7 Derivative assets and liabilities SP PowerAssets Limited Financial statements Year ended 31 March 2026 2026 2025 Current: Outstanding notional amounts $ million Assets $ million Liabilities $ million Outstanding notional amounts $ million Assets $ million Liabilities $ million Cross-currency interest rate swaps Interest rate swaps Foreign exchange forwards 114.7 114.7 156.4 − − 2.0 2.0 (58.3) (0.6) (5.4) (64.3) 996.0 1,210.7 187.8 − 13.1 1.8 14.9 (69.4) − (3.6) (73.0) Non-current: Cross-currency interest rate swaps Interest rate swaps Foreign exchange forwards 808.5 1,508.5 69.4 − 14.2 0.1 14.3 (54.8) (19.5) (1.5) (75.8) 923.2 1,623.2 45.2 − 10.7 # 10.7 (89.2) (8.1) (2.7) (100.0) # Less than $0.1 million 33 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Offsetting financial assets and financial liabilities The Company’s derivative transactions are entered into under International Swaps and Derivatives Association (“ISDA”) Master Agreements. The ISDA agreements create a right of set-off of recognised amounts that is enforceable only following an event of default, insolvency or bankruptcy of the Company or the counterparties. As such, these agreements do not meet the criteria for offsetting under SFRS(I) 1-32 Financial Instruments: Presentation. The Company and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously but have the right to set off in the case of default and insolvency or bankruptcy. The Company’s financial assets and liabilities subject to an enforceable master netting arrangement that are not otherwise set-off are as follows: Types of financial assets / liabilities Gross amounts of recognised financial assets / liabilities $ million Related amounts not offset in the balance sheet – financial instruments $ million Net amounts $ million 2026 Derivative assets 16.3 (10.3) 6.0 2025 Derivative assets 25.6 (12.7) 12.9 2026 Derivative liabilities 140.1 (10.3) 129.8 2025 Derivative liabilities 173.0 (12.7) 160.3 34 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Hedge Accounting As at 31 March 2026 and 2025, the Company held various types of derivative financial instruments and formally designated a portion of them in cash flow and fair value hedge relationships for accounting purposes, in accordance with the requirements of SFRS(I) 9. The following table summarises the derivative financial instruments in the balance sheet and the effects of hedge accounting on the Company’s financial position and performance. ----- Hedge instrument ----- ------------------ Hedge item ------------------ Outstanding notional amounts $ million Assets/ (liabilities) $ million Carrying amount of assets/ (liabilities) $ million Financial statement line that includes the hedged item Accumulated amount of fair value adjustments $ million Changes in fair value used for ---- calculating hedge ineffectiveness ---- Hedging instrument $ million Hedged item $ million Hedge ineffectiveness recognised in profit or loss $ million Hedge rates Maturity (Year) 2026 Cash flow hedge Interest rate risk – Finance cost 2,196.4 (22.7) – – – 23.3 (23.3) # 0.8795% - 2.5450% Up to 2030 Foreign exchange risk – Refer to Note 26 under Foreign currency risk 225.8 (4.8) – – – (4.1) 4.1 – CHF/SGD: 1.471 - 1.621 EUR/SGD: 1.409 - 1.502 JPY/SGD: 0.009 - 0.010 USD/SGD: 1.216 - 1.338 Up to 2026 Up to 2028 Up to 2028 Up to 2029 Fair value hedge Interest rate risk 350.0 14.2 (363.7) Debt obligations (14.3) 3.9 (3.9) # 6 month SORA Up to 2032 Foreign exchange risk 923.2 (110.5) (807.3) Debt obligations 115.1 24.0 (24.1) (0.1) Refer to footnotes of Note 14 Up to 2027 # Amount is less than $0.1 million 35 SP PowerAssets Limited Financial statements Year ended 31 March 2026 ----- Hedge instrument ----- ------------------ Hedge item ------------------ Outstanding notional amounts $ million Assets/ (liabilities) $ million Carrying amount of assets/ (liabilities) $ million Financial statement line that includes the hedged item Accumulated amount of fair value adjustments $ million Changes in fair value used for ---- calculating hedge ineffectiveness ---- Hedging instrument $ million Hedged item $ million Hedge ineffectiveness recognised in profit or loss $ million Hedge rates Maturity (Year) 2025 Cash flow hedge Interest rate risk – Finance cost 4,403.1 (0.5) – – – 73.6 (73.6) – 0.4640% - 2.5450% Up to 2030 Foreign exchange risk – Refer to Note 26 under Foreign currency risk Fair value hedge Interest rate risk 233.0 350.0 (4.5) 10.4 – (359.7) – Debt obligations – (10.5) 5.8 12.8 (5.8) (11.6) – 1.2 CHF/SGD: 1.471 - 1.577 CNY/SGD: 0.186 EUR/SGD: 1.409 - 1.653 JPY/SGD: 0.009 - 0.010 USD/SGD: 1.272 - 1.382 6 month SORA Up to 2026 Up to 2025 Up to 2028 Up to 2027 Up to 2028 Up to 2032 Foreign exchange risk 1,919.2 (152.8) (1,759.9) Debt obligations 157.4 48.3 (58.5) (10.2) Refer to footnotes of Note 14 Up to 2027 36 SP PowerAssets Limited Financial statements Year ended 31 March 2026 8 Inventories Cables Transformers Switchgear Spare parts and accessories 2026 $ million 29.6 0.4 3.5 2.2 35.7 2025 $ million 27.7 0.6 3.8 2.0 34.1 In the financial year ended 31 March 2026, inventories recognised as an expense in the income statement amounted to $4.7 million (2025: $3.8 million). The write-down of inventories to net realisable value amounted to $3.2 million (2025: $3.7 million). The utilisation of inventory obsolescence provision upon sale of the inventory items amounted to $0.1 million (2025: $2.3 million). 9 Trade and other receivables 2026 $ million 2025 $ million Trade receivables: - Third parties - Related companies - Immediate holding company Impairment loss Accrued revenue Deposits Prepayments 97.3 81.0 − 178.3 (0.2) 178.1 166.9 0.1 345.1 61.5 406.6 105.7 82.4 7.5 195.6 (0.2) 195.4 176.3 0.2 371.9 58.7 430.6 Trade receivables The average credit term is between 8 to 30 calendar days (2025: between 8 to 30 calendar days). Collateral in the form of bank guarantees and deposits are obtained from counterparties where appropriate. There were no amounts called upon during the year. 37 SP PowerAssets Limited Financial statements Year ended 31 March 2026 The maximum exposure to credit risk for trade receivables at the reporting date by types of customer is as follows: Contestable transmission/ distribution customers Non-contestable transmission/ distribution customers Project-based customers Others 2026 $ million 150.8 12.5 10.2 4.6 178.1 2025 $ million 149.5 14.3 22.3 9.3 195.4 The Company provides for lifetime expected credit losses for all trade receivables using a provision matrix. The provision rates are determined based on the evaluation of collectability and ageing analysis of trade receivables and on the estimation of the management. A considerable amount of estimation is required in assessing the ultimate realisation of these receivables, including the current creditworthiness and the past collection history of each customer. The Company categorises trade receivables for potential write-off on the overdue trade receivables of customers that have failed to make contractual payments for more than 180 days. Where trade receivables have been impaired or written off, the Company continues to engage enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss. The maximum exposure to credit risk for trade receivables by geographic region, relates mainly to Singapore at the reporting date. There is no significant concentration of credit risk of trade receivables. The Company has policies in place to monitor its credit risk. Contractual deposits are collected and sufficient collaterals are obtained to mitigate the risk of financial loss from defaults. The Company’s customers are spread across diverse industries and ongoing credit evaluation is performed on the financial condition of receivables to ensure minimal exposure to bad debts. The ageing of trade receivables at the reporting date is as follows: Not past due Past due 0-30 days Past due 31-90 days Past due 91-180 days Past due more than 180 days 2026 $ million 174.0 2.4 0.7 0.2 1.0 178.3 2025 $ million 192.5 0.8 0.8 0.4 1.1 195.6 38 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Expected credit losses The movement in allowance for expected credit losses of trade receivables computed based on lifetime ECL are as follows: At 1 April Impairment loss recognised Impairment loss utilised Impairment loss written back At 31 March 2026 $ million 0.2 0.1 (0.1) − 0.2 2025 $ million 0.2 0.2 − (0.2) 0.2 Trade and other receivables are denominated predominantly in the functional currency of the Company. 10 Cash and cash equivalents 2026 $ million 2025 $ million Cash at bank and in hand # # As at reporting date, cash and cash equivalents are denominated in the functional currency of the Company. # Less than $0.1 million 11 Regulatory deferral accounts Net movement in RDA balances related to profit or loss RDA related deferred tax movement Net movement in RDA balances related to profit or loss and the related deferred tax movement 2026 $ million (181.1) 30.8 (150.3) 2025 $ million (187.8) 31.9 (155.9) 39 SP PowerAssets Limited Financial statements Year ended 31 March 2026 RDA related deferred tax assets At 1 April 2025 $ million Balances arising in the period $ million (Recovery)/ reversal $ million At 31 March 2026 $ million RDA related deferred tax assets 18.3 18.3 66.1 66.1 (35.3) (35.3) 49.1 49.1 RDA credit balances Deferral of revenue based on service rendered Under recovery of volume variance (108.9) 1.1 (107.8) (379.1) (9.5) (388.6) 197.8 9.7 207.5 (290.2) 1.3 (288.9) RDA debit balances and related deferred tax assets At 1 April 2024 $ million Reclassification $ million Balances arising in the period $ million (Recovery)/ reversal $ million At 31 March 2025 $ million Deferral of revenue based on service rendered Under recovery of volume variance RDA related deferred tax assets RDA credit balances and related deferred tax liabilities 80.7 (0.7) – 80.0 (80.7) 0.7 (13.6) (93.6) – – (15.3) (15.3) – – 47.2 47.2 – – 18.3 18.3 Deferral of revenue based on service rendered Under recovery of volume variance RDA related deferred tax liabilities – – (13.6) (13.6) 80.7 (0.7) 13.6 93.6 87.2 2.9 – 90.1 (276.8) (1.1) – (277.9) (108.9) 1.1 – (107.8) The recovery/reversal period of RDA debit and credit balances are directed by EMA. The Company is currently the sole electricity transmission and distribution company in Singapore. The EMA may not terminate the Company’s Transmission Licence except by giving 25 years’ notice, or otherwise revoking the Transmission Licence in accordance with the Electricity Act (including where the EMA is satisfied that the Company has gone into compulsory liquidation or voluntary liquidation other than for the purpose of amalgamation or reconstruction, or the public interest or security of Singapore requires). The Company therefore considers the exposure on recovery of regulatory deferral debit balances to be minimal. 40 SP PowerAssets Limited Financial statements Year ended 31 March 2026 12 Share capital 2026 No. of shares $ million 2025 No. of shares $ million Ordinary shares Issued and fully-paid, with no par value At 1 April and 31 March 2,512.4 2,512.4 The holder of ordinary shares is entitled to receive dividends as declared from time to time and is entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets. 13 Hedging reserve The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to highly probable forecast transactions. Hedging reserves At beginning of year Effective portion of changes in fair value of cash flow hedges: - Interest rate risks - Foreign exchange risks Net change in fair value of cash flow hedges reclassified to profit or loss, net of tax: - Interest rate risks Net change in fair value of cash flow hedges, on recognition of the hedged items on balance sheet, net of tax: - Foreign exchange risks At end of year 2026 $ million (5.7) (20.0) (2.3) 1.7 (1.1) (27.4) 2025 $ million 47.5 (6.5) 0.5 (51.5) 4.3 (5.7) 41 SP PowerAssets Limited Financial statements Year ended 31 March 2026 14 Debt obligations Principal amount Date of maturity 2026 $ million 2025 $ million Fixed rate notes USD 700 million (1) JPY 7 billion (2) USD 600 million (3) SGD 100 million SGD 250 million Current Non-current November 2025 October 2026 September 2027 May 2029 September 2032 – 52.5 754.8 773.6 102.6 101.5 261.1 258.2 1,171.0 2,119.6 52.5 1,118.5 927.5 58.8 927.5 1,192.1 1,171.0 2,119.6 (1) USD 700 million swapped to SGD 996.0 million (2) JPY 7 billion swapped to SGD 114.7 million (3) USD 600 million swapped to SGD 808.5 million The debt obligations are on bullet repayment terms. Interest rates on debt obligations denominated in Singapore dollars range from 3.40% to 5.07% (2025: 3.40% to 5.07%) per annum. Interest rates on foreign currency debt obligations range from 1.95% to 3.00% (2025: 1.95% to 3.25%) per annum. 42 SP PowerAssets Limited Financial statements Year ended 31 March 2026 A reconciliation of liabilities arising from financing activities is as follows: Debt obligations Current Non-current Interest payable 2025 $ million 927.5 1,192.1 7.4 ----------------- Cash flows ----------------- ------------------------------------------ Non-cash changes ------------------------------------------ 2026 Proceeds $ million – – – Repayment $ million (996.0) – – Interest paid $ million – – (55.3) Additions $ million – − – Repayment $ million – − – Foreign exchange movement $ million (2.1) 20.4 – Changes in fair value $ million 8.4 20.7 – Interest $ million – − 52.0* Reclassification $ million $ million 114.7 (114.7) – 52.5 1,118.5 4.1 Loans from a related company Current 3,633.0 1,238.2 – − 114.4 (116.8) − − 142.4 − 5,011.2 Lease liabilities Current Non-current 0.1 0.1 5,760.2 – – 1,238.2 – (4.1) (1,000.1) − (0.2) (55.5) − 8.2 122.6 − – (116.8) – − 18.3 – − 29.1 − 0.2 194.6 4.2 (4.2) − 4.3 − 6,190.6 * Comprises interest on debt obligations and net change in fair value of cash flow hedges reclassified from equity as disclosed in Note 22. 43 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Debt obligations Current Non-current Interest payable 2024 $ million 199.5 2,068.7 9.0 ----------------- Cash flows ----------------- ------------------------------------------ Non-cash changes ------------------------------------------ 2025 Proceeds $ million – – – Repayment $ million (305.0) – – Interest paid $ million – – (36.8) Additions $ million – − – Repayment $ million – − – Foreign exchange movement $ million 40.3 44.5 − Changes in fair value $ million (2.8) 74.4 – Interest $ million – − 35.2* Reclassification $ million $ million 995.5 (995.5) – 927.5 1,192.1 7.4 Loans from a related company Current 3,289.4 226.5 – (0.9) – (5.5) − − 123.5 − 3,633.0 Lease liabilities Current Non-current 3.9 0.2 5,570.7 – – 226.5 (3.9) – (308.9) (0.1) – (37.8) – − – − – (5.5) – − 84.8 – − 71.6 0.1 − 158.8 0.1 (0.1) − 0.1 0.1 5,760.2 * Comprises interest on debt obligations and net change in fair value of cash flow hedges reclassified from equity as disclosed in Note 22. 44 SP PowerAssets Limited Financial statements Year ended 31 March 2026 15 Deferred taxation Movements in deferred tax assets and liabilities during the year are as follows: Deferred tax liabilities Property, plant and equipment Right-of-use assets Intangible assets Hedging reserve Set off of tax Net deferred tax liabilities At 31 March 2024 $ million (1,483.3) (0.7) (1.6) (9.9) (1,495.5) 20.6 (1,474.9) Recognised in profit or loss (Note 23) $ million 1.0 0.7 (0.1) – 1.6 Recognised in other comprehensive income (Note 23) $ million – – – 10.9 10.9 At 31 March 2025 $ million (1,482.3) – (1.7) 1.0 (1,483.0) 18.4 (1,464.6) Recognised in profit or loss (Note 23) $ million (74.3) (0.7) (0.4) – (75.4) Recognised in other comprehensive income (Note 23) $ million – – – 4.4 4.4 At 31 March 2026 $ million (1,556.6) (0.7) (2.1) 5.4 (1,554.0) 16.2 (1,537.8) Deferred tax assets Deferred income Lease liabilities Set off of tax Net deferred tax assets 19.9 0.7 20.6 (20.6) – (1.5) (0.7) (2.2) – – – 18.4 – 18.4 (18.4) – (2.9) 0.7 (2.2) – – – 15.5 0.7 16.2 (16.2) – 16 Deferred income Customers’ contributions Government grant for depreciable assets Accumulated accretion Movements in accumulated accretion are as follows: At 1 April Accretion for the year At 31 March 2026 $ million 265.9 0.5 (168.1) 98.3 159.3 8.8 168.1 2025 $ million 265.9 0.5 (159.3) 107.1 150.5 8.8 159.3 17 Deferred construction cost compensation Deferred construction cost compensation Amortisation for the year 2026 $ million 256.2 (8.5) 247.7 2025 $ million 256.2 − 256.2 45 SP PowerAssets Limited Financial statements Year ended 31 March 2026 18 Trade and other payables Trade payables: - Third parties - Related companies - Immediate holding company Interest payable Deposits received Advance receipts Accrued operating expenditure Accrued capital expenditure Loans from a related company - Loan balances - Interest payable 2026 $ million 91.0 58.8 21.5 4.1 17.0 169.7 91.6 438.0 4,897.4 113.8 5,902.9 2025 $ million 101.0 56.4 0.5 7.4 18.5 165.7 108.9 284.9 3,536.5 96.5 4,376.3 Payables denominated in currencies other than the Company’s functional currency comprise $3.1 million (2025: $15.2 million) of payables and accruals denominated in United States dollar (“USD”), $0.5 million (2025: $1.9 million) in Japanese yen (“JPY”), $7.2 million (2025: $5.8 million) in Euro (“EUR”) and $0.5 million (2025: $5.4 million) in Swiss Franc (“CHF”). As at 31 March 2026, the loans from a related company are unsecured, repayable on demand and bear interest at rates ranging from 2.18% to 4.19% (2025: 2.37% to 4.19%) per annum. 19 Revenue Revenue comprises use of system charges and the service is transferred over time. Transaction price allocated to remaining performance obligations The Company has applied the practical expedient not to disclose information about its remaining performance obligations as the Company recognises revenue in the amount to which the Company has a right to invoice customers in amounts that correspond directly with the value to the customer of the Company’s performance completed to date. 46 SP PowerAssets Limited Financial statements Year ended 31 March 2026 20 Other income Rental income Leasing income Disbursement recoverable jobs Sale of scrap Accretion of deferred income Grant income Others 2026 $ million 4.9 4.0 34.9 31.9 17.3 5.9 10.8 109.7 2025 $ million 4.7 4.1 37.4 31.0 8.8 6.8 8.7 101.5 21 Finance income Interest income receivable/received from related company Interest income receivable/received from banks 22 Finance costs Interest expense on loans from a related company Interest expense on debt obligations Net change in fair value of cash flow hedges reclassified from equity Loss/(gain) arising from financial assets/liabilities in a fair value hedge: - hedged items - hedging instruments Amortisation of capitalised transaction costs Interest expense on lease liabilities 2026 $ million 2.5 0.2 2.7 2026 $ million 142.4 49.9 2.1 28.0 (27.9) 1.3 0.2 196.0 2025 $ million 5.5 0.2 5.7 2025 $ million 123.5 97.3 (62.1) 70.1 (61.1) 1.5 0.1 169.3 47 SP PowerAssets Limited Financial statements Year ended 31 March 2026 23 Tax expense 2026 $ million 2025 $ million Tax recognised in profit or loss Current tax expense Current year Over provision in respect of prior years Deferred tax expense Origination and reversal of temporary differences Under provision in respect of prior years Total tax expense 65.5 (1.0) 64.5 77.2 0.4 77.6 142.1 165.7 (0.7) 165.0 0.3 0.3 0.6 165.6 Tax recognised in other comprehensive income Before tax $ million 2026 Tax (expense)/ credit $ million Net of tax $ million Before tax $ million 2025 Tax (expense)/ credit $ million Net of tax $ million Effective portion of changes in fair value of cash flow hedges Net change in fair value of: - Cash flow hedges reclassified to profit or loss - Cash flow hedges on recognition of the hedged items on balance sheet (26.9) 2.1 (1.3) (26.1) 4.6 (0.4) 0.2 4.4 (22.3) 1.7 (1.1) (21.7) (7.2) (62.1) 5.2 (64.1) 1.2 10.6 (0.9) 10.9 (6.0) (51.5) 4.3 (53.2) 2026 $ million 2025 $ million Reconciliation of effective tax rate Profit before taxation Tax calculated using Singapore tax rate of 17% (2025: 17%) Non-deductible expenses Non-taxable income (Over)/under provision in respect of prior years - current tax - deferred tax 766.3 130.3 12.7 (0.3) (1.0) 0.4 142.1 903.7 153.6 12.9 (0.5) (0.7) 0.3 165.6 48 SP PowerAssets Limited Financial statements Year ended 31 March 2026 24 Profit for the year The following items have been included in arriving at profit for the year: 2026 $ million 2025 $ million Auditors of the Company - Audit fees - Non-audit fees – Audit-related services Exchange gain/(loss), net Gain on disposal of property, plant and equipment and intangible assets # Less than $0.1 million 0.1 # 0.6 0.6 0.1 0.2 (1.2) 0.1 25 Related parties For the purpose of the financial statements, parties are considered to be related to the Company if the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. The immediate and ultimate holding companies are Singapore Power Limited and Temasek Holdings (Private) Limited (“Temasek”) respectively. These companies are incorporated in the Republic of Singapore. Temasek is an investment company headquartered in Singapore with a diversified investment portfolio. Accordingly, all the subsidiaries of Temasek are related corporations and are subject to common control. The Company engages in a wide variety of transactions with related corporations in the normal course of business on terms similar to those available to other customers. Such transactions include but are not limited to sales and purchases of power, provision of consultancy and engineering services, leasing of cables and ducts, agency services and financial and banking services. The related party transactions are carried out on terms negotiated between the parties which are intended to reflect competitive terms. All electricity supplied to companies in the Temasek group are related party transactions. The Temasek group has extensive interests in a large number of companies. As the Company’s rates for electricity transmission and distribution are based on tariffs approved by the EMA, the Company has concluded that it is not meaningful to present information relating to such revenue. Other than as disclosed elsewhere in the financial statements, transactions with related parties are as follows: 49 SP PowerAssets Limited Financial statements Year ended 31 March 2026 2026 $ million 2025 $ million Related companies - management fee expenses - maintenance expenses - agency fee expenses - support service expenses - service expenses, including leases - leasing income - service income - trustee fee income Immediate holding company - maintenance expenses - support service expenses (317.4) (20.7) (33.4) (2.4) (4.8) 4.0 3.1 0.4 (21.4) (40.2) (270.5) (16.2) (31.9) (1.8) (4.5) 4.1 2.7 0.3 (19.2) (33.3) 26 Financial risk management The Company’s activities expose it to foreign currency, interest rate, credit and liquidity risks which arise in the normal course of business. Generally, the Company’s overall objective is to manage and minimise exposure to such risks. The Company adopts the risk management policies and guidelines established by its immediate holding company, Singapore Power Limited, and has established processes for monitoring compliances with such policies. The Company uses forward foreign currency exchange contracts, interest rate swaps and cross currency interest rate swaps to manage its exposure to foreign currency and interest rate risks respectively. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The material financial risks associated with the Company’s activities are each described below, together with details of the Company’s policies for managing the risks. Foreign currency risk The Company is exposed to foreign currency risks from borrowing activities, purchase, supply and installation contracts, and trade creditors which are denominated in a currency other than Singapore dollars. The objective of the Company’s risk management policies is to mitigate foreign exchange risk by utilising various hedging instruments. The Company therefore considers avoidable currency risk exposure to be minimal for the Company. The Company enters into cross-currency interest rate swaps to manage exposures arising from foreign currency borrowings including the United States Dollar (“USD”) and Japanese Yen (“JPY”). Under crosscurrency interest rate swaps, the Company agrees to exchange specified foreign currency principal and interest amounts at an agreed future date at a pre-determined exchange rate. Such contracts enable the Company to mitigate the risk of adverse movements in foreign exchange rates. Except where a foreign currency borrowing is taken with the intention of providing a natural hedge by matching the underlying cash flows, all foreign currency borrowings are swapped back to Singapore dollars. For foreign currency swaps that do not meet the requirements of hedge accounting, changes in fair value are recorded in profit or loss. 50 SP PowerAssets Limited Financial statements Year ended 31 March 2026 The Company uses forward foreign currency exchange contracts to substantially hedge foreign currency risk attributable to purchase transactions. The maturities of the forward foreign currency exchange contracts are intended to match the forecasted progress payments of the supply and installation contracts. Whenever necessary, the forward foreign exchange contracts are either rolled over at maturity or translated into foreign currency deposits, whichever is more cost efficient. As at 31 March 2026, the Company has outstanding forward foreign currency exchange contracts with notional amounts of approximately $225.8 million (2025: $233.0 million). The net fair value of forward foreign currency exchange contracts as at 31 March 2026 is $4.8 million net liabilities (2025: $4.5 million net liabilities) comprising assets of $2.1 million (2025: $1.8 million) and liabilities of $6.9 million (2025: $6.3 million). These amounts were recognised as derivative assets and liabilities respectively. Sensitivity analysis for foreign currency risk As at 31 March 2026 and 2025, if the functional currency of the Company had moved against each of the currencies as illustrated in the table below, with all other variables held constant, equity would have been affected as below: Equity (hedging reserve) $ million Judgements of reasonably possible movements – increase/(decrease) 2026 USD Increase of the SGD by 5 per cent against US Dollar Decrease of the SGD by 5 per cent against US Dollar EUR Increase of the SGD by 8 per cent against EUR Dollar Decrease of the SGD by 8 per cent against EUR Dollar JPY Increase of the SGD by 13 per cent against Japanese Yen Decrease of the SGD by 13 per cent against Japanese Yen CHF Increase of the SGD by 6 per cent against Swiss Franc Decrease of the SGD by 6 per cent against Swiss Franc (3.6) 3.6 (4.8) 4.8 (5.5) 5.5 (1.2) 1.2 51 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Equity (hedging reserve) $ million Judgements of reasonably possible movements – increase/(decrease) 2025 USD Increase of the SGD by 5 per cent against US Dollar Decrease of the SGD by 5 per cent against US Dollar EUR Increase of the SGD by 9 per cent against EUR Dollar Decrease of the SGD by 9 per cent against EUR Dollar JPY Increase of the SGD by 14 per cent against Japanese Yen Decrease of the SGD by 14 per cent against Japanese Yen CHF Increase of the SGD by 6 per cent against Swiss Franc Decrease of the SGD by 6 per cent against Swiss Franc (3.1) 3.1 (4.4) 4.4 (7.5) 7.5 (1.8) 1.8 The judgements of reasonably possible movements were determined using statistical analysis of the 90th percentile of the best and worst expected outcomes having regard to actual historical exchange rate data over the previous five years. Management considers that past movements are a reasonable basis for estimating possible movements in foreign currency exchange rates. Interest rate risk The Company manages its interest rate exposure by maintaining a significant portion of its debt at fixed interest rates. This is done by the (i) issuance of fixed rate debt; (ii) use of interest rate swaps to convert floating rate debt to fixed rate debt; or (iii) use of cross-currency interest rate swaps to convert fixed or floating rate non-functional currency denominated debt to fixed rate functional currency denominated debt. The use of derivative financial instruments relates directly to the underlying existing and anticipated indebtedness. As at 31 March 2026, the Company has interest rate and cross-currency swaps with notional amount of $2,546.4 million (2025: $4,753.1 million). The Company classifies these swaps as cash flow and fair value hedges. The net fair value of swaps as at 31 March 2026 is $119.0 million net liabilities (2025: $142.9 million net liabilities) comprising assets of $14.2 million (2025: $23.8 million) and liabilities of $133.2 million (2025: $166.7 million). These amounts were recognised as derivative assets and liabilities respectively. The Company’s excess funds are principally invested in bank deposits of varying maturities to match its cash flow needs, or deposited with a related company. 52 SP PowerAssets Limited Financial statements Year ended 31 March 2026 At the reporting date, if interest rates had moved as illustrated in the table below, with all other variables held constant, profit before taxation and equity would have been affected as follows: Judgements of reasonably possible movements – increase/(decrease) 2026 Increase with all other variables held constant Decrease with all other variables held constant 2025 Increase with all other variables held constant Decrease with all other variables held constant Profit before taxation $ million (9.3) 9.3 (4.1) 4.0 Equity (hedging reserve) $ million 51.3 (55.9) 72.5 (78.3) The judgements of reasonably possible movements were determined using statistical analysis of the 90th percentile of the best and worst expected outcomes having regard to actual historical interest rate data over the previous five years based on the six month Singapore Overnight Rate Average, three month USD Secured Overnight Financing Rate and six month JPY Tokyo Overnight Average Rate. Management considers that past movements are a reasonable basis for determining possible movements in interest rates. As at 31 March 2026, the movements in interest rates used in the table above are as follows: • Singapore interest rates – 255 basis points (2025: 211 basis points) • United States interest rates – 290 basis points (2025: 324 basis points) • Japan interest rates – 26 basis points (2025: 21 basis points) Credit risk Credit risk is the risk of financial loss to the Company if a customer or a counterparty to a financial instrument fails to meet its contractual obligations. This arises principally from the Company’s financial assets, comprising cash and cash equivalents, trade and other receivables and derivative assets. The Company provides for lifetime ECL for all trade receivables using a provision matrix as disclosed in Note 9. For other receivables, the Company considers the probability of default upon initial recognition of an asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. As at 31 March 2026 and 2025, other receivables have been assessed to be subject to immaterial ECL. Surplus funds are invested in interest bearing deposits with financial institutions with good credit ratings assigned by international credit rating agencies. Counterparty risks are managed by limiting exposure to any individual counterparty. The Company’s portfolio of financial instruments is entered into with a number of creditworthy counterparties, thereby mitigating concentration of credit risk. The Company held cash and cash equivalents of less than $0.1 million (2025: less than $0.1 million) which represents its maximum exposure on these assets. 53 SP PowerAssets Limited Financial statements Year ended 31 March 2026 Counterparty risks on derivatives are generally restricted to any gain or loss when marked to market, and not on the notional

新 春 将 至 义 工 献 关 怀 九 旬 妇 喜 获 礼 包 祝 福 满 满 李 志 扬 报 道 leecy@sph.com.sg 一 份 礼 包 的 意 义 不 只 是 当 中 物 品 的 价 值 , 在 九 旬 独 居 老 妇 陈 秀 芳 的 眼 中 , 它 装 载 的 更 多 是 社 会 给 予 自 己 的 关 怀 和 温 暖 。 昨 天 下 午 1 时 许 , 独 自 住 在 芽 笼 峇 鲁 一 房 式 租 赁 组 屋 的 陈 秀 芳 (93 岁 ) 从 来 自 新 加 坡 能 源 集 团 的 义 工 手 中 接 过 两 袋 礼 包 , 里 面 装 有 米 、 食 品 罐 头 、 搓 手 液 , 以 及 口 罩 等 物 品 。 老 人 家 精 神 不 错 , 眼 神 也 带 着 笑 意 , 一 直 招 呼 上 门 探 访 的 义 工 等 人 。 由 于 听 力 不 佳 , 加 上 华 语 不 流 利 , 陈 秀 芳 受 访 时 全 程 由 独 生 女 黄 玉 珍 (72 岁 ) 代 为 转 述 。 黄 玉 珍 说 , 因 疫 情 而 常 待 在 家 的 母 亲 喜 欢 与 人 互 动 , 尤 其 是 时 不 时 登 门 拜 访 的 义 工 。“ 义 工 常 带 她 到 楼 下 运 动 , 出 去 走 走 …… 还 有 去 滨 海 湾 花 园 和 星 耀 樟 宜 逛 街 。” 不 过 , 黄 玉 珍 也 无 奈 地 说 , 自 疫 情 暴 发 后 , 母 亲 的 双 腿 越 来 越 无 力 , 已 鲜 少 出 门 活 动 , 大 部 分 时 间 都 待 在 家 看 电 视 。 在 芽 笼 峇 鲁 触 爱 乐 龄 活 动 中 心 担 任 职 员 兼 义 工 的 谢 汉 辉 (58 岁 ) 说 , 他 和 其 他 义 工 在 疫 情 前 常 会 带 陈 秀 芳 外 出 , 因 她 很 喜 欢 走 动 。 他 也 提 到 , 陈 秀 芳 的 女 儿 常 回 家 探 望 , 因 此 老 人 家 虽 然 独 居 , 也 不 会 特 别 孤 独 。 “ 她 的 女 儿 经 常 会 来 看 她 , 所 以 我 也 是 偶 尔 看 看 , 只 要 她 平 安 就 好 。” 新 能 源 集 团 送 礼 包 今 年 让 1 万 弱 势 家 庭 受 惠 昨 天 领 取 礼 包 的 还 有 居 住 在 大 巴 窑 西 — 汤 申 一 房 式 租 赁 组 屋 的 许 亚 妹 (73 岁 )。 已 经 退 休 的 许 亚 妹 目 前 没 有 收 入 , 对 她 来 说 礼 包 中 的 物 品 不 仅 实 用 , 也 能 帮 助 减 少 日 常 开 销 。“ 这 些 东 西 都 很 好 , 都 很 有 用 , 尤 其 是 口 罩 和 洗 手 液 。” 新 加 坡 能 源 集 团 昨 天 在 公 司 的 “Power Packs” 常 年 慈 善 活 动 中 派 发 了 2800 份 爱 心 礼 包 , 目 标 是 在 今 年 内 让 1 万 个 弱 势 家 庭 受 惠 。 今 年 领 取 礼 包 的 受 惠 者 由 触 爱 乐 龄 活 动 中 心 等 社 会 服 务 机 构 和 基 层 组 织 推 荐 , 近 150 名 来 自 新 加 坡 能 源 集 团 的 义 工 参 与 包 装 和 派 送 礼 包 。 居 住 在 芽 笼 峇 鲁 一 房 式 租 赁 组 屋 的 陈 秀 芳 ( 左 ) 昨 天 从 两 名 新 能 源 集 团 义 工 手 中 , 领 取 两 袋 装 有 食 品 罐 头 、 搓 手 液 , 以 及 口 罩 的 礼 包 。 ( 新 能 源 集 团 提 供 ) 新 能 源 集 团 总 裁 黄 天 源 说 : “ 佳 节 将 至 , 我 们 的 年 度 慈 善 活 动 来 得 刚 刚 好 。”

O OU UR R F FU UT TU UR RE E O OU UR R MII IS SS SII IO ON N SINGAPORE POWER ANNUAL REPORT 2015/16 CONTENTS 2 Corporate Profile Our Mission Our Values 3 Financial Highlights 6 Chairman’s Message 10 Board of Directors 14 Senior Management 15 Group Structure 16 Corporate Governance 19 Risk and Business Continuity Management 20 Certification and Accreditation 21 Awards 22 Remembering Lee Kuan Yew 24 Reliability Powerhouse 32 Driving Innovation 38 Striving for Service Excellence 42 An Energised Workplace 48 Promoting a Culture of Safety 54 Powering a Better World 63 Financial Summary CORPORATE PROFILE OUR MISSION Singapore Power (SP) Limited is a leading energy utility company in Asia Pacific. One of Singapore’s largest corporations, SP recorded revenues of We provide reliable and efficient energy utility services to enhance the economy and the quality of life. S$4.0 billion and assets of S$16.7 billion in FY 15/16. SP owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia. It also owns and operates the world’s largest underground district cooling network in Singapore, and is setting up district cooling operations in China. More than 1.4 million industrial, commercial and residential customers in Singapore benefit from SP’s world-class transmission, distribution and market support services. The SP networks in Singapore are amongst the most reliable and cost-effective worldwide. In Australia, SP’s 40 per cent-owned SGSPAA, a diversified energy utility company, and 31.1 per cent-owned AusNet Services, which is publicly listed on the Australian and Singapore Stock Exchanges, collectively serve 3.9 million customers. OUR VALUES COMMITMENT • We commit to creating value for our customers, our people, and our shareholders. • We uphold the highest standards of service and performance. INTEGRITY • We act with honesty. • We practise the highest ethical standards. PASSION • We take pride and ownership in what we do. TEAMWORK • We support, respect and trust each other. • We continually learn, and share ideas and knowledge. 2 FINANCIAL HIGHLIGHTS REVENUE FROM CONTINUING OPERATIONS (S$million) 4,793 4,840 3,964 TOTAL ASSETS (S$million) 16,980* 15,635 16,716 FY2013/14 FY2014/15 FY2015/16 FY2013/14 FY2014/15 FY2015/16 NET PROFIT AFTER TAX (S$million) 922* 991 924 SHAREHOLDERS’ EQUITY (S$million) 9,221* 8,528 9,088 FY2013/14 FY2014/15 FY2015/16 FY2013/14 FY2014/15 FY2015/16 ECONOMIC VALUE ADDED (EVA) (S$million) 235 284 300 RETURN ON EQUITY (%) 10.4* 11.2 10.5 FY2013/14 FY2014/15 FY2015/16 FY2013/14 FY2014/15 FY2015/16 * Restated 3 BOOSTING PRODUCTIVITY AT WORK • Embarked on more than 100 improvement initiatives in 2015, with projected savings of S$16 million when implemented • Leaner work processes from the use of new technology tools and applications has reduced manpower and manhours required. One example is the Automated Coiling Machine which sees fewer people needed (from 7 men to 4 men) and less time used (from 60 minutes to about 30 minutes) to re-coil cables • Pilot project to put Lean tools into practice at Pasir Panjang District Office Inventory Management store led to 5 per cent reduction in man-hours, and S$1.3 million in outright savings S$16 million in projected savings with the implementation of more than 100 improvement initiatives From Left Michael Tan Mien Duan Deputy Director, Productivity (Maximus) Herman Bin Harun Storekeeper, Procurement Gurcharan Singh Manager, Procurement Tommy Lim Soon Kong Deputy Director, Procurement Law Chin Ho Head, Procurement CHAIRMAN’S MESSAGE ”The year turned out to be a very memorable one not only for us at SP but also for Singapore as we journeyed through unprecedented developments, surmounted difficult challenges and recorded notable achievements while continuing to forge ties that further advanced our mission to improve quality of life.” n behalf of the Board of O Directors of Singapore Power (SP), it gives me great pleasure to present the SP Annual Report 2015/2016. The year turned out to be a very memorable one not only for us at SP but also for Singapore as we journeyed through unprecedented developments, surmounted difficult challenges and recorded notable achievements while continuing to forge ties that further advanced our mission to improve quality of life. 2015 was a double joy for us as we celebrated our 20th Anniversary while Singapore celebrated her 50th birthday. We proudly participated in all major National Day events including the historic National Day Parade and made sure all related events were backed by 24/7 power reliability. Our SG50 Gift of Power to Singapore provides the public with power on the go, with free charging of mobile devices at 200 locations island-wide. We continue to give back to the community through our 20 Good Deeds of community service and volunteer outreach programmes to commemorate our 20th anniversary, which was very well received and exceeded expectations. The SP family stood with the nation at the passing of Singapore’s founding Prime Minister Lee Kuan Yew, joining millions in the tremendous outpouring of tributes to a luminary who has and will continue to inspire generations. To commemorate the first year anniversary of his passing, we collaborated with Mapletree Investments to publish and distribute a workbook, “Follow That Rainbow, Go Ride It” for secondary school students so that they may build on Mr Lee’s legacy to create an even brighter future for themselves, their families and the country. At SP, we are focused on meeting the needs of future generations of customers in a rapidly changing environment, through innovation and collaborations within the power industry and across sectors. Our unwavering commitment is to uphold the standing of Singapore’s power network as one of the top utility networks in the world, and to create sustainable solutions to improve quality of life. FINANCIAL PERFORMANCE For the financial year 2015/2016, the Group’s net profit was S$924 million. Strong operating performance from our transmission and distribution businesses contributed to this result. There was also higher profit contribution from our investment in Australia, mainly AusNet Services, largely due to one-off tax consolidation benefit arising from a corporate restructuring. Despite a volatile market backdrop, we successfully raised a benchmark 10-year US$700 million S144A bond in November 2015 to refinance maturing debt and fund future capital expenditure. This issuance, our first S144A bond since 2003, was well received 6 by a diverse range of high quality investors, including a strong participation from US institutional investors, resulting in a strong order book of US$1.4 billion. The strong endorsement by investors reflected their confidence in our high credit quality. POWERING SUSTAINABILITY Singapore’s electricity and gas networks have remained among the world’s highest-rated in reliability and efficiency. Last year, the average electricity customer experienced 0.56 minute of electricity interruption. We achieved zero transmission minutes loss, which means there was no supply interruption at the electricity transmission network level. The average gas customer experienced 0.16 minute of gas interruption. We continued to expand our gas transmission network by adding pipelines to ensure that gas is delivered to our customers safely and reliably. District cooling is another important area where we are leading the charge in sustainable development, as buildings are among the biggest energy consumers in Singapore. Singapore District Cooling (SDC), a wholly owned subsidiary of SP, owns and operates the world’s largest underground district cooling network. In March 2016, the entire Marina Bay district cooling network was commissioned with the completion of the third phase of capacity expansion. Its two main plants and one satellite plant supply chilled water for air conditioning in the Marina Bay financial district, including Marina Bay Sands Integrated Resort, Marina Bay Financial Centre and Gardens by the Bay. Customers have reported energy savings of up to 40 per cent. We look forward to welcoming new customers in the district, and we are currently working with the Urban Redevelopment Authority and Building and Construction Authority to expand the use of district cooling in Singapore. In China, we are building a district cooling system for CapitaLand’s Raffles City development in Chongqing. In our effort to maximise land utilisation to meet Singapore’s growing urban environment, our first 66kV underground transmission substation at Changi Business Park was commissioned on 31 December 2015. We will continue to explore more underground power installations for the future. Our cross island Transmission Cable Tunnel Project is 85 per cent complete and Jurong Island- Pioneer Cable Tunnel project is 40 per cent complete. The tunnels are a cost-effective long-term solution for the provision of reliable, quality electricity supply to the future. Our engineering capabilities and commitment to sustainable development in Singapore received a major endorsement when the public voted three of our projects as Singapore’s top 50 engineering feats. All three SP entries to the Institution of Engineers Singapore’s competition made the list – underground district cooling system, underground cable tunnels and world-class electricity grid. AT YOUR E-SERVICE We continue to uphold our “One Call, One Click, One Stop, in One Day” promise to all customers. Besides providing convenience to our customers, we empowered them in our broader drive for sustainability and in using energy efficiently, while helping them bring down the cost of their utilities. Following a successful pilot programme last year in which 27,000 households had access to e-services that allowed them to keep closer tabs on their energy and water consumption, we have rolled out the service to all our customers. With the service, our customers will be able to view their consumption patterns, set their own consumption targets, and reduce their energy consumption. Since May 2016, our SP Services mobile application, website and e-bill summary have included user-friendly features that allow consumers to audit their own energy consumption and even compare it against their neighbours’. It also provides tips for efficient energy and water use. These new features have been incorporated into our newlydesigned SP Services bill which is simpler and clearer, with information at a glance, easy ways to track consumption, and ways to bring down both consumption and cost. 7 CHAIRMAN’S MESSAGE In supporting the move towards full retail competition and enabling customers a greater choice of power retailers, SP has rolled out approximately 84,000 Advanced Metering Infrastructure meters which measures contestable customers’ usage at half-hour intervals, to help consumers decide on the best service provider for them. So far, we have achieved a read rate of about 99.7 per cent. PEOPLE POWER Over the course of the year, we continue to build on investments we have made in growing the talent pipeline. We have since 2012 awarded more than 100 scholarships to students with a passion for engineering in the energy sector as we seek to broaden our talent pool. Our Engineering Development for Graduates (EDGE) programme, which was started in 2013, has provided 121 fresh graduates with structured training and job rotation to critical operations to gain broad-based exposure and diverse technical expertise. We remain committed to staff upgrading, handing out 419 sponsorships for SP staff to pursue part-time education since 2002, including four who are pursuing their Master’s degree overseas. Towards strengthening our engineering bench, we now have 100 certified Professional Engineers, who make up 18.5 per cent of our total engineering pool, above the national average of 1.7 per cent. We will continue to sponsor the certification journey for more of our engineers. SP has made strides in creating a culture of innovation among our employees. On the digital frontier, we have made technology tools available to all staff, automating processes and approvals, and streamlining workflows. This is part of a continuing effort to create an agile, collaborative and mobile workforce. We embarked on new projects such as an enhanced electronic vendor procurement management system, a condition monitoring app to ensure power supply reliability and a cable and gas pipeline patrolling app. These initiatives helped to boost productivity and improve the quality of life at work. We also set out to devise leaner work processes and undertook more than 100 improvement initiatives in 2015, with projected savings of S$16 million when implemented. These were ground-up initiatives by staff which contributed towards more productive ways of working. We are boosting our capabilities from within, through initiatives that allow our employees to take charge of their own development. With the launch of the iTalent human resource tool in January 2016 and its inclusion on their mobile tablets, employees have easy access to learning and development resources, channels for engagement and feedback, and their performance appraisals. This promotes “development on the go”, allows employees to stay engaged, and will have a positive impact on productivity. ACCELERATING GROWTH We are seeing rapid changes in the power industry. On the horizon, we foresee that sustainability, energy technology and urbanisation are key global trends that will shape the future of our business. We have developed strategies to leverage on solutions and innovations that can help us to better serve customers’ needs and lifestyles. Supported by Singapore’s Economic Development Board, SP launched the S$30 million SP Centre of Excellence in April 2015 to drive the innovation and commercialisation of nextgeneration network technologies. During the Singapore International Energy Week in October 2015, the SP Centre of Excellence entered into a Memorandum of Understanding with the Omnetric Group, 3M Singapore and the Economic Development Board under the Singapore Power Energy Advanced Research and Development programme to build and pilot next-generation technologies to enhance Singapore’s power value chain. Other initiatives that we are working on include converting our fleet of vehicles to electric vehicles and developing solar and storage solutions at our facilities. We are also going underground – building underground substations and housing our network cables deep beneath in the cable tunnels – to optimise space in our landscarce city. SAFETY AS A PRIORITY Safety affects the well-being of our workers as well as the public, the 8 working environment and project costs, and remains an important focus for us. Our Gas Safety Awareness campaign, launched in August 2015, aims to raise public awareness on the risks and ways to prevent accidents arising from gas fires. The campaign leverages touch points such as the Ministry of Manpower Foreign Domestic Worker training sessions, community events, grassroots platforms and schools. We have participated in 13 community road shows to date. The campaign videos have garnered more than 1.19 million views on YouTube as of March 2016. We are happy to have seen our efforts in this area show tangible results. Of particular note is our Lost Time Injury Frequency Rate (LTIFR), which dropped to 0.77 per million man-hours in FY15/16, a significant improvement on 1.10 the year before. This improvement reflects the commitment to safety that we have in place and the constant improvements we have made in our safety transformation journey. It has also brought us closer to our “world-class” target LTIFR of 0.57 per million man-hours several years ahead of schedule. Our contractors play a critical role in creating a safety culture for all. In the past year, we established targeted programmes and processes to help our contractors uphold safe work practices. The Hand Safety Campaign exemplifies our efforts to engage contractors to improve safety processes. The campaign was launched in September 2015 to promote safe practices of hand-related operations and prevent hand and finger injury among workers. Activities carried out include conducting in-house training on hand safety to increase awareness. SP PowerGrid’s Cable Tunnel team’s Gold Award for Health and Safety 2016 from the Royal Society for Prevention of Accidents (RoSPA) affirmed our steady efforts. The award is an endorsement of the Cable Tunnel team’s strategic initiatives, the support of management and our collective passion for raising safety standards in the tunneling industry. Our shared commitment to safety, and ensuring we are all aligned in terms of safety requirements and expectations, means our workers are safe, our projects are well managed, and our risks are contained. THE POWER OF GOOD SP celebrated SG50 by presenting Singapore with a Gift of Power in July 2015, providing free charging of mobile devices at 200 locations island-wide. Just as SP serves the nation by striving to keep the lights on 24/7, the Gift of Power affirms SP’s commitment to always be there for Singapore, by helping Singaporeans to stay connected. This was one of two major projects SP undertook to celebrate Singapore’s 50th birthday. The other was the Love from the Stars charity gala dinner and concert in May 2015 featuring international artistes like Jackie Chan. The event raised close to S$6.4 million for 6 charities, which provided assistance to about 160,000 beneficiaries. These two projects were part of 20 Good Deeds, a volunteerled initiative to give back to the community through 20 acts of community service for SP’s 20th anniversary in 2015. These activities included programmes to encourage energy-efficiency, outings with underprivileged children and visits to homes and activity centres for the elderly. The activities were driven by our staff volunteers – SP Heart Workers – and every business unit spearheaded at least one good deed. Collectively, we far exceeded our target, rounding off the year with a grand total of 30 good deeds and putting in almost 9,000 volunteer hours across the events. IN APPRECIATION On behalf of the Board of Directors, I would like to thank the management and staff union, as well as regulators, government agencies and shareholder, for their valuable advice and support in the last financial year. To the members of the Board, thank you for your guidance and counsel. To my colleagues at Singapore Power, thank you for your tireless efforts and I look forward to powering tomorrow’s possibilities with you. MOHD HASSAN MARICAN Chairman July 2016 9 BOARD OF DIRECTORS TAN SRI MOHD HASSAN MARICAN HO TIAN YEE TAN CHEE MENG Tan Sri Mohd Hassan Marican is the Chairman of Singapore Power Ltd. He joined the Board on 15 February 2011 and was appointed Chairman on 30 June 2012. Tan Sri Hassan is also the Chairman of Pavilion Energy Pte Ltd, Pavilion Gas Pte Ltd, Sembcorp Marine Ltd, Lan Ting Holdings Pte Ltd; and a Director of Sembcorp Industries Ltd, Regional Economic Development Authority of Sarawak, Sarawak Energy Berhad, Lambert Energy Advisory Ltd and mh Marican Advisory Sdn Bhd. He is also a Senior International Advisor of Temasek International Advisors, a subsidiary of Temasek Holdings. Tan Sri Hassan was the President & CEO of Malaysia’s Petroliam Nasional (PETRONAS) from 1995 until his retirement in February 2010, with over 30 years of experience in the energy sector, finance and management. Mr Ho Tian Yee joined the Board in May 2003. He is also a Director of AusNet Services Ltd, Managing Director of Pacific Asset Management (S) Pte Ltd, and an Investment Advisor at Blue Edge Advisors Pte Ltd. He serves on the Board of Mount Alvernia Hospital, and is the Chairman of Fullerton Fund Management Co Ltd. Mr Ho is also a director of two public-listed companies in the DBS Group, DBS Group Holdings Ltd and DBS Bank Ltd. He has over 30 years of experience in managing financial products and organisational management, and has served on the Boards of several companies. Mr Tan Chee Meng joined the Board in August 2005. Mr Tan was appointed as a Director of AusNet Services Ltd on 11 May 2016. A Senior Counsel, Mr Tan is Deputy Chairman of WongPartnership LLP. Mr Tan sits on the boards of Urban Redevelopment Authority, Jurong Town Corporation, St Gabriel’s Foundation, All Saints Home, WOPA Services Pte Ltd, TJ Holdings (III) Pte Ltd and the Arts House Ltd. He is also the Chairman of the School Management Committee of Assumption English School. 10 CHOI SHING KWOK OON KUM LOON Mr Choi Shing Kwok joined the Board in August 2006. He is the Permanent Secretary of the Ministry of the Environment and Water Resources. Mr Choi was formerly the Chairman of PowerGas Ltd and a Director of SP PowerAssets Ltd. He has also served on the boards of many other companies and statutory boards in the past. Formerly the Permanent Secretary of the Ministry of Transport, Mr Choi has had a long career in government and was awarded the Meritorious Service Medal in 2000 and the Long Service Award in 2004 by the Government of Singapore. He has also received state awards from foreign governments. Mrs Oon Kum Loon joined the Board in April 2010. She is also a Director on the boards of Keppel Land Ltd and Jurong Port Pte Ltd. Mrs Oon has about 30 years of extensive experience with DBS Bank Ltd, and held positions including Chief Financial Officer, Managing Director and Head of Group Risk Management. During her career with the bank, she was responsible for treasury and markets operations, corporate finance, and credit management and for the development and implementation of a group-wide integrated risk management framework. 11 BOARD OF DIRECTORS TAN PUAY CHIANG ONG YEW HUAT TIMOTHY CHIA CHEE MING Mr Tan Puay Chiang joined the Board in April 2012. Mr Ong Yew Huat joined the Board in February 2013. Mr Timothy Chia joined the Board in June 2014. Mr Tan is the Chairman of SP Services Ltd and is also a Director on the boards of Neptune Orient Lines Ltd and Keppel Corporation Ltd. Mr Tan was the Chairman of ExxonMobil (China) Investments Co from 2001 to 2007. During his 37-year career with Mobil and later ExxonMobil, he held extensive executive management roles in Australia, Singapore and the United States. Mr Tan had been a member of various business and industry boards including the Australian Institute of Petroleum, the Washington, D.C.-based National Policy Association, and the American Chamber of Commerce in Hong Kong. He is the Chairman of United Overseas Bank (Malaysia) Bhd, the National Heritage Board, Singapore Tyler Print Institute and the Tax Academy of Singapore. He also serves on the boards of United Overseas Bank Limited, Singapore Mediation Center and Ascendas- Singbridge Pte Ltd. Mr Ong, a former board member of the Singapore Accounting and Corporate Regulatory Authority, and the Public Accountants Oversight Committee, retired as the Executive Chairman of Ernst & Young Singapore after serving 33 years with the firm. Mr Chia is Chairman of Gracefield Holdings Limited and Hup Soon Global Corporation Private Limited. He is a member of the Board of Trustees of Singapore Management University, Advisory Council Member of the ASEAN Business Club (“ABC”) and the co-chair of ABC Singapore. Mr Chia also serves on the boards of several private and public-listed companies in Singapore as well as in the region. Mr Chia was instrumental in the founding of Hup Soon Global. Prior to Hup Soon Group. Mr Chia was a director of PAMA Group Inc from 1986 to 2004 where he was responsible for private equity investments and from 1995 to 2004, he was President of PAMA. Mr Chia also previously served as Vice President of the Investment Department of American International Assurance Company Ltd, President of Unithai Oxide Company Ltd and Chairman – Asia for UBS Investment Bank. 12 NG KWAN MENG WONG KIM YIN Mr Ng Kwan Meng joined the Board in June 2014. He is the Chairman of Aestiwood Pte. Ltd. and a Director of Tasek Jurong Limited. Mr Ng retired in August 2013 as Managing Director and Head, Group Global Markets at United Overseas Bank after serving 30 years with the bank. He was also an Executive Director and Chief Executive Officer of UOB Bullion and Futures Ltd, and a Director of Tuas Power Ltd. Mr Ng was involved in the promotion of the forex and debt capital markets in Singapore. He was a member of the Singapore Foreign Exchange Market Committee, the working group on Financial Industry Competency Standards and National Integration Working Group for the Community. Mr Wong Kim Yin is the Group Chief Executive Officer of Singapore Power Ltd. He is also the Chairman of SP PowerAssets Ltd, PowerGas Ltd, SP Telecommunications Pte Ltd, Singapore District Cooling Pte Ltd, SPI Management Services Pty Ltd and Enterprise Business Services (Australia) Pty Ltd as well as a Director of SP Services Ltd. Mr Wong is also a Director of SeaTown Holdings Pte Ltd, a member of the Board of Governors, Singapore Polytechnic and the Council for Private Education. Mr Wong was formerly Senior Managing Director, Investments at Temasek International (Pte) Ltd, where he had been responsible for investments in various sectors, including the energy, transportation and industrial clusters. Prior to Temasek, he was with the AES Corporation, a global power company listed on the New York Stock Exchange. 13 SENIOR MANAGEMENT IN ALPHABETICAL ORDER AMELIA CHAMPION Head Corporate Affairs JIMMY KHOO Managing Director Singapore District Cooling SIM KWONG MIAN Executive Vice President Chairman, SP Engineering Board JEANNE CHENG Chief Risk Officer PETER LEONG Managing Director SP PowerGrid TAN WEI KEONG Head Internal Audit LENA CHIA Chief Legal Officer & General Counsel LIM CHOR HOON Chief Talent Officer Human Resource SAMUEL TAN Chief Information Officer MICHAEL CHIN Managing Director Special Projects SP PowerGrid CHUAH KEE HENG Managing Director SP Services STANLEY HUANG Chief Financial Officer LIM HOWE RUN Head Regulatory Management and Strategic Investments CHRIS LIM Managing Director SP Training and Consultancy Company POH MUI HOON Chief Executive Officer SP Telecommunications SAMUEL TSO Head Group Safety and Health WONG CHIT SIENG Chief Corporate Officer WONG KIM YIN Group Chief Executive Officer 14 GROUP STRUCTURE SP PowerAssets SINGAPORE OPERATIONS Singapore District Cooling AUSTRALIA INVESTMENTS SGSP (Australia) Assets (40%) SP Cross Island Tunnel Trust PowerGas SP Training and Consultancy Company SP Telecommunications AusNet Services (31.1%) SP PowerGrid Power Automation (51%) SP Services We own and operate Singapore’s electricity and gas transmission and distribution networks. We also provide meter reading, billing and customer service support for the utilities market. SP PowerAssets owns the electricity transmission and distribution assets, while PowerGas owns the gas transmission and distribution assets. SP Cross Island Tunnel Trust is a business trust with a portfolio comprising the North-South and East-West transmission cable tunnel assets. SP PowerGrid manages the electricity and gas transmission and distribution networks owned by SP PowerAssets and PowerGas. SP Services provides market support services to customers for electricity, gas, water and refuse removal, and facilitates electricity retail market competition. Singapore District Cooling provides chilled water services for airconditioning in buildings. SP Training and Consultancy Company provides consultancy and training, leveraging SP’s expertise in developing and operating energy utility infrastructure and businesses. SP Telecommunications provides telecommunication infrastructure services. Power Automation is a joint-venture systems integration company providing power system control, smart grid/metering, protection system and substation automation solutions. SGSP (Australia) Assets (SGSPAA) and AusNet Services form the two main arms of our business in Australia. Together, their presence spans eastern Australia, and includes electricity and gas transmission and distribution ownership and operation, as well as related services. SGSPAA comprises Jemena, which owns and operates gas transmission pipelines, and gas and electricity distribution networks in New South Wales, Queensland, Victoria and the Australian Capital Territory, and Zinfra Group, which provides engineering, operations, maintenance and construction services to Jemena and external clients. AusNet Services owns and operates Victoria’s electricity transmission network, an electricity distribution network in eastern Victoria, and a gas distribution network in western Victoria. 15 CORPORATE GOVERNANCE ETHICS & ACCOUNTABILITY The Group endeavours to enhance shareholder value by ensuring the highest standards of corporate governance, transparency, accountability and integrity. The Group adheres closely to the principles and guidelines set out in the Singapore Code of Corporate Governance 2012 (the Code) for listed companies. The Company has adopted the Code as its guide for best practice standards and put in place an internal framework to ensure good corporate governance in its business practices and activities. The Whistleblower Policy, implemented since 2005, seeks to strengthen ethical business conduct in the Group. SETTING DIRECTION The Board provides broad strategic directions for the Group and undertakes key investment and funding decisions. In addition, the Board ensures that Management maintains a robust system of internal controls to protect the Group’s assets and reviews the Group’s financial performance. The Board typically meets at least four times a year. Special Board meetings may be convened as and when necessary to consider urgent corporate actions or specific issues of importance. During the financial year, two Board Strategic Reviews were also held. Directors with potential conflict in specific subject matters are recused from the relevant information flow, deliberation and decisions of such matters. ACCESS TO INFORMATION The Board is provided with relevant information prior to Board meetings and on an ongoing basis so as to enable them to make informed decisions to discharge their duties and responsibilities. Board papers include management financial reports, annual budgets and performance against budget, updates on key outstanding issues and updates on new legislative developments. The Board has separate and independent access to Senior Management. Should the Directors, whether as a group or individually, require independent professional advice to carry out their duties, the Company will arrange to appoint, at the Company’s expense, professional advisors to render due advice. Newly-appointed Directors attend an orientation programme to familiarise themselves with the Group’s business and governance practices. Directors are encouraged to attend appropriate courses, conferences and seminars so as to be better equipped to effectively discharge their duties as Directors. BOARD COMPOSITION There is a strong element of independence in the Board composition. Other than Mr Wong Kim Yin, who is the Group CEO, all the directors are independent. The Nominating Committee reviews the independence of each Director annually and provides its views to the Board for the Board’s consideration in accordance with the Code. It also evaluates the Board’s performance on an annual basis. The current Board size of 10 is appropriate for effective decision-making, taking into account the scope and nature of the Group’s operations. Collectively, the Directors have a wealth of expertise and experience in the management of business at senior and international levels. BOARD COMMITTEES The SP Board is supported by board committees to facilitate effective supervision of the Management. These are the Board Executive Committee, the Audit Committee, the Board Risk Management Committee, the Nominating Committee and the Staff Development and Compensation Committee. 16 As and when required for specific projects, special board steering committees and due diligence committees are formed to provide support and guidance to Management. BOARD EXECUTIVE COMMITTEE The Board Executive Committee (ExCo) comprises five Directors, four of whom are independent. The ExCo assists the Board in overseeing the performance of the Company, its subsidiaries and its associated companies. It also reviews, endorses, approves or recommends to the Board for approval, acquisitions, financing plans, and the annual operating and capital expenditure budgets of the Group. The ExCo typically meets at least four times a year. AUDIT COMMITTEE Currently, the Audit Committee (AC) comprises five independent Directors. Members of the AC have recent and relevant accounting or related financial management expertise and experience to discharge their responsibilities. The main function of the AC is to assist the Board in discharging its statutory and oversight responsibilities relating to the financial reporting and audit processes, the systems of internal controls and the process of monitoring compliance within applicable laws, regulations and codes of conduct. Responsibilities of the AC include: • Review and approval of the audit plans of external and internal auditors; • Review of the adequacy of the internal audit function; • Review of the financial statements of the Group and the Company; • Review of the independence and objectivity of the external auditors; and • Nomination of external auditors for reappointment. BOARD RISK MANAGEMENT COMMITTEE The Board Risk Management Committee (BRMC) comprises five members, four of whom are independent. The BRMC assists the Board in fulfilling its oversight responsibilities by reviewing: • the type and level of business risks that the Company, its subsidiaries and associated companies undertake on an integrated basis to achieve their business strategy; and • the policies, procedures and methodologies for identifying, assessing, quantifying (where appropriate), monitoring and mitigating risks. The BRMC is supported by the Group Risk Management Office in its risk governance responsibilities. While the BRMC oversees the SP Group’s risk management framework and policies, the risk ownership remains with the business groups. The BRMC typically meets at least three times a year. NOMINATING COMMITTEE The Nominating Committee (NC) comprises four Directors, all of whom are independent. The NC is responsible for formulating policies and guidelines on matters relating to Board appointments, reappointments, retirement and rotation of Directors. The NC, in consultation with the Chairman of the Board, considers and makes recommendations to the Board on the appropriate size and needs of the Board. New Directors are appointed by the Board after the NC has endorsed their appointment. New Directors must submit themselves for re-election at the next Annual General Meeting (AGM) of the Company pursuant to the Constitution of the Company. The Constitution of the Company also require not less than one-third of the Directors to retire by rotation at every AGM. The NC typically meets at least twice a year. The AC typically meets at least three times a year. 17 CORPORATE GOVERNANCE STAFF DEVELOPMENT AND COMPENSATION COMMITTEE The Staff Development and Compensation Committee (SDCC) comprises four Directors, all of whom are independent Directors. The SDCC oversees the remuneration of the Group Chief Executive Officer and senior executives. The SDCC establishes and maintains an appropriate and competitive level of remuneration to attract, retain and motivate senior executives to manage the Group successfully. No Director is involved, or has participated, in any proceedings with respect to his or her own remuneration. The SDCC typically meets at least twice a year. COMPOSITION OF BOARD AND BOARD COMMITTEES Board Members Audit Committee Board Executive Committee Board Risk Management Committee Nominating Committee Staff Development & Compensation Committee Tan Sri Mohd Hassan Marican, Chairman - Chairman - Member Chairman Mr Ho Tian Yee - Member Chairman - - Mr Tan Chee Meng Member Member - Chairman - Mr Choi Shing Kwok Member - - Member - Mrs Oon Kum Loon Member - Member - Member Mr Tan Puay Chiang - Member Member - - Mr Ong Yew Huat Chairman - - Member - Mr Timothy Chia Chee Ming - - Member - Member Mr Ng Kwan Meng Member - - - Member Mr Wong Kim Yin* - Member Ex-officio - - * Non-independent 18 RISK AND BUSINESS CONTINUITY MANAGEMENT SP is committed to ensuring that a strong and robust risk management system is in place for effective corporate governance, sound decision-making and efficient operational management. In addition to the generic framework of risk identification, assessment and treatment, SP proactively considers emerging risks in order to ensure business resilience. All this has translated into sustainable business performance that enables reliable and efficient utilities supply all year round. The SP Group’s guiding principle is that every employee is a risk manager in his respective area of work. Key risk issues and mitigation plans are proactively highlighted to the Risk Management Committees of the respective subsidiaries, as well as to the Board Risk Management Committee (BRMC). Key risk issues are monitored and necessary actions are taken, including remediation and business continuity planning. We continue to promote a culture of risk awareness amongst staff through initiatives such as induction courses and workshops, publishing relevant articles in company periodicals, and regular interaction between risk management teams and risk owners. KEY INITIATIVES OF RISK AND BUSINESS CONTINUITY MANAGEMENT (BCM) IN FY15/16 • Conducted risk assessment workshops with SP principal operating subsidiaries • Conducted a review of SP’s Enterprise Risk Management framework • Enhanced existing risk management processes • Maintained risk governance oversight of major projects including Full Retail Competition • Distributed N95 respirators and digital thermometers to staff, and installed air purifiers as part of the haze response plan • Successfully conducted business continuity exercises, including mobile power sub-station deployment and contact tracing, to ensure emergency preparedness and operational resilience in the event of any major incident or business disruption from local power outages to outbreaks of pandemics. • Conducted monthly BCM briefings for 460 new staff 19 CERTIFICATION AND ACCREDITATION BCA-IDA Green Mark SS564 (Energy & Environment Management System) Singapore Power Group by Building Construction Authority, 2015 ISO50001 (Energy Management) Singapore Power Group by Building Construction Authority, 2015 Singapore Innovation Class Certification, Singapore Quality Class Certification (STAR) Singapore Service Class Certification SP Services by SPRING Singapore, 2010 to 2018 People Developer Standard Singapore Power, 2000 to 2017 SP PowerGrid, 2005 to 2017 SP Services, 2005 to 2018 by SPRING Singapore ISO/IEC 17025:2005 in Electrical Testing for Electricity Meters SP PowerGrid by the Singapore Accreditation Council – Singapore Laboratory Accreditation Scheme, 2000 to present ISO/IEC 17025:2005 in Electrical Testing for Current Transformers SP PowerGrid by the Singapore Accreditation Council – Singapore Laboratory Accreditation Scheme, 2000 to present ISO 9001:2008 Certification For Quality Management System SP PowerGrid (Distribution Control & Customer Services Section) by Certification International, FY06/07 to present SP PowerGrid (Network Development) (Electricity) by Certification International, FY02/03 to present SP PowerGrid (Network Management) (Electricity) by Certification International, FY02/03 to present SP PowerGrid (Gas Operations) by SGS International Certification Services Singapore Pte Ltd, FY00/01 to present SP Services by BSI Management Systems, FY04/05 to present ISO/IEC 17025:2005 in Calibration and Measurement for Gas Flow Meters SP PowerGrid by the Singapore Accreditation Council – Singapore Laboratory Accreditation Scheme, 2005 to present ISO/IEC 27001:2013 in Operations and Maintenance of Downstream Gas Transmission and Distribution SP PowerGrid (Gas Operations) by TÜV SÜD PSB Pte Ltd, 2014 to 2017 ISO/IEC 27001:2013 SP PowerGrid (SCADA Section) by DNV GL Business Assurance, 2016 to 2019 BS OHSAS18001:2007 Certification for Occupational Health & Safety Management System SP Services by Bureau Veritas, 2014 to 2017 Singapore District Cooling by TÜV SÜD PSB Pte Ltd, 2014 to 2017 SS506 Part 1:2009 BS OHSAS 18001:2007 Certification for Occupational Health and Safety Management System SP PowerGrid by Certification International, 2014 to 2017 SS 506 Part 3:2013 Certification for Occupational Safety & Health Management System SP PowerGrid (Gas Operations) by Certification International, 2015 to 2018 20 AWARDS Top 50 Engineering Feats District Cooling System for Marina Bay Singapore District Cooling Cross-Island and Jurong Island - Pioneer Cable Tunnels SP PowerGrid (Special Projects – Cable Tunnels Section) World Class Electricity Grid Reliability Singapore Power Group by Institute of Engineering Singapore (IES), 2016 District Cooling Utility of the Year Award (2015) Singapore District Cooling by Fleming Gulf, 4th Asia Pacific District Cooling Conference, 2015 MND Minister’s Award (Team) Singapore District Cooling by Ministry of National Development (MND), 2016 Asian Utility Week Awards: Best Customer Engagement Project Award for SP Services App SP Services, 2016 Gold Award – Community Service SP Services by Mob-Ex Awards, 2016 Gold Award – Health & Safety SP PowerGrid (Special Projects – Cable Tunnels Section) by Royal Society for Prevention of Accidents, 2016 Minister’s Honour Roll (Star) Singapore Power Group by the Ministry of Home Affairs, 2013 to 2018 Advocate of NS (Organisations) Singapore Power Group by the Ministry of Defence, 2015 to 2018 Singapore H.E.A.L.T.H. Platinum Award Singapore Power Group by the Health Promotion Board, 2004 to 2018 Most Innovative Project in The Energy Sector for Knowledge Management (KM) System Singapore Power by OpenText Elite Awards, 2015 International APEX award Award of Excellence for Design and Illustration – Print Ads and Advertorials The Electricity Times Singapore Power by Communications Concept, 2016 International APEX award for Gas Safety Awareness campaign: Award of Excellence for Campaigns, Programs and Plans – Public Service Gas Safety Awareness Campaign Singapore Power by Communications Concept, 2016 Asia-Pacific Stevie Awards: Bronze Award for Innovation in Community Relations or Public Service Communications Gift of Power campaign Singapore Power 2016 International APEX award Grand Award for Design and Illustration – Design and Layout 20 Power Facts for spectrum Magazine (Feb/Mar 2015) Singapore Power by Communications Concept, 2016 21 REMEMBERING LEE KUAN YEW Right Chairman Tan Sri Mohd Hassan Marican delivered a message and led staff in a minute of silence on 23 March 2015. Above Staff penned tributes in the Condolence Book before the SP delegation went to Parliament House to pay their last respects. ingapore’s founding Prime Minister S Lee Kuan Yew was a trailblazer in every way. Under his visionary leadership, Singapore was transformed from a third to a first world country in a single generation. When he passed away on 23 March 2015, Singapore Power stood alongside the nation to pay tribute to him and honour his legacy. Condolences penned by staff across the SP Group were compiled into a book that was delivered to the Prime Minister’s Office. A delegation of SP staff also paid their last respects to Mr Lee at Parliament House. SP’s senior management joined representatives from other Temasek portfolio companies to distribute umbrellas to members of the public waiting in line to enter Parliament House. Our electricity and gas operations officers were also on standby during both the week-long lying-in-state at Parliament House and the state funeral on 29 March 2015 to ensure that proceedings went smoothly. 22 Top Left Mrs Josephine Teo, with UPAGE General Secretary Abdul Samad bin Abdul Wahab (in blue SP polo), listens to Bendemeer Secondary School students share their aspirations. Top Right UPAGE leaders and SP senior management prepare the books for distribution. Left Mrs Josephine Teo unveils the cover of the book, ‘LKY: Follow that Rainbow, Go Ride It’. LKY’S LIFE LESSONS FOR STUDENTS SP commemorated the first anniversary of the passing of Singapore’s first Prime Minister Lee Kuan Yew by partnering with Mapletree Investments to give all secondary school students a copy of “LKY: Follow that Rainbow, Go Ride It”, published by Straits Times Press. Mrs Josephine Teo, Senior Minister of State, Prime Minister’s Office, Ministry of Foreign Affairs and Ministry of Transport, launched the book with SP and Mapletree on 23 March 2016 at Bendemeer Secondary School. Union of Power & Gas Employees (UPAGE) and Building Construction and Timber Industries Employees’ Union (BATU) leaders attended the launch. Targeted at teenagers between 13 and 17-years old, it chronicles the life of Mr Lee, and is structured around the four key guiding values – idealism, courage, resilience and tenacity – that helped him and Singapore’s other Founding Fathers overcome seemingly insurmountable challenges. It also captures how Mr Lee led his life through extracts from newspaper articles and interviews, quotes and historical photographs. We hope that new generations of Singaporeans will be inspired by Mr Lee’s character, values and vision, and contribute to making Singapore shine even more brightly. 23 RELIABILITY POWERHOUSE • Commissioned the world’s largest underground district cooling network in Marina Bay in March 2016. Singapore District Cooling helps customers achieve up to 40 per cent in energy savings • Remained among the world’s highest-rated utility companies in terms of reliability and efficiency, with our customers experiencing just 0.56 minute of electricity interruption and 0.16 minute of gas interruption in FY15/16 • Three SP projects were voted among Singapore’s top 50 Engineering Feats in the Institution of Engineers (IES) Singapore’s IES-SG50 competition – Our World Class Electricity Grid Reliability, District Cooling System for Marina Bay and Cross-Island and Jurong Island-Pioneer Cable Tunnels Singapore District Cooling helps customers achieve up to 40% in energy savings From Left Benjamin Ng Jet Hon Executive Engineer, Network Management, Gas Operations Ken Kong Chee Keen Principal Engineer, Network Management, Gas Operations RELIABILITY POWERHOUSE R eliable energy infrastructure is vital for the smooth running of households, businesses and cities. In Singapore, ensuring that this service is dependable, uninterrupted and safe is a key priority for SP, and a critical component of our business strategy. We continually invest in improving our systems and processes, and seize opportunities to create sustainable growth. In FY15/16, we broke new ground with a number of major projects. We completed our first underground substation at Changi Expo and commissioned the Changi East and Upper Jurong II 230kV substations. We also commissioned the world’s largest underground district cooling network, run by our subsidiary Singapore District Cooling (SDC), which keeps Marina Bay cool. We upgraded and expanded critical power and gas networks, and network monitoring systems. We also took steps to ensure stable and reliable power supply for the future with major new transmission projects planned, and are on track to complete our Transmission Cable Tunnel Project by 2018. Our commitment to fulfilling our reliability promise has helped us record among the lowest incidence of power and gas supply interruption in the world. Last year, our customers experienced an average 0.56 minute of electricity interruption. We achieved zero transmission minutes lost, which means there was no supply interruption at the electricity transmission network level. Our gas customers experienced an average 0.16 minute of gas interruption. We continually look for innovative and cost-effective Minister for National Development Lawrence Wong toured the Singapore District Cooling’s Marina Bay plant during the commissioning event on 3 March 2016. 26 ways to do our work faster, better and more safely, and empower our staff with the knowledge they need to increase productivity and bring value to our customers and stakeholders. COUNTING ON SOLID NETWORKS Cooling down the Bay In March 2016, we commissioned the entire Marina Bay district cooling network following the third phase of capacity expansion. With the expansion, SDC now operates the world’s largest underground district cooling network. Buildings consume some 30 per cent of Singapore’s energy, and air-conditioning accounts for half their consumption. SDC’s services translate into energy savings of up to 40 per cent for customers. It also means that gardens, restaurants and infinity pools can take the place of unsightly rooftop cooling towers. The plants have a total installed capacity of 217MW, and serve 1.7 million square metres of Gross Floor Area. This idea, more than a decade in the making and supported by a robust network design, strong engineering team and high operational standards, contributes to realising the vision of an environmentally sustainable Marina Bay – and ultimately, a sustainable Singapore. Even as we look forward to welcoming new customers in the district, we are already working with the Urban Redevelopment Authority and Building and Construction Authority to expand the use of district cooling in Singapore. Overseas, we are building a district cooling system for CapitaLand’s Raffles City development in Chongqing, China. Once completed, the system will enable the development to achieve up to 50 per cent energy savings, and reduce utility cost by about S$30 million over 20 years. Raffles City Chongqing is the largest single investment by any Singapore firm in China, with total development cost expected to be around S$4.2 billion. Powering for Growth On 31 December 2015, we commissioned our first underground transmission substation, the Changi Expo 66kV substation, at Changi Business Park. It will provide 66kV intake supply to the MRT Downtown Line 3 Extension, and to multinational corporations and industries in the area. To meet growing electricity demand in the Jurong and Changi areas, 230kV substations were commissioned in Upper Jurong II and Changi East in June 2015 and July 2015, respectively. Enhanced distribution management We have upgraded our Distribution Management System (DMS), a critical system for remote monitoring and control functions for our entire 22kV network of 6,600 substations. The system also provides monitoring and control for 3,420 substations in our 6.6kV network. Following the upgrading, the DMS now includes a biometric access control system. Engineers can use artificial intelligence instead of desktop planning exercises to run contingency scenarios for equipment maintenance. The system also automatically produces and broadcasts reports on network faults as soon as they occur. Since June 2015, we have progressively implemented remote monitoring and control capabilities at our 6.6kV substations. The system has been upgraded to protect against cyber-attacks, improve system robustness, and streamline network database updating processes. 27 RELIABILITY POWERHOUSE Expanded Gas Network Infrastructure We expanded our gas transmission network towards Senoko in the North. Approximately 14km of pipelines – from Jalan Bahar to Mandai and the Mandai Offtake Station II – were completed and commissioned in March 2016. Another 12km of pipelines – from Mandai to Senoko and the Woodlands East Offtake Station – will be constructed by December 2016. This enables the safe and reliable delivery of gas from the Singapore LNG Terminal located at Jurong Island to existing and new customers in the northern part of the island, including power plants. More Capital Projects To meet customers’ growing power needs and ensure timely renewal of aging assets, we plan to roll out several major transmission projects over the next five years. These include the development of a 400/230kV substation at Jurong Island, and the progressive replacement of 230kV circuits through the North-South and East- West underground cable tunnels. The new West Jurong 400/230kV Substation, to be commissioned in December 2018, will reinforce our 400kV network and help meet the growth in demand in the western part of Singapore. This will facilitate and increase the transmission of power from Jurong Island to the mainland. Technical Officer Mohamad Ridhwan Bin Mansor conducting a gas leak survey as part of our regular maintenance to ensure the integrity of our network. Interconnecting Gas Networks Singapore’s two medium pressure gas networks that serve customers in the Jurong and Tuas areas were successfully interconnected in November 2015. The interconnection improves network supply reliability, and promotes contestability among gas shippers and retailers. Transmission Cable Tunnel Project Milestones The North-South and East-West cable tunnels, which will allow the efficient installation and replacement of underground cables, sit below the MRT underground system and are unprecedented in scale. When completed in 2017 and 2018 respectively, they will provide a cost-effective, long-term solution for the supply of reliable, quality electricity to future generations of customers. We have completed close to 85 per cent of the tunnelling for the project, with distances of 15,327m and 13,643m achieved on the North-South and East-West tunnels respectively as of March 2016. 28 Our engineers behind the Cable Tunnel project – one of three SP projects named among Singapore’s top 50 engineering feats. (From left) Koh Keng Boon, Tuem Heng Seng, Jack Puang, Shawn Seah, Weng Liwei, Yew Mun Cheong and Winston Lian. Close to 40 per cent of the Jurong Island-Pioneer Cable Tunnel, which connects the 400kV substation at Jurong Island to mainland Singapore, has also been completed. In all, we have achieved seven tunnel boring machine (TBM) breakthroughs, negotiating the tightest tunnel curvatures in Singapore. On 31 January 2016, we made history with the first ever docking of two TBMs in Singapore, 60m under the Holland Village MRT station. All tunnelling for the remaining 11 TBM drives are scheduled for completion by March 2017. Visit to SP’s Cable Tunnel North Buona Vista shaft on 28 January 2016 by Chan Chun Sing, NTUC Secretary- General, Minister, Prime Minister’s Office, and Member of Parliament for Tanjong Pagar GRC. 29 RELIABILITY POWERHOUSE Our standby crew provides the support that enables major events, such as the 28th SEA Games Singapore 2015, to run smoothly. At the right place, right time The upgrading of our SP Services Wireless Workforce Management System (WWMS) was completed in December 2015. The WWMS is an integral part of our service delivery operations. It ensures that our technicians arrive at the right location at the right time for supply activation or termination, installation inspection or meter readings. With the latest upgrade, our field services teams can use the WWMS app on their iPads to get more information on the job while on-the-go. New features, including camera and video functions, have also improved productivity, allowing site photos to be uploaded directly into the system via tablets. Our engineering feats Three SP projects – underground district cooling system, underground cable tunnels and world-class electricity grid – were voted by the public to be among Singapore’s top 50 engineering feats. This is an endorsement of our engineering capabilities and our commitment to Singapore’s sustainability drive. This competition was organised by the Institution of Engineers Singapore as part of its 50th anniversary celebrations. Leading by example SP’s Senior Management team are on a 24-hour roster and will be activated to go onsite when there are serious electricity supply disruptions, regardless of the cause of the incident. Together with our engineers, they will be ready to tackle issues and address concerns at the site. Green enterprise data centre Our SP Services enterprise data centre received three certifications – BCA-IDA Green Mark, SS564 (Energy & Environment Management System), and ISO50001 (Energy Management). The data centre was designed and built with environmentallyfriendly features, adopting industry best practices and the latest technologies to reduce energy consumption and its carbon footprint. Prominent green features include a cold aisle containment system, highly efficient power equipment, precision cooling and chilled water systems, and the use of natural lighting and LEDs with motion sensors. These features will reduce power consumption at the data centre by 15 per cent every month. PRODUCTIVITY A better way to work We have created a suite of training programmes at our Lean Academy to educate and equip our staff with the necessary skill sets to eliminate wasteful work processes. More 30 than 95 per cent of our staff have completed the DOWNTIME online training programme, which addresses waste that could be caused by Defects, Overproduction, Waiting, Not utilising talent, Transportation, Inventory, Motion and Extra processing. Customised workshops and forums strengthened our managers’ and leaders’ understanding of Lean techniques, which seek to maximise customer value while minimising waste. Armed with Lean insights, our staff shared ideas and best practices on the VOICES staff suggestion portal. More than 3,700 ideas were submitted and 100 improvement initiatives pursued in 2015. They are expected to collectively save the company S$16 million. Delivering Sustainability In September 2015, we embarked on an ambitious pilot project – Project Maximus – to embed Lean tools and practices into our operations over a nineweek induction period. The project kicked off at our Pasir Panjang District Office Inventory Management store. Staff came up with 26 ideas and six improvement projects that would potentially lead to a 5 per cent reduction in terms of man-hours, and S$1.3 million in outright savings for SP. Following the successful pilot, we identified 32 core sections that will undergo the same programme over the next two years. To sustain SP’s transformation into a Lean organisation, we integrated productivity with staff reward programmes, and simplified existing policies to make it easier to recognise staff efforts. Process Automation To improve turnaround time for cable preparation during installation, maintenance and repair work, SP invested in an Automated Coiling Machine. This significantly reduces the amount of time needed to prepare cables, and requires only a fraction of the manpower to perform the task manually. The machine comes with a hydraulic lifting mechanism and a digital measuring system, improving both safety and the accuracy of the coiled lengths to minimise re-coiling. Supporting national events We supported several national and major events in FY15/16. Close to 500 officers from Electricity and Gas Operations were mobilised for standby duty during National Day and the SG50 celebrations, the National Day Rally, the Formula 1 Singapore Airlines Singapore Grand Prix, the 28th SEA Games Singapore 2015, and the 8th ASEAN Para Games Singapore 2015. Our teams were involved in planning, discussions, practices and rehearsals to ensure there were no electricity or gas interruption during these events. Another poignant example was when our officers were also at hand to support the lying-in-state and state funeral of founding Prime Minister Lee Kuan Yew as we mourned alongside the nation on his passing in March 2015. The Automated Coiling Machine supports our productivity process by reducing the manpower required and time taken to re-coil cables. 31 DRIVING INNOVATION • Developed 17 apps, including iTalent and the Condition Monitoring inspection app, to boost productivity and collaboration among staff • Rolled out an e-biz portal to make it more convenient for potential partners to work with us • SP Services’ mobile app for customers picked up the Gold Award at Mob-Ex 2016 and was named “Best Customer Engagement Project” at Asian Utility Week 2016 S$3.4 million Projected productivity savings over two years as a result of the new electronic and digital tools for all staff. Standing from left Than Keng Hwa, Kenny Chiang Kwok Hoo, Leong Fai Choy, Chua Bing Sheng, Lam Yee Ki, Steven Chew Lai Keat Front row from left Ng Kim Yi Technical Officer, Network Management, Electricity Operations Ng Guan Jie Technical Officer, Network Management, Electricity Operations Lee Kok Kin Deputy Director, Group CEO’s Office Standing from left Chua Zhi Xin, Teo Yi Qian, Melvin Ng Cheng Li, Malcolm Samuel, Kee Yan Hong, Pyae Ko Ko, Bryan Lee Zhen Yuan, Daniel Quick Rui Wen Front row from left Darryl Ng Zhi Wei, Chen Jing Wen DRIVING INNOVATION The team from the InfoComm Technology Department Human Resource Systems section behind the iTalent talent management system – (from left) Puli Bhuvaneswari, Chua Hwee Nee, Andrew Soh, Chee Chee Kin and Cheng Wen Sen. nnovation is the driving force for change. Each I wave of progress propels the global economy forward and delivers improvement to the quality of life of our customers. The first industrial revolution was driven by steam power. The introduction of electricity transformed the way people live. Innovation has continued to provide us with significant advances in electronics, computing, digital networks and communications. We are starting to see the potential of sustainable energy. SP is committed to remain at the forefront of these developments and is driving innovation in every part of our operations so that we are able to continuously improve the quality of life for consumers. In the past year, as part of our innovation roadmap, we continued to digitalise SP to put power in the hands of our customers, partners and employees by providing them with the tools that give added convenience, increased productivity and support our drive towards greater sustainability. Beyond actively integrating new technologies for better customer experience and system performance, we are going a step further, already considering the future needs of our customers. To that end, we set up the SP Centre of Excellence to partner companies, research institutes and other innovative parties to co-develop and commercialise next-generation energy network technologies and solutions. The SP Services team receiving the Gold Award in the “Best Mobile App – Community Service” category at the Mob-Ex 2016. They are: (from left) Chin Wai Tieng, Bertina Cheong, Jacqueline Chew, Melvin Wong, Lynette Tan, SP Services Managing Director Chuah Kee Heng, Seng Siew Foong, Liong Chee Wei, Saskia Tan and Chief Information Officer Samuel Tan. 34 One of the key components in enabling innovation to cater to customer’s future needs is the ability to have fast and secure connections. SP is using its expertise in providing safe and reliable power in the area of telecommunications, providing consumers more choice in this age of increasing data flow. Together, SP’s innovation efforts in energy and communications networks will form the backbone that supports Singapore’s Smart Nation Vision. DIGITALISING SP Award-winning mobile apps We have introduced a number of mobile apps for our customers and staff. Customers have benefited from the SP Services mobile app, which enables them to monitor their utilities consumption patterns, and compare these patterns against those of their neighbours and the national average. They are also able to conduct their own home utilities audits, get energy-saving tips and set targets for lower consumption. The app picked up a Gold Award at Mob-Ex 2016 in the “Best Mobile App – Community Service” category. The Mob-Ex Awards recognises mobile marketing excellence across South Asia, Southeast Asia, and Australia and New Zealand. The app was also named the “Best Customer Engagement Project” during Asian Utility Week 2016, which was held in Bangkok. Providing convenience to our partners We rolled out our own e-biz portal, the Supplier Relationship Management system. Our vendors, developers and government agencies can expect greater convenience and better service when they process tenders, approvals, permits and other documents. Putting Power in the Hands of our Staff A key initiative for our 20th anniversary was to empower every staff with electronic tools that improve the way they work and interact with colleagues and partners. All 3,700 SP staff now have an electronic tablet which provides them with information at their fingertips, enabling them to work on the go. Projected productivity savings from this effort is estimated at S$3.4 million over two years. Our union, the Union of Power and Gas Employees (UPAGE), is a strong advocate of this initiative, which will also see staff benefit from a better quality of life at work. The iPad tablet has also allowed staff to access a number of productivity apps. We have launched a Cable and Gas Pipe Patrolling app, a Gas Meter Replacement app and a Condition Monitoring app. The Cable and Gas Pipe Patrolling app makes earthworks site monitoring more efficient by enabling staff doing patrols and site checks to create real-time recordings and instantly upload time-stamped photographs into a central database, facilitating investigation work. The mobile app also provides access to site maps and the required forms. With the Condition Monitoring inspection app, field staff can submit their inspection records immediately. They can also access live data to guide decision-making in the field. The app, implemented from 1 February 2016, is expected to achieve cost savings of approximately S$300,000, or 404 man days, during its projected lifespan of five years. In all, 17 apps have been developed since August 2013 and more are in the pipeline to help drive the efficiency of our operations. Besides boosting productivity and collaboration, better information and communications channels have helped improve employee engagement. The tools have also sped up the adoption of SP’s customised apps such as SParkle, a peer appreciation and recognition software, and iTalent, a talent management app that allows a wide range of functions, such as performance appraisal, to be done anytime, anywhere. Promoting knowledge exchange Having their own tablets also means our staff can easily access our newly-launched Knowledge Management (KM) System, an online social community where SP staff can share knowledge and discuss work-related topics. Our engineers collect and collate content on the job, including standard processes and procedures, case studies and lessons learnt. The KM System allows for this knowledge to be shared, promoting a culture of continuous learning. Knowledge from more experienced SP engineers benefits the newer members of our community. 35 DRIVING INNOVATION Some 74 online communities had been formed as of March 2016, including the Professional Engineers Guild House, which provides peer support for aspiring engineers working towards professional certification; the Safety Community, which promotes awareness around safety issues and shares observations and audits; and the Cyber Security forum, where discussions about IT risks and threats on the Internet take place. The system was recognised as the “Most Innovative Project for Energy Sector” by OpenText, a global leader in Enterprise Information Management solutions, in November 2015. Documents Registry for better accountability In line with our mission to proactively improve and add value through systems and processes, SP launched the SP Group Critical Documents Registry last year with representatives from each SP business unit, ensuring all critical documents within the SP Group are properly accounted for and stored, and can be easily traced in a common repository. This improves efficiency and productivity in tracking and retrieval, and ensures accountability. Leveraging on data analytics The Data Analytics Task Force was set up in October 2014 for various business units to develop Proof of Value (PoV) projects that use Data Analytics Tools. Our Data Analytics Resources Lab, helps take the successful PoVs to the next stage of development. These projects include Network Management, Geospatial Gas Leak Location Analysis, and Customer Contract and Debt Recovery, among others. One success story is the Geospatial Gas Leaks Location Analysis project, with a pilot completed in February 2016. Using Geospatial Data Analytics Tools, the Gas Asset Strategy and Condition Monitoring Section built a prototype that analyses historical data of gas leaks to determine areas that have a higher propensity for recurrence. This helps to optimise inspection resources. The results of this project are being adopted in gas leak inspections. Consolidating asset management systems We completed the first phase of Project NOVA, an enterprisewide asset management system, in January 2016. The system consolidates and automates manual work processes maintained by the different business units. NOVA will enable remote access of information via mobile apps, and increases staff productivity and effectiveness of workflow processes. It also paves the way for the development of a future-proof system that will drive business process automation within the organisation. SEEING POTENTIAL Next-Generation Solutions In April 2015, we launched the SP Centre of Excellence (CoE), a S$30 million collaboration with the Economic Development Board to drive the innovation and commercialisation of nextgeneration energy network technologies. Mr Neo Kim Hai (middle), Head, Knowledge Management, receiving the ‘Most Innovative Project in the Energy Sector’ award at the OpenText Elite Awards 2015. SP CoE will work with industry partners to co-develop, pilot and proof emerging technologies in SP’s networks. This collaboration does not just develop internal capabilities, but also helps SP’s partners bring their products and solutions to market. Our partners also benefit from SP’s operational expertise, and are able to test their products and solutions in actual networks, in real-time and with real consumers, measure the impact of these innovations, and commercialise them. It also brings to market solutions that improve our customers’ quality of life. Current areas being worked on include energy network digitisation, smart energy management, network sensing and big data analytics. Leveraging power experience for fibre networks Besides providing Singapore with reliable power supply, SP is also providing greater choice as a trusted partner of enterprises in 36 the telecommunications industry. Our telecommunications network arm SP Telecommunications (SPTel), whose extensive optical fibre network runs alongside SP’s nation-wide power lines, will offer connectivity and enabling-technologies to telecommunications carriers, retail service providers, data centres and enterprises. SPTel’s customers include carriers such as China Telecom and HKT, as well as enterprises such as MediaCorp. Through its extensive OpticNet dark fibre network, SPTel also allows data centres, landlords and property developers to strengthen their offerings to their end-customers – enabling organisations, from emerging InfoComm companies to e-commerce brands and entrepreneurs, to be futureready. Its SmartConnect service combines the power of Ethernet with the reliability of optical fibre to optimise connectivity for high quality, secure and speedy connections – whether between people and businesses, or between data centres and key interconnection hubs. In addition, SPTel will provide fibre links to the Woodlands Causeway and the Tuas Second Link, adding to diversity with off-shore connections outside of Singapore. DigiHub, Equinix, Global Switch, 1Net and Kingsland. Seeding the sustainable future SP actively promotes renewables and innovation in technology developments. Among our initiatives is a S$1 million, 5-year sponsorship to help Singapore Polytechnic build solar vehicles and participate in three editions of the World Solar Challenge in 2015, 2017 and 2019. Just three weeks before their scheduled departure to compete in the 2015 edition of the 3,000km solar car race across Australia, the Singapore Polytechnic team’s selfbuilt solar car, SunSPEC4, was destroyed in a fire. With additional funding and logistical support from SP, as well as our undertaking to air freight the SunSPEC4 to save time, both the team and their car were at the starting line on time to be flagged off. SP’s staff, who are also alumni of the polytechnic, travelled with the SunSPEC team to provide additional support and advice on logistics and safety. SP also sponsored a satellite phone with call and data features so the team could keep in touch with families and friends even when in remote areas. SP also launched the SunSPEC Polytechnic & University Sponsorship scheme, that offers SP academic sponsorship to the Singapore Polytechnic students who were part of the SunSPEC solar car team last year. The SunSPEC academic sponsorship scheme recognises the determination, tenacity and strong engineering passion of the students, and expands our pool of enthusiastic future engineers. As the role of data centres grows, with business applications becoming more data-intensive and requiring more bandwidth, SPTel is on track to meet the increasing demand for connectivity, speed, diversity and reliability by creating a data centre fibre fabric linking the nation’s key data centres. To date, SPTel’s customers include Keppel Singapore Polytechnic’s SunSPEC team, sponsored by Singapore Power, at the finishing line of the World Solar Challenge 2015 in Adelaide, Australia. 37 STRIVING FOR SERVICE EXCELLENCE • Customers benefit from our “one-call, one-click and onestop service in one business day” promise when they apply for utilities services • SP Services mobile app empowers customers to be more energy-efficient by helping them track consumption, compare it with their neighbours and set goals to save energy • 84,000 smart meters installed as of April 2016, out of a total 280,000 by 2021, in preparation for full liberalisation of the electricity market 1.4 million The number of customers we serve each month, including fielding some 80,000 calls. Our team reads a total of 3.6 million electricity, water and gas meters every other month. We also process some S$6 billion in utility payments annually. Customers will receive their new utilities bill in August 2016. STRIVING FOR SERVICE EXCELLENCE The app won the Gold Award – Community Service at the 2016 Mob-Ex Awards, a premier event that celebrates mobile marketing excellence across South Asia, Southeast Asia, Australia and New Zealand. The app also won the “Best Customer Engagement Project” award during Asian Utility Week 2016, held in Bangkok. CLEANER, CLEARER BILLS Melvin Chan, Customer Care Officer, helping new condominium homeowners open their utility accounts on-site when they collect their keys. F rom individuals and families to companies and industrial customers, ensuring a convenient, efficient and hassle-free service experience has always been a priority for SP. Whether through technology and innovation, or simply by listening to our customers, we continually strengthen our service culture and strive to enhance every encounter at our service touchpoints. This includes simplifying our bills so they are clear, helping customers make energy-efficient choices, putting utilities management at their fingertips, and providing easy access to assistance and self-help channels. UTILITIES AUDITS AT YOUR FINGERTIPS Following a successful pilot run, we rolled out enhanced e-services to all customers, designed to help them adopt more energy-efficient practices. From May 2016, all our customers are able to keep tabs on their energy and water consumption patterns more easily through the SP Services mobile application, website and email bill summary. The app, available from iTunes and the Google Play Store, lets customers compare their current consumption against that of their neighbours, the national average and their own past consumption. They can also conduct their own home utilities audits, get energy-saving tips, and set targets for lower consumption. Customers now receive their utilities bill in a new design, intended to promote more efficient utilities consumption and help customers better understand billing information. Past consumption and comparisons with that of neighbours and the national average are also available at a glance. The new bill offers utilities-saving tips and advice that can help customers become more energy and water efficient. Several different versions of the new design were tested with customers before the final design, which is simpler and clearer, was selected. EASY UTILITIES APPLICATION FOR NEW HOMEOWNERS Setting up a new utilities account with SP Services has become even more convenient. Customers can apply for utilities services by making one call to our hotline, one click to our website, visiting any of our three customer service centres for one-stop services, and having their utilities connected in one business day. New homeowners can now also open their utility accounts on-site at their new condominiums when they collect the keys. This means having immediate access 40 Thomas Goh (standing), Assistant Director, manages call centre operations, which includes handling about 80,000 phone calls monthly. to electricity and water without having to contact SP Services to open an account and then booking a separate appointment for the utilities to be activiated. This initiative has been very well received. ENGAGING COMMERCIAL AND INDUSTRIAL CUSTOMERS As part of ongoing efforts to build a stronger partnership with our key customers, SP PowerGrid conducted six Power Quality Interest Group (PQIG) meetings between October 2015 and February 2016 for voltage-sensitive customers from seven sectors: Semiconductor & Electronics, Pharmaceutical, Petrochemical & Chemical, Banking, Essential Services, Tourism & Hospitality, and Data Centres. The newly-formed Data Centres cluster was added to the PQIG in view of the sector’s rapid growth. The new cluster’s members had their first meeting in December 2015. GEARING UP FOR FULL LIBERALISATION OF ELECTRICITY RETAIL We continue to gear up for full liberalisation of the electricity market in Singapore, scheduled for the second half of 2018. By then, more than 1.4 million consumers, mainly households, will be able to buy electricity from the retailer of their choice or from the wholesale market. The contestability threshold has been progressively lowered since 2014. With the downward revision in July 2015, commercial and industrial consumers with an average monthly electricity consumption of at least 2,000 kWh became eligible for contestability. SP continues to work closely with new electricity retailers, helping them with the registration and activation of customer accounts. We are also making major upgrades to our systems, including equipping them with the technology and automated processes necessary to handle a higher volume of dealings between consumers and electricity retailers. More Advanced Metering Infrastructure (AMI) meters, or smart meters, will be deployed to cope with the larger number of opt-in customers. A total of 280,000 smart meters are expected to be installed by 2021, up from about 84,000 as of April 2016. AMI meters are capable of measuring contestable customers’ electricity consumption at half-hourly intervals, allowing customers to better manage their consumption and lower their electricity bills. Beyond that, more communication equipment such as Access Points and Relays will be installed to expand and strengthen the existing Radio Frequency communication network. This will not only support retail competition but also future Smart Grid developments. 41 AN ENERGISED WORKPLACE • Strengthened our engineering bench through sponsorship for Professional Engineer certification. To date, we have 100 certified engineers • Welcomed 121 fresh graduates to our in-house leadership training programme, Engineering Development for Graduates (EDGE) since 2013 • Awarded more than 100 scholarships since 2012 • Sponsored 419 staff in their part-time education since 2002 100 certified engineers This makes up 18.5 per cent of our total engineering pool who have their Professional Engineer certification, above the national average of 1.7 per cent. We have the most number of certified engineers inhouse in Singapore. * Figures updated as of March 2016. From Left Jason Chan Wei Hao Manager, Human Resource Anna Ng Lay Tin Director, Human Resource Chua Hwee Nee Assistant Director, Infocomm Technology AN ENERGISED WORKPLACE ur people are integral to O our success. We focus on attracting the best talent, developing them with diverse exposure and training, and ensuring that they have enriching and rewarding careers. We provide our staff with career development and training programmes that are tailored to their strengths and help them keep pace with our digital transformation, even as we continue to reach out to young graduates and other talent through scholarships, awards and internships. Investing in our people ensures both a dedicated workforce and the long-term sustainability of our business. Senior Engineer Lian Zijuan (left) mentors younger engineers like Chen Zhiyi (middle) and Muhammad Shahid bin Mohamed Jailani. As our industry continues to evolve and grow, we are committed to building an engaged and experienced workforce that will fuel and sustain the utilities sector in Singapore. CONTINUAL TALENT DEVELOPMENT As part of our sustained efforts to groom future-ready leaders, we partnered with Singapore Management University to run two leadership programmes aimed at equipping emerging leaders with critical skills such as decisionmaking, change leadership and communication skills, to help them navigate the ever-changing business environment. Our core leadership competencies – Strategic Perspective, People Orientation, Result Focus and Change Leadership – and SAIL (Safety, Accountability, Institution First and Learning Continuously) principles are woven into the programmes to reinforce their importance in achieving our vision, mission and strategic thrusts in Commercial, Operations, People and Stakeholders. Our leadership pipeline programme, Engineering Development for Graduates (EDGE), provides fresh graduates with structured training and job rotation to critical operations so they can gain broad-based exposure and diverse technical expertise. We developed the Enterprise-Tune Up programme for the 2013 cohort of EDGE Engineers as they entered the third year of their careers with SP. This rigourous programme is aimed at helping 44 Singapore Power is among 17 companies that signed a Memorandum of Understanding with three polytechnics and the Institute of Technical Education to place students on internships in the power sector. them improve their personal effectiveness and leadership skills, as well as enhancing their core knowledge in Safety, Regulatory Management, Risk Management and emerging trends in the utilities sector. For new technical staff, we launched the Learning Through Technical Accelerated Programme (LEAP), which will provide them with structured training before they embark on their jobs. We awarded 419 sponsorships to staff to pursue further education, including to four staff members for their Master’s degree in the United Kingdom. Of these, 54 per cent have been appointed to positions of higher responsibility, having performed well in their jobs. We have invested more than S$2 million to date in upgrading our staff. We developed a World Class Engineering Bench by complementing core engineering work with continual learning. Mentors and fellow engineers share their experiences with their younger counterparts on SP’s Knowledge Management Portal. We continue to offer our engineers sponsorship for their Professional Engineering certification. To date, we have 100 certified engineers who make up 18.5 per cent of our total engineering pool, above the national average of 1.7 per cent. This makes us the organisation with the most number of certified engineers in-house. Our investment in the energy sector starts early. Most recently, we committed ourselves to granting S$10,000 in awards over five years to Singapore University of Technology and Design (SUTD) students who demonstrate outstanding performance in their Electric Power Systems and Design module. This is in addition to targeted efforts to reach out to students to fuel interest not just in SP but in the energy sector as a whole. A total of 97 sponsorships and book prizes were awarded to students from tertiary institutions. Since 2012, we have also awarded more than 100 scholarships to students with a passion for engineering in the energy sector. ITALENT AND SPARKLE In January 2016, we rolled out iTalent, a user-friendly App that allows our staff to take charge of their career development. Accessible via the office workstation or SP-issued iPads, iTalent helps employees identify 45 AN ENERGISED WORKPLACE The EDGE programme has nurtured Executive Engineer Gary Tan’s leadership skills. He leads a team of 29 technical staff that deals with Gas Operations emergency responses. their career goals and provides them with “development on the go” – online access to the tools and training that can help them achieve their career goals. Staff can also access their performance appraisals, view their profiles and update their performance on the platform. For managers, iTalent’s dashboard and data-on-demand provides a sound overview of their teams’ progress and where their capabilities stand, as well as opportunities for better communication. We believe that iTalent will result in greater work efficiency and productivity as information becomes more available and accessible. SParkle is a new channel for staff to provide timely recognition to any colleague – peer, supervisor or subordinate. The SParkle App enables staff to send a compliment, word of thanks or commendation at any time, quickly and easily. Since its launch in December 2015, more than 16,000 stars have been sent out. We believe timely affirmation goes a long way in strengthening morale and motivating staff to perform their best. SAFETY FOR EVERYONE Safety also continues to feature prominently on SP’s agenda, with the implementation of safety courses not just for management and staff, but extending to our contractors as well. Such courses ensure that SP is primed to further enhance safety management and practices, and reinforce SP’s safety culture. 46 Since December 2015, more than 16,000 SParkle stars have been awarded by staff in recognition of their colleagues. FUELLING SKILLS DEVELOPMENT As a major player in the energy sector, we established the Singapore Institute of Power and Gas (SPIG) in 2014 as a one-stop training and development centre. SPIG also offers courses to power generation companies to build capabilities within Singapore’s energy industry. We believe such initiatives fuel employee engagement as we build a resilient and adaptable organisation together. We also continued to recognise staff who displayed exemplary customer service through awards, including the annual Super Star Awards. In May 2016, we launched the two-day “Sulphur-Hexafluoride SF6: Benefits, Application and Safe Handling” course to boost knowledge and understanding of SF6, a gas used as an insulating medium in electrical equipment, among the technical professionals and technicians handling it. We also continued to train staff working towards switching certification and began offering a cable jointing expertise course. Attendees of the “Sulphur-Hexafluoride SF6: Benefits, Application and Safe Handling” course learn to measure gas quality. SG50 AND SP20 STAFF INCENTIVES During the year, we rolled out initiatives to motivate staff and boost engagement. To celebrate Singapore’s 50th birthday and to commemorate SP’s 20th anniversary, we launched the SG50/SP20 Bonus. Staff qualified for this bonus when they fulfilled three meaningful engagement tasks on their SP-issued iPads or SP’s mobile apps. They had to award SParkle “Stars” to colleagues exhibiting the SAIL principles, vote on the top three Good Deeds performed by SP Heart Workers and post blog entries on the topics of safety and productivity. 47 PROMOTING A CULTURE OF SAFETY • Lowered our Lost Time Injury Frequency Rate* (LTIFR) – a global measure of safety standards – to 0.77 per million man-hours in FY15/16. We are closer to our goal of attaining the world-class standard LTIFR of 0.57 by FY18/19 • Achieved zero controllable traffic accident for FY15/16 since launch of the SP Services Motorcycle Helmet Camera for all field staff in May 2015 • SPPG’s Cable Tunnel team received the Gold Award for Health and Safety 2016 from the Royal Society for Prevention of Accidents, an endorsement of our team’s efforts to raise safety standards in the tunnelling industry 0.77 per million man-hours our Lost Time Injury Frequency Rate* – a 30% improvement from the year before. * Lost Time Injury (LTI) is a work related injury which results in a person being unfit for work on any day after the day of occurrence of the injury. Lost Time Injury Frequency Rate (LTIFR) is the number of lost time injuries per 1,000,000 man-hours worked. Back row, from left Ragunath Balamurugan S/O Paulsamy Principal Engineer, Group Safety and Health Leslie Neo Wei Han Manager, Group Safety and Health with employees of a contractor’s company. PROMOTING A CULTURE OF SAFETY t SP, safety is a team effort A requiring commitment from every player. It is driven by our management with active staff involvement. Staying free of accident and injury is an important part of our culture, for the public, our staff and our contractors. In FY15/16, we continued to enhance our safety culture and improve our safety performance. We focussed on building long-term partnerships with our contractors, ensuring that they share our safety philosophy and maintain stringent safety standards. SP has more than 6,500 workers from over 130 contractor companies involved in critical transmission and distribution network projects across Singapore. We conducted regular safety workshops and campaigns as well as weekly safety inspections and reviews, and involved workers in our efforts to improve on safety. We continue to raise the standards of our contractor safety management practices and strengthen our partnership with contractors to reduce injuries at work. We are pleased to report tangible results from our joint efforts. In FY15/16, our Lost Time Injury Frequency Rate (LTIFR) was 0.77 per million man-hours worked, a 30 per cent improvement over the previous year. Beyond worker health and wellbeing, alignment with our partners on safety also contributed to the success of our projects and helped us better manage risks. The Gas Safety Awareness committee members (from left, in blue SP polo) Gary Tan, Andrew Ang, Ken Kong, Tan Lih Hong and Joanne Ong with Home Affairs and Law Minister K Shanmugam at a community outreach event in Yishun. 50 Mr Hawazi Daipi (middle), then Senior Parliamentary Secretary for the Ministry of Manpower and Education, SP Chairman Tan Sri Mohd Hassan Marican and Group Chief Executive Officer, Mr Wong Kim Yin, launching the Gas Safety Awareness campaign during the inaugural Group Safety Summit. SAFETY AS A WAY OF LIFE We held our inaugural Group Safety Summit in July 2015 with the theme Safety is Our Way of Life. During the event, Group CEO Wong Kim Yin reiterated SP’s priorities on safety and highlighted our journey to becoming a Safety Champion. He shared our five-year roadmap to attaining the worldclass safety target LTIFR of 0.57. He joined Guest of Honour Mr Hawazi Daipi, then Senior Parliamentary Secretary for the Ministry of Manpower and Education, and SP Chairman Tan Sri Mohd Hassan Marican, in launching SP’s Gas Safety Awareness campaign for the public. We also presented awards for sound safety culture and best practices, as well as for a video competition for the best “safety story” at the Summit. The Cable Tunnel team from Special Projects, SP PowerGrid, walked away with both awards, and won for its video entry, “Family Values”, a story about the importance of safety and the safe return of our employees to their families at the end of the workday. GAS SAFETY AWARENESS CAMPAIGN Launched at the Group Safety Summit, the Gas Safety Awareness campaign aims to equip the public with the knowledge they need to respond safely to a gas leak. It specifically addresses the gaps in gas safety knowledge derived from the findings of a survey conducted in February 2015. We produced and publicised messages through posters and pamphlets, as well as a series of three videos on the “dos and don’ts” in the event of a gas leak. As of March 2016, the campaign videos had garnered more than 1.19 million views on YouTube. We also collaborated with partners such as the Ministry of Manpower and Town Councils to educate the public on gas safety issues. Since July 2015, we have participated in 13 such events. IT’S IN YOUR HANDS In September 2015, we launched a Hand Safety Campaign to promote safe practices in hand-related operations, and prevent hand and finger injuries among workers. 51 PROMOTING A CULTURE OF SAFETY The introduction of the Motorcycle Helmet Camera has helped SP Services achieve zero controllable traffic accidents for FY15/16. We conducted workshops for contractors to share hand safety statistics and incidents from the previous year. We also discussed the root causes of such injuries and control measures that could be taken. Other campaign activities included conducting risk assessments, reviewing safe work procedures and participating in SP’s in-house training on hand safety. As of March 2016, some 125 contractors’ supervisors and safety coordinators had undergone the train-the-trainer session, and more than 2,100 workers had been through hand safety briefings. Within six months of the campaign’s launch, we saw a 63 per cent improvement in our LTIFR for hand-related injuries. ACTIVITY BASED SAFETY IMPROVEMENT SYSTEM (ABSIS) In March 2015, the Cable Tunnel team from Special Projects, SP PowerGrid, introduced the Activity Based Safety Improvement System (ABSIS), a systematic approach to ensuring the safety of our workers as they carry out critical tunnel construction operations. Throughout the year, the team captured video footage as workers conducted tunnelling activities, focussing on one specific activity each week. The 52 videos are used to educate workers on safe work procedures, enhancing their safety awareness and vigilance. This form of audio visual communication cuts across the various languages our workers speak and provides them with essential information to stay safe. The initiative has been well received by contractors and project consultants. DRIVING HOME THE SAFETY MESSAGE Our goal of zero safety accident means ensuring that our field staff are aware of the hazards that might exist in any given situation, and are well-equipped to minimise the risk of accidents. We introduced the SP Services Motorcycle Helmet Camera in May 2015 for all field 52 staff to help us evaluate their safety awareness of riding behaviour. Using the footage collected, we were able to identify gaps in riding safety and establish appropriate safety measures while raising safety awareness among our riders. Since its launch, SP Services has achieved zero controllable traffic accident for FY15/16. CUSTOMISED SAFETY EFFORTS The Singapore Institute of Power and Gas conducts safety training courses for SP’s contractors. The courses help them understand the importance of workplace safety and health, and enable them to apply safe practices at the worksite. The courses are customised, specifically for cable tunnel operations, building construction and for SPPG’s road works and installations. They are conducted in English as well as in Tamil, Bengali and Mandarin. In FY15/16, there were 6,500 contractors who underwent safety training at SIPG. BREAKING NEW GROUND FOR SAFETY The Cable Tunnel team from Special Projects, SP PowerGrid, received the Gold Award for Health and Safety 2016 from the Royal Society for Prevention of Accidents (RoSPA). The UK-based company has a more than 100- year history of promoting health and safety around the world. This is an endorsement of the team’s strategic initiatives, the support of management and our collective passion for raising safety standards in the tunneling industry. The video-based ABSIS system educates workers on safe work procedures, enhancing their safety awareness and vigilance. Mr Michael Chin (right), Managing Director (Special Projects) receiving the RoSPA Gold Award for Health and Safety from RoSPA Trustee Harpeet Kondel. 53 POWERING A BETTER WORLD • For SG50, we gave Singapore the Gift of Power – free mobile device charging stations at 200 locations island-wide • For SP’s 20th anniversary, we rallied SP staff to carry out 20 Good Deeds of community service through 6,000 volunteer hours to help the less fortunate. We exceeded the target, with 30 deeds in almost 9,000 hours of service • More than S$10 million has been raised for the SP Heartware Fund over the past 10 years, helping more than 31,000 beneficiaries through 26 programmes annually 9,000 The number of hours clocked by SP Heart Workers participating in 30 community service initiatives in FY15/16. From left, in blue SP polo Thor Wen Lei Senior Engineer, Network Development, Electricity Operations Gavin Ong Hongjie Senior Engineer, Network Management, Electricity Operations Tiong Heng Liong Assistant Director, Strategic Development POWERING A BETTER WORLD CELEBRATING SG50 n 2015, we celebrated I Singapore’s 50th birthday and SP’s 20th anniversary with a series of unprecedented initiatives. To the nation, we presented a Gift of Power, setting up free mobile device charging stations at 200 locations islandwide. Through Love from the Stars, a charity gala dinner and concert featuring international artistes like Jackie Chan, we helped raise close to S$6.4 million for six charities. These initiatives were among the “20 Good Deeds” of community service which we had committed to undertake to mark SP’s 20th anniversary. Our staff volunteers, also known as SP Heart Workers, initially set a target of 6,000 volunteer hours to accomplish 20 Good Deeds. They far exceeded this target, putting in almost 9,000 hours to perform 30 Good Deeds. Our community service initiatives benefitted low-income families, children with special needs, and the needy elderly. To help the public save energy and contribute to a sustainable Singapore, SP also initiated programmes to promote energy efficiency and the use of renewable energy. We celebrated Singapore’s 50th birthday by presenting the nation with a Gift of Power in July 2015 – 200 mobile device charging stations in high traffic locations across the city-state. Our aim is to help Singaporeans stay connected on the go, and our gift reflected our commitment to always be there for Singapore. The charging stations can be found at hospitals, polyclinics, universities, polytechnics, supermarkets and libraries, among other places. Besides giving mobil

Utility Bill Avg_With Gas Utility Bill Average ($) for households with gas Premises Types May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 HDB 1-Room 82.78 87.43 83.34 86.23 82.42 81.64 83.97 78.63 77.93 75.97 75.08 81.01 HDB 2-Room 97.00 100.66 97.91 99.45 95.00 93.57 97.93 90.47 90.07 87.60 87.37 94.56 HDB 3-Room 124.51 129.34 124.22 126.71 122.50 121.04 124.31 116.58 115.44 112.93 113.86 121.88 HDB 4-Room 148.52 154.60 149.22 151.99 147.59 145.21 150.28 139.53 138.26 135.87 137.34 146.67 HDB 5-Room 157.84 164.50 159.46 162.46 157.97 155.35 160.85 149.14 146.83 145.17 147.64 157.34 HDB Executive 174.70 182.36 177.32 179.80 175.34 171.18 178.17 164.07 162.41 160.35 164.43 173.70 Apartment 183.56 189.46 182.17 184.14 182.73 180.50 187.96 176.05 165.34 160.41 168.05 178.81 Terrace 288.94 301.97 291.01 298.11 292.67 293.17 295.21 285.78 275.95 276.55 284.40 288.13 Semi-Detached 364.56 382.10 371.24 376.26 370.72 362.56 376.52 353.09 342.58 345.08 355.72 360.49 Bungalow 699.68 725.88 709.75 708.95 728.77 693.44 732.73 682.55 680.55 658.72 683.89 721.43 Note: The figures exclude electricity charges for PAYU customers and customers who are not purchasing electricity at the regulated tariff. Utility Bill Avg_WO Gas Utility Bill Average ($) for households without gas Premises Types Feb-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 HDB 1-Room 67.47 74.13 78.40 75.61 77.97 73.97 73.36 75.72 70.53 69.56 67.40 67.06 72.45 HDB 2-Room 80.06 87.87 91.84 89.70 91.17 86.56 85.41 89.23 82.47 81.75 79.33 78.98 85.79 HDB 3-Room 100.23 112.09 116.92 112.61 114.89 110.33 109.14 112.40 105.15 103.85 101.34 102.03 109.65 HDB 4-Room 119.36 133.11 139.31 134.99 137.35 132.51 130.31 135.32 125.42 124.11 121.47 122.33 131.34 HDB 5-Room 126.62 140.89 147.54 143.70 146.23 141.18 138.68 144.16 133.40 131.27 129.19 130.70 140.15 HDB Executive 140.97 156.71 164.42 160.31 162.51 157.57 153.76 160.51 147.39 145.83 143.33 146.49 155.34 Apartment 135.55 161.94 168.66 163.45 164.54 161.05 158.14 166.34 155.85 144.88 138.68 145.16 157.04 Terrace 240.95 263.33 276.05 267.47 273.88 266.42 265.98 269.32 259.90 252.25 251.03 256.90 262.03 Semi-Detached 301.32 335.61 352.45 342.67 347.15 340.35 333.46 344.79 323.43 314.80 316.37 323.27 330.29 Bungalow 573.47 651.42 679.81 663.52 665.92 680.97 644.28 684.59 638.58 634.59 612.19 635.63 673.27 Note: The figures exclude electricity charges for PAYU customers and customers who are not purchasing electricity at the regulated tariff.

MEDIA RELEASE ELECTRICITY TARIFF REVISION FOR THE PERIOD 1 JANUARY TO 31 MARCH 2019 Singapore, 30 December ember 2018 – For the period from 1 January to 31 March 2019, electricity tariffs (before 7% GST) will decrease by an average of 1.2% or 0.28 cent per kWh compared to the previous quarter. This is mainly due to the lower cost of natural gas for electricity generation compared to the previous quarter. For households, the electricity tariff (before 7% GST) will decrease from 24.13 to 23.85 cents per kWh for 1 Jan to 31 March 2019. The average monthly electricity bill for families living in four-room HDB flats will decrease by $1.00 (before 7% GST) (see Appendix 3 for the average monthly electricity bill for different household types). Quarterly Household Electricity Tariff* 25.00 24.00 23.65 24.13 23.85 Cents/kWh 23.00 22.00 21.00 20.00 21.39 20.72 20.30 21.56 22.15 19.00 18.00 17.00 16.00 Apr - Jun 17 Jul - Sep 17 Oct - Dec 17 Jan - Mar 18 Apr - Jun 18 Jul - Sep 18 Oct - Dec 18 Jan - Mar 19 * before 7% GST. SP Group reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator. The tariffs given in Appendix 1 have been approved by the EMA. Issued by: SP Group 2 Kallang Sector Singapore 349277 www.spgroup.com.sg ELECTRICITY TARIFFS FROM 1 JANUARY 2019 LOW TENSION SUPPLIES, DOMESTIC All units, ¢/kWh LOW TENSION SUPPLIES, NON-DOMESTIC All units, ¢/kWh HIGH TENSION SMALL (HTS) SUPPLIES Contracted Capacity Charge $/kW/month Uncontracted Capacity Charge $/chargeable kW/month kWh charge, ¢/kWh Peak period (7.00am to 11.00pm) Off-peak period (11.00pm to 7.00am) Reactive power Charge ¢/chargeable kVARh HIGH TENSION LARGE (HTL) SUPPLIES Contracted Capacity Charge $/kW/month Uncontracted Capacity Charge $/chargeable kW/month kWh charge, ¢/kWh Peak period (7.00am to 11.00pm) Off-peak period (11.00pm to 7.00am) Reactive power Charge ¢/chargeable kVARh EXTRA HIGH TENSION (EHT) SUPPLIES Contracted Capacity Charge $/kW/month Uncontracted Capacity Charge $/chargeable kW/month kWh charge, ¢/kWh Peak period (7.00am to 11.00pm) Off-peak period (11.00pm to 7.00am) Reactive power Charge ¢/chargeable kVARh Appendix 1 New Tariff Existing Tariff New Tariff (without 7% (without GST) (with 7% GST) GST) 24.13 23.85 25.52 24.13 23.85 25.52 8.58 8.58 9.18 12.87 12.87 13.77 21.71 21.40 22.90 13.27 13.09 14.01 0.59 0.59 0.63 8.58 8.58 9.18 12.87 12.87 13.77 21.49 21.18 22.66 13.26 13.08 14.00 0.59 0.59 0.63 7.68 7.68 8.22 11.52 11.52 12.33 20.57 20.26 21.68 13.15 12.97 13.88 0.48 0.48 0.51 Appendix 2 BREAKDOWN OF ELECTRICITY TARIFF 1. The electricity tariff consists of the following four components: a) Energy costs (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of power generation. b) Network costs (paid to SP PowerAssets): This fee is reviewed annually. c) Market Support Services Fee (paid to SP Services): This fee is reviewed annually. d) Market Administration and Power System Operation Fee (paid to Energy Market Company and Power System Operator): This fee is reviewed annually to recover the costs of operating the electricity wholesale market and power system. Q1 2019 TARIFF (before 7% GST) Market Admin & PSO Fee (No Change) 0.05¢/kWh (<1%) MSS Fee (No Change) 0.40¢/kWh (1.7%) Network Costs (No Change) 5.31¢/kWh (22.3%) Energy Costs (Decrease by 0.28¢/kWh) 18.09¢/kWh (75.8%) Appendix 3 AVERAGE MONTHLY ELECTRICITY BILLS OF DOMESTIC CUSTOMERS (TARIFF WEF 1 JANUARY 2019) (before 7% GST) Types of Premises Average monthly consumption per Customer Average Monthly Bill New Average Monthly Bill Average Change in Monthly Bill kWh $(a) $(b) $(b-a) % HDB 1 Room 129.76 31.31 30.95 (0.36) (1.1) HDB 2 Room 174.70 42.15 41.67 (0.48) (1.1) HDB 3 Room 261.12 63.01 62.28 (0.73) (1.2) HDB 4 Room 357.73 86.32 85.32 (1.00) (1.2) HDB 5 Room 417.78 100.81 99.64 (1.17) (1.2) HDB Executive 513.02 123.79 122.36 (1.43) (1.2) Apartment 517.83 124.95 123.50 (1.45) (1.2) Terrace 856.95 206.78 204.38 (2.40) (1.2) Semi-Detached 1,154.23 278.52 275.28 (3.24) (1.2) Bungalow 2,438.11 588.32 581.49 (6.83) (1.2) Average 425.46 102.66 101.47 (1.19) (1.2)

Media Release SP Develops Future Energy Leaders Through First Energy Managers Programme And Industry Scholarships Singapore, 2 November 2018 – Singapore Institute of Power and Gas (SIPG), as the centralised training institute for the power and gas sectors, announced today the successful completion of its first Energy Managers Programme (EMP). The pioneer cohort of 19 energy sector professionals was recognised in a ceremony during Singapore International Energy Week 2018, witnessed by Dr Tan Wu Meng, Senior Parliamentary Secretary, Ministry of Trade and Industry and Ministry of Foreign Affairs. The programme, which is under the SkillsFuture Leadership Development Initiative, is designed to build a pipeline of strong leaders for the energy sector as they address issues and opportunities in today’s transforming and disruptive landscape. Building on its inaugural run, SIPG is opening its programme to participants from ASEAN utilities and other international companies in the energy value chain, curating a broader range of experiences, perspectives and real-world applications. Mr Peter Leong, Principal of SIPG, said, “We customised this programme to help energy industry managers hone their well-rounded leadership skills through blended learning in the classroom and field trips to companies in Singapore and overseas. They have personally benefitted from networking with peers from across the value chain. They have also gleaned insights on driving advancement and innovation amidst the rapid industry disruption, in order to serve all consumers better.” Spanning five months from February this year, the programme’s first participants were emerging leaders from generation companies and SP Group. Through workshops, dialogues with senior leaders from the energy sector and government, as well as a learning trip to China, the participants were exposed to pertinent challenges the industry faces, in Singapore and around the region. They also gained valuable insights from individual coaching sessions and working on action projects. Mr Neo Bing Hui, Senior Operations Engineer, YTL PowerSeraya Ltd, said, “The Energy Managers Programme (EMP) has helped broaden my views of the industry in general, providing a different perspective of how challenges can be viewed in the energy sector. After going through EMP, I have gleaned more insights on my leadership style and how I can effectively improve communication with my team mates. I am excited to start applying what I've learnt from this programme.” The pressing need to inspire the energy sector to groom the next generation of energy leaders is why the Energy Market Authority is supporting the programme. Its Chief Executive, Mr Ngiam Shih Chun, said: “For the energy sector to embrace new opportunities and challenges, there is a need to engage and develop tomorrow's energy leaders. They will need to be agile and adopt a growth mindset to lead their organisations forward. EMA supports SIPG in playing a crucial role in providing a programme to grow our future energy leaders.” Nurturing engineering talent In developing future engineering talent, SP Group also awarded two Energy-Industry Scholarships to students from institutions of higher learning – Ms Choo Wei Ming, 19, from Ngee Ann Polytechnic and Mr Muhammad Syahiran bin Jamal, 20, from Singapore Polytechnic. SP Group’s Chief Human Resource Officer, Mr Ng Seng Huwi, presented the scholarships to Wei Ming and Muhammad Syahiran, at a ceremony during the Youth@SIEW event earlier today. The scholarship serves to nurture talent for the energy sector and support students with a passion for engineering in achieving academic and career aspirations. They will join SP Group when they complete their studies. About SP Group SP Group is a leading energy utilities group in the Asia Pacific. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and district cooling businesses in Singapore and China. SP Group is committed to providing customers with reliable and efficient energy utilities services. About 1.5 million industrial, commercial and residential customers in Singapore benefit from SP Group’s world-class transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective world-wide. SP Group also drives digital solutions to empower customers to manage their utilities, reduce consumption and save cost. For more information, please visit spgroup.com.sg or for follow us on Facebook at fb.com/SPGroupSG and on Twitter @SPGroupSG.

Media Release Singapore Power Launches Electric Vehicle Trials To Test Grid Infrastructure Capability 1 March 2012 - Singapore Power today launched its electric vehicle technology development initiative ‘EVs@SP’ to study the impact that electric vehicle charging can have on the electricity grid. Working closely with A*STAR, the Energy Market Authority (EMA) and industry partners, ‘EVs@SP’ is part of Singapore Power’s efforts to keep pace with technological trends, in order to continue serving a reliable supply of electricity to Singapore consumers. 2. Singapore Power will be introducing three electric Kangoos vehicles into its operating fleet with industry partner, Renault. The EV trials will facilitate the testing and evaluation of the threshold levels and the impact of EV’s integration on the power grid. Data collected would be important to ensure the resilience of the grid network to prepare for possible public adoption of EVs. 3. Mr Wong Kim Yin, Group Chief Executive Officer, Singapore Power said, “Delivering a reliable supply of electricity to our customers will always be our top priority. We must anticipate the potential effect that the adoption of EVs may have on the electricity network, to ensure that we can continue to deliver high reliability of power supply.” 4. The launch was symbolised by the handover of a Kangoo EV which was officiated jointly by Mr Wong Kim Yin, Group Chief Executive Officer, Singapore Power, Mr Lim Chuan Poh, Chairman, A*STAR, Mr Chee Hong Tat, Chief Executive, Energy Market Authority and Mr Andre Roy, Managing Director, Wearnes Automotive. 5. “The adoption of electric vehicles by Singapore Power is a step towards understanding and developing an intelligent and secure energy infrastructure for our future. A*STAR has keen interest to work closely with companies like Singapore Power to enhance Singapore’s smart grid value chain from R&D initiation to commercial testbedding and eventual technology adoption. Through such public-private partnerships to innovate energy solutions, Singapore’s fast emerging smart energy economy will be a key demonstrator for the global energy landscape”, said Mr Lim Chuan Poh, Chairman, A*STAR. 6. “We are proud to be a partner with SP PowerGrid in pioneering the use of Electric Vehicles in Singapore. We believe this is a big step towards innovation and to reduce carbon emissions for a sustainable environment. First to hit the roads will be a full-sized sedan that is practical for everyone with a very low running cost”, said Andre Roy, Group Managing Director, Wearnes Automotive Pte Ltd. 7. As a kickoff to the Electric Vehicle trials, SP PowerGrid, a member of Singapore Power Group, also signed Memoranda of Understanding with its technology partners in this test bed project - the Institute for Infocomm Research (A*STAR) for collaboration on research and development of smart grids and infrastructure security; Campus for Research and Technological Enterprise (Technology University of Munich) to develop innovative technologies and future transportation concepts related to Electric Vehicles; and Power Automation and Siemens on smart grid integration for charging of Electric Vehicles. About Singapore Power Singapore Power Group (SP) is a leading energy utility group in the Asia Pacific. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia. In Singapore, SP is the largest electricity and gas utility group, providing electricity and gas transmission and distribution, and market support services to over a million industrial and domestic customers. About the Agency for Science, Technology and Research (A*STAR) The Agency for Science, Technology and Research (A*STAR) is the lead agency for fostering world-class scientific research and talent for a vibrant knowledge-based and innovation-driven Singapore. A*STAR oversees 14 biomedical sciences and physical sciences and engineering research institutes, and six consortia & centres, located in Biopolis and Fusionopolis as well as their immediate vicinity. A*STAR supports Singapore's key economic clusters by providing intellectual, human and industrial capital to its partners in industry. It also supports extramural research in the universities, hospitals, research centres, and with other local and international partners. About Renault With more than 350 industrial and commercial sites and present in 118 countries, the Renault group designs, develops, manufactures and sells a broad range of innovative, safe and environmentally respectful vehicles. Renault pursues its strategy of profitable growth under the Renault, Dacia and Renault Samsung Motors brands. The Renault group employs 128 000 people worldwide, reported a net revenue of €38,971 millions in 2010 and has sold more than 2,7 million vehicles in 2011. About Wearnes Automotive Established in 1906, Wearnes Automotive Pte Ltd currently distributes and retails a range of premium passenger marques. The company operates in Hong Kong, Indonesia, Malaysia, Singapore and Thailand. Wearnes Automotive is a wholly-owned subsidiary of SGX Mainboard-listed WBL Corporation Limited (Wearnes), an international conglomerate with businesses in technology, automotive, property and engineering & distribution. Singapore: Bentley, Bugatti, Infiniti, Jaguar, Land Rover, McLaren, Renault,Volvo Malaysia: BMW, Volkswagen, Volvo Thailand: Jaguar, Mazda, Volvo Indonesia: Bentley, Jaguar, Mazda Hong Kong: Renault, Volvo

News & Media Releases Latest All Years 20 Feb 2024 SP Group To Acquire 75 MWp Of Rooftop Solar Assets In China 11 Jan 2024 SP Group secures S$650 Million Green Loan to finance Super Low-Energy Labrador Tower Development 28 Dec 2023 Electricity Tariff Revision For The Period 1 January to 31 March 2024 14 Nov 2023 SP Group’s Integrated Energy Solutions to Power Rangsit University’s Green Energy Transformation 31 Oct 2023 Advisory on Recruitment and Impersonation Scams 29 Oct 2023 Malee Group Partners SP Group to Power Green Energy Transition for Manufacturing Facility 24 Oct 2023 SP Group conferred highest accolade at Community Chest Awards 2023 23 Oct 2023 Leveraging Digital Solutions to Future-Proof Singapore’s Energy Grid 23 Oct 2023 New Residential Demand Response Pilot to Empower Households to Reduce Electricity Consumption during Demand Peaks 04 Oct 2023 SP Group and Tenaga Nasional Berhad embark on feasibility study for a second power interconnection between Singapore and Peninsular Malaysia to enable energy transfer 1 ... 6 7 8 ... 23

GETTING STARTED OPENING YOUR UTILITIES ACCOUNT GETTING YOUR UTILITIES SUPPLIES MANAGING YOUR UTILITIES ACCOUNT CLOSING YOUR UTILITIES ACCOUNT 5 Here are steps to guide you through your commercial utilities journey with us. Getting started • Use of premises • Types of supply • Meter(s) requirements • Security deposit and supply capacity/load Opening your utilities account • Where to apply? • Required documents Getting your utilities supplies • Requirements for electrical installation licence (for > 45kVA) • When can supplies be turned on? • Express turn-on requirements Managing your utilities account • Applying for an e-account • Reading your meters • Paying your bills • Understanding the tariff • How to switch electricity supply to a retailer? Closing your utilities account • Required documents • Things to note after closing your utilities account 2 GETTING STARTED GETTING STARTED USE OF PREMISES Residential – Domestic Use For premises that are used exclusively for residential purposes. Commercial – Non-Domestic Use For premises that are used for the purpose of, or in connection with any trade, business or profession. It is important to declare the use of premises correctly as it is an offence under the Public Utilities Act (Cap. 261) to make any false statement, representation or declaration in connection with the application for water supplied by the Public Utilities Board (PUB). 3 GETTING STARTED TYPES OF SUPPLY Permanent Supply Application for any residential, trade, business or professional use. Application for the following type of premises: Construction Site Street Opera (e.g. Wayang) Site Office Gondola Temporary Supply After opening of utilities account: Premises without Electricity Meter Installation, testing and submission of Electrical Installation Licence (EIL) (if applicable) are required before turning on utilities supply. Please refer to Page 9 for more information. Premises without Water Meter PUB will install and turn on water supply within three (3) business days after all plumbing works are completed and relevant documents are submitted. Premises without Gas Meter Please contact City Energy Pte. Ltd. (as Trustee of City Energy Trust) at 1800 555 1661 or visit City Energy Showroom at Plaza Singapura, #03-78 (68 Orchard Road, Singapore 238839) if you require gas supply. 4 SECURITY DEPOSIT + AND Initial Security Deposit required – Permanent Supply Use of Premises Water Electricity Gas HDB Shop Houses Stalls – Cooking Stalls – Non-Cooking Multi-Storey Carpark ATM/Translink/ Info Teller Bin Compound $100 $200 $600 $200 $500 $200 $100 $400 Public Lighting Refer to SP PowerGrid Quotation Others $3.50 per Cu M or $300, whichever is higher Based on Supply Capacity (kVA)* $400 *Please check with your appointed Licensed Electrical Worker (LEW) on the Supply Capacity. Supply Capacity (kVA) Up to 15 16 to 45 46 to 75 76 to 140 141 to 180 181 to 230 231 to 280 281 to 460 461 to 560 561 to 1,000 1,001 and above Security Deposit $450 $1,350 $2,100 $4,050 $5,100 $6,600 $7,950 $13,050 $15,900 $28,500 $57,000 5 Security Deposit (cont'd) Supply Capacity (kW) Security Deposit High Tension & Extra High Tension (Temporary & Permanent Supply) $40 per kW Initial Security Deposit required – Temporary Supply Use of Premises Water Electricity Construction Site $3.50 per Cu M or $300, whichever is higher Based on Supply Capacity Site Office $1,300 Street Opera (e.g. Wayang) $150 per day Gondola $200 + The rates are subjected to review. 6 OPENING YOUR UTILITIES ACCOUNT OPENING YOUR UTILITIES ACCOUNT SP Group Website WHERE TO APPLY? Scan here or visit https://openaccount.spgroup.com.sg/#/open-account/ to open a commercial utilities account. You are required to make payment for your initial security deposit via eNETS or Credit Card during the online application. For payment via eNETS, you will require a valid Internet Banking Personal Account with DBS/POSB/OCBC/Plus, Citibank, or UOB (eNETS Debit), adequate balance and payment limit sufficient for the security deposit deduction. For payment via Visa/Mastercard, please note that it is only applicable for electricity supply of up to 1,001kVA and above and other services such as water and gas. Customer Service Centre Opening hours Mon – Fri : 8.30am to 6.00pm Sat : 8.30am to 1.00pm Closed on Sun & Public Holidays 490 Lor 6 Toa Payoh #09-11 HDB Hub Biz Three Lift Lobby 1 Singapore 310490 7 Required Documents 1 Application Form 2 ID CARD WORK PASS OPENING YOUR UTILITIES ACCOUNT Under Personal Name Application Form (Completed and signed) 3 Tenancy agreement Documentary proof of occupancy (e.g. Tenancy agreement or property tax) NRIC/FIN (Front and Back) [For Foreign Delegates, please provide copy of Green Card/Employment Pass/ copy of Exemption Order] 4 SPECIMEN Initial security deposit is payable upon application 1 Application Form 2 Application Form (Completed and signed) Latest ACRA detailed Business Profile/Bizfile 3 Tenancy agreement 4 Under Company Name Documentary proof of occupancy (e.g. Tenancy agreement or property tax) Copy of Acknowledgement of Electrical Installation Licence Requirement Form (EIL Form) (for > 45kVA) 5 SPECIMEN Initial security deposit is payable upon application Required upon request • Copy of Director's NRIC/FIN card [Front and Back] • Letter of Authorisation + – if signatory is not a Director according to ACRA listing + To be authorised by the Director listed in the recent ACRA detailed Business Profile/ Bizfile on the letterhead issued by the company, indicating its representative's name and identification number, i.e. NRIC or FIN. Additional Documents for Temporary Supply 1 2 Quotation for Electricity Supply Connection and EIL issued by EMA Water quotation from PUB 8 GETTING YOUR UTILITIES SUPPLIES REQUIREMENTS FOR ELECTRICAL Upon account opening, you are required to obtain an Electrical Installation Licence (EIL) when you use or operate an electrical installation of approved load exceeding 45kVA for commercial purposes. GETTING YOUR UTILITIES SUPPLIES HOW DO I APPLY FOR AN ELECTRICAL You are required to appoint a Licensed Electrical Worker (LEW) of the appropriate class to take charge of the electrical installation and submit the application for an EIL. Scan for more details 9 ELECTRICITY WHEN CAN SUPPLIES BE TURNED ON? Premises Type (Permanent Supply with meter(s) on site) Supply Turn-On Premises with electricity supply <45kVA Premises with electricity supply >45kVA 2 business days 3 business days upon submission of EIL GETTING YOUR UTILITIES SUPPLIES Same-day express turn-on service is subject to availability and with at least three hours advance notice. An express service charge is applicable for working weekdays/Saturdays. Please note that express service is unavailable for premises with: Electricity supply capacity exceeding 45kVA Water meters exceeding 25mm Commercial Gas MARKET Electricity currently supplied from the Open Electricity Market (OEM) via a licensed electricity retailer or SP Group at the wholesale electricity price 10 MANAGING YOUR UTILITIES ACCOUNT Please apply for an e-account to manage your utilities account via SP Utilities Portal. Scan here to apply Print the completed online application form, and endorse with your signature and company stamp. Submit the form to https://services.spservices.sg/#/uploadEServices Your application will be reviewed and once it is approved, the login details will be sent to the email address indicated in your online application. Get the SP App to manage your bill with greater convenience READING YOUR METERS Meter readings are taken once every two months. On months where meters are not read, your bill will be estimated based on the average daily usage between your last two actual reads. Your bill will be adjusted when your meters are next read. To avoid bill estimation, we strongly encourage customers to make use of the following e-services available for submission of meter readings: MANAGING YOUR UTILITIES ACCOUNT • SP Utilities Portal via spgrp.sg/UPortal • SP App • Email to customerreading@spgroup.com.sg Scan here to understand your utilities bill 11 PAYING YOUR BILLS GIRO How to Apply? • Through AXS machines for DBS & POSB ATM cardholders • Internet banking for DBS, POSB and OCBC cardholders • Mail the completed GIRO application form to: 2 Kallang Sector, Singapore 349277, Attention: Revenue Collection Approval may take up to six weeks. You will be notified of the status of your GIRO application via your utilities bill. Other Payment Modes Payment by credit cards via the SP App DBS/UOB/OCBC Internet banking DBS/POSB/ OCBC ATMs 7-Eleven stores SP Group Customer Service Centre AXS stations MANAGING YOUR UTILITIES ACCOUNT Note: Pink notices are issued as a reminder when payments are not made by the due date. A fee of $0.54 (inclusive of GST) applies and will be reflected in the next bill. If no payment is received after the reminder, a late payment charge of 1% will be imposed on any outstanding balance in the subsequent bill. UNDERSTANDING THE TARIFF HOW TO SWITCH ELECTRICITY SUPPLY TO RETAILER? For more information on tariffs, scan here For more information on Open Electricity Market, scan here 12 CLOSING YOUR UTILITIES ACCOUNT Required Documents Under Personal Name 1 Termination Form Termination of Utilities Supply Form (Completed and signed) 2 ID CARD WORK PASS NRIC/FIN (Front and Back) 1 Termination 2 Form Under Company Name Termination of Utilities Supply Form (Completed and signed) Required upon request Latest ACRA detailed Business Profile/Bizfile • Copy of Director's NRIC/FIN card [Front and Back] • Letter of Authorisation* – if signatory is not a Director according to ACRA listing *To be authorised by the Director listed in the recent ACRA detailed Business Profile/Bizfile on the letterhead issued by the company, indicating its representative's name and identification number, i.e. NRIC or FIN. In person: Please bring along the required documents during your visit to our Customer Service Centre Termination of Utilities Supply Forms are available at our service counters. 13 CLOSING YOUR UTILITIES ACCOUNT THINGS TO NOTE AFTER CLOSING YOUR UTILITIES ACCOUNT Termination of Gas Supply For termination of gas supply, City Energy charges a termination fee for commercial premises. Separate gas appliance disconnection fee is chargeable if required. Please refer to www.cityenergy.com.sg for more information. Refund of Security Deposit Upon closure of utilities account, the security deposit will be used to offset the final charges. Any credit balance left in your account may be transferred to other accounts under your name, if there are any outstanding charges before the final balance is refunded to you. You should receive your final bill and refund (if any) within a month. You may indicate the following in the termination form for credit balance (if any) to be: 1 2 3 GIRO DONATE Refunded via cheque Refunded to your active Giro linked to the utilities account Donated to SP Heartware Fund 4 5 Refunded to your SGD Bank account (Please provide a copy of your bank statement for verification purposes) Transferred to another active utilities account CLOSING YOUR UTILITIES ACCOUNT GIRO For utilities account under GIRO, the GIRO arrangement will be terminated after we have deducted the final charges. 14 READY TO START YOUR UTILITIES JOURNEY WITH US? Utilities Account Opening Checklist Use of premises: Types of supply: Security deposit $ Supply capacity Domestic Permanent kVA Non-Domestic Temporary Meter(s) requirements: Need to engage Licensed Electrical Worker Need to engage Licensed Plumber Need to contact City Energy Pte. Ltd. (as Trustee of City Energy Trust) Required documents (Refer to Page 8) Notes: Download forms here 15 490 Lor 6 Toa Payoh #09-11 HDB Hub Biz Three Lift Lobby 1 Singapore 310490 1800 222 2333 www.spgroup.com.sg

Staying Focused BUILDING A SUSTAINABLE FUTURE Annual Report 2008 CONTENTS 01 ABOUT SP GROUP 04 FROM THE CHAIRMAN 07 FINANCIAL HIGHLIGHTS 08 GROUP STRUCTURE 10 CORPORATE REVIEW 12 CORPORATE GOVERNANCE 12 Board of Directors 16 Organisational Structure 17 Ethics & Accountability 20 Senior Management 24 OPERATIONS REVIEW – SINGAPORE OPERATIONS 26 SP PowerAssets 28 PowerGas 30 SP PowerGrid 34 SP Services 37 SP Global Solutions 39 Singapore District Cooling 40 OPERATIONS REVIEW – AUSTRALIA OPERATIONS 42 SP AusNet 46 SPI (Australia) Assets / Jemena 50 AWARDS & ACCOLADES 52 OPERATIONAL SUPPORT 52 Human Resource 55 Information Systems 56 Enterprise Risk Management 57 COMMUNITY & ENVIRONMENT 61 FINANCIAL SUMMARY OUR MISSION We provide reliable and efficient energy utility services to enhance the economy and the quality of life. OUR VALUES COMMITMENT We commit to creating value for our customers, our people, and our shareholders. We uphold the highest standards of service and performance. INTEGRITY We act with honesty. We practise the highest ethical standards. PASSION We take pride and ownership in what we do. TEAMWORK We support, respect and trust each other. We continually learn, and share ideas and knowledge. ABOUT SP GROUP Singapore Power Group (SP) is a leading energy utility company in the Asia Pacific. We own and operate electricity and gas transmission and distribution businesses in Singapore and in Australia, primarily in Victoria, New South Wales and Queensland. Over a million Singapore industrial and domestic customers benefit from SP’s world-class electricity and gas transmission and distribution, and market support services. Singapore has one of the fewest and shortest power outages of cities worldwide as rated by international industry indices. In Australia, SP owns a diversified energy utility company, SPI (Australia) Assets, which includes the Jemena companies, and 51 per cent of SP AusNet, which is publicly-listed on the Australian and Singapore Stock Exchanges. As one of Singapore’s largest corporations, SP achieved revenue of S$6.6 billion and managed S$26.3 billion of assets in FY 08/09. Staying Focused BUILDING A SUSTAINABLE FUTURE Reliability is the hallmark of SP’s energy utility services. We build on our foundations, and strive to improve continually. Focused on our operations and ever strengthening our competencies and capabilities, we aim to build a sustainable future. FROM THE CHAIRMAN Staying Focused BUILDING A SUSTAINABLE FUTURE Ng Kee Choe CHAIRMAN FY 08/09 saw the global economy slip into recession. Business conditions deteriorated across major economies as the financial crisis took hold. Demand for electricity dipped with the contraction of the economy. The difficult operating environment notwithstanding, the Singapore Power Group turned in a creditable performance. 04 SP Annual Report 08 Financial Performance Our Group’s net profit for financial year ended 31 March 2009 was S$616 million, excluding exceptional and non-recurring items. This was comparable to the previous year’s results. Group revenue rose by 22 per cent to S$6.6 billion, mainly from higher pass through cost of electricity and full year contribution from our Australian subsidiary, SPI (Australia) Assets, while total assets declined by 9 per cent to S$26.3 billion, mainly as a result of a weakened Australian dollar. The Group’s return on equity stood at 14.4 per cent, excluding exceptional and non-recurring items. Despite the volatile debt markets, we successfully refinanced our maturing debts and secured funding for capital expenditure at competitive terms. A total of S$11 billion financing was completed in FY 08/09, demonstrating strong support from financial institutions and investors. With completion of the financing, SP is better placed to focus on strengthening our businesses. Upholding Excellence SP PowerGrid continued to excel in its electricity and gas network performances in FY 08/09. The System Average Interruption Duration Index (SAIDI) score of 0.69 minutes for our electricity grid was a significant improvement over the 1.14 minutes registered in FY 07/08. For the second time in our Group’s history, electricity SAIDI went below a minute, which is equivalent to a network reliability of 99.99%. Similarly, the SAIDI score for our gas network was 0.125 minutes, bettering FY 07/08’s score of 0.491 minutes. SP Services has done well in its stride towards service excellence. For the fourth consecutive year, it was ranked top among benchmarked service providers in Singapore for customer satisfaction. In a separate benchmarking study by KEMA, an international utility consultant, SP Services was highlighted for being very cost effective in providing a high level of service. SP Services’ cost to serve per customer was found to be lowest among major utilities in USA, Europe, Australia and Asia with performance standards that were very competitive by international standards. SP AusNet became the first business in Australia to receive certification to British Asset Management Specification – BSI PAS 55. The specification is recognised as the leading global standard against which asset-intensive industries, such as utilities, are benchmarked. Towards a Sustainable Future The Group underwent restructuring to streamline operations towards better corporate governance, business alignment, efficiencies and positioning for growth. In Singapore, the integration of electricity and gas operations under a restructured SP PowerGrid was completed. In Australia, Jemena (ex-Alinta) has been restructured to give clear focus to the separate businesses of asset ownership and asset servicing. SP AusNet also adopted a new organisational functions model, strengthening itself to meet challenges and opportunities ahead. SP AusNet’s and Jemena’s information technology services were outsourced to EB Services (Australia) Pty Ltd, a newlyformed subsidiary of SPI Pte Ltd, to achieve operational efficiencies. The SP Group is rapidly coming together to derive greater synergy and stronger competitive advantage. Major Developments and Projects In October 2008, SP PowerAsset’s second regulatory reset was concluded. This determines its annual revenue cap for the electricity transmission and distribution charges for the next five years. SP Services successfully launched a new billing system, named Enterprise Business System (EBS) on 9 August 2008, after 11 months of rigorous system integration and user acceptance tests. The system enables SP Services to enhance the quality of its customer services and streamline its business processes for better performance. Singapore’s gas market was restructured with effect from 15 September 2008 to facilitate the liberalisation of the gas market. The restructuring involved the transfer of SembCorp Gas’ pipeline to PowerGas, in line with PowerGas’ role as the sole licensed gas transporter and gas system operator in Singapore, delivering both town gas and natural gas. In support of the restructured gas market, PowerGas developed and implemented a web-based 24/7 Gas Transportation System Solution to manage the transportation of natural gas in accordance with the rules of the Gas Network Code. The unfavourable economic circumstances notwithstanding, SP’s infrastructure development went on as planned. We invested S$1 billion in capital expenditure in Singapore and Australia. Notable among our investments is a new 400kV circuit to Paya Lebar substation commissioned in September 2008. In Australia, Jemena achieved an Australia-first with its design and building of the A$104 million Colongra Lateral gas line. The line not only delivers gas to the power station, but can also store enough gas to allow the station to run at full capacity for five hours. SP Annual Report 08 05 FROM THE CHAIRMAN In early February 2009, the state of Victoria was impacted by bushfires. The Victorian Government subsequently established a Royal Commission of Inquiry into the Victorian bushfire crisis and SP AusNet is extending its full support and assistance to the Inquiry. On 16 April 2009, SP AusNet was served with a writ, an earlier version of which was previously filed in the Supreme Court of Victoria on 16 February 2009, and other associated documents. The writ alleges that “faulty and/or defective power lines” caused loss and damage. SP AusNet believes the claim is both premature and inappropriate, given the establishment of the 2009 Victorian Bushfires Royal Commission. SP AusNet will vigorously defend the claim. SP AusNet has liability insurance which provides cover for bushfire liability. SP AusNet reviews its insurance cover annually and ensures it is commensurate with the scale and size of its operations and the risks assessed to be associated with its operations and with industry standards and practice. SP AusNet’s bushfire mitigation and vegetation management programmes fully comply with Electricity Safety (Bushfire Mitigation) Regulations and are audited annually by Energy Safe Victoria. All bushfire mitigation programmes, including vegetation management, were completed prior to the declaration of the bushfire season in December 2008. Together as One We continue our emphasis on people development through Individual Learning Roadmaps for each SP staff. To encourage team bonding among staff and to build leadership skills, a corporate core programme comprising Team Engagement and Motivation (TEAM) and Leading Excellence and Development (LEAD) was launched. In Australia, Jemena relaunched its Development Programmes, focused on building people management and leadership capability at all levels within the company. An integrated talent management initiative was also implemented to support staff development. In April 2008, SP strengthened our partnership with the Union of Power and Gas Employees (UPAGE) through our signing of the Employers’ Pledge of Fair Employment Practices. This reinforces our commitment to endorse the key principles of fair and merit-based employment practices. Recognising our strong dedication and contributions towards serving the less privileged elderly in our community, the Community Chest awarded SP the SHARE Corporate Gold Award and Special Events Platinum Award at its awards ceremony in 2008. In Australia, following the bushfires in February 2009, Jemena matched personal staff donations dollar-for-dollar to raise over A$100,000 for the Red Cross Victorian Bushfire Appeal to help fire victims in their time of need. SP AusNet, through the company’s Community Development Fund, contributed A$30,000 towards community groups and various charities for Special Children. Everybody Counts We are privileged to have the services of highly qualified Board members with vast experience in management and business. They provide sound judgement and guidance which contribute in no small measure to the resilience and success of SP. I would like to thank our Board members for their invaluable counsel. To our stakeholders including our business partners, I thank you for your unstinting support and cooperation. Not least, I would like to thank the management and staff for their dedication and hard work in keeping SP on course towards further excellence. Our appreciation also goes to UPAGE for its unrelenting support in upholding the interests of its members while partnering our management. Making the Future More than ever, SP has the scale of operations, a sound and prudent financial strategy, strategic focus, and a complete range of transmission and distribution competencies for electricity and gas. Led by a highly competent and experienced management, our dedicated workforces in Singapore and Australia have in recent times proven, as they had done before, their resilience and ability to stand up against the adverse business conditions. The future is what we make it to be. I am confident we in SP have the talent and passion to achieve our vision of being a leading energy infrastructure group in the Asia Pacific. Community Caring Our commitment to aiding the needy elderly was reaffirmed through our pledge of continued support for the Home Help Service for the period October 2008 to September 2009. SP also sponsored the fund-raising efforts of various charities for their cost of direct mailers. Ng Kee Choe Chairman 17 June 2009 06 SP Annual Report 08 FINANCIAL HIGHLIGHTS S$ Million 7,000 6,000 5,000 4,000 3,000 2,000 Operating Revenue 6,618 5,243 5,447 S$ Million 30,000 25,000 20,000 15,000 10,000 18,271 Total Assets 29,043 26,298 1,000 5,000 0 FY 06/07 FY 07/08 FY 08/09 0 FY 06/07 FY 07/08 FY 08/09 S$ Million Net Profit After Tax S$ Million Shareholders’ Equity 1,400 1,200 905 1,086 458 4,800 4,600 4,615 1,000 235 719 4,400 800 600 400 670 628 103 616 4,200 4,000 3,800 3,912 4,052 200 3,600 0 FY 06/07 FY 07/08 FY 08/09 3,400 FY 06/07 FY 07/08 FY 08/09 Exceptional & Non-recurring items Recurring Profit S$ Million 450 400 350 300 250 200 150 100 50 0 Economic Value Added (EVA) – Proforma 370 220 172 Percentage Return On Shareholders’ Equity 0 FY 06/07 FY 07/08 FY 08/09 FY 06/07 FY 07/08 FY 08/09 35 30 25 20 15 10 5 23.2% 5.8% 17.4% 25.5% 9.9% 15.6% 16.6% 2.2% 14.4% Exceptional & Non-recurring items Recurring Profit SP Annual Report 08 07 GROUP STRUCTURE Singapore Power Limited Singapore Operations Australia Operations Main Businesses Other Businesses Main Businesses SP PowerAssets* SP Global Solutions SP AusNet* (51%) PowerGas* SP Telecommunications SPI Management Services** SP PowerGrid** Singapore District Cooling (60%) SPI (Australia) Assets* SP Services Jemena Asset Management Companies** * Asset owning companies ** Management services companies 08 SP Annual Report 08 Singapore Operations Our Singapore Operations has four main business units – SP PowerAssets, PowerGas, SP PowerGrid and SP Services. It also has a technical management consultancy arm and related businesses. SP PowerAssets owns the electricity transmission and distribution assets in Singapore. PowerGas owns the gas transmission and distribution assets in Singapore. SP PowerGrid manages and operates the electricity and gas transmission and distribution networks owned by SP PowerAssets and PowerGas. SP Services provides market support services to electricity, gas and water customers, and facilitates electricity retail market competition. SP Global Solutions provides consultancy, training and management services, leveraging SP’s expertise in developing and operating energy utility infrastructure and businesses. SP Telecommunications provides telecom infrastructure services, leveraging SP’s expertise in managing and developing infrastructure assets. Australia Operations Our Australia Operations has four main business units – SP AusNet, SPI Management Services, SPI (Australia) Assets and Jemena Asset Management Companies. SP AusNet owns and operates Victoria’s primary electricity transmission network, an electricity distribution network in eastern Victoria, and a gas distribution network in western Victoria. SPI Management Services is the management company operating the business of SP AusNet under a management services agreement. SPI (Australia) Assets is the holding company for assets acquired from the former Alinta Ltd. SPIAA and its subsidiaries own gas transmission pipelines, gas and electricity distribution networks, and an asset services provider business. Jemena Asset Management Companies manage the assets owned by SPI (Australia) Assets and its subsidiaries. They also provide third party asset development, construction and management services. Singapore District Cooling is a joint venture company providing chilled water for the air-conditioning of commercial buildings. SP Annual Report 08 09 CORPORATE REVIEW The 2008/2009 financial year was one marked by unprecedented changes which have altered the global financial and economic landscape. The credit crisis that hit global financial markets in mid-2007 continued throughout the financial year. Singapore Power Group’s strategic focus on electricity and gas transmission and distribution assets and businesses has stood us in good stead, providing SP with defensive, stable and predictable revenues and earnings. These assets have positioned us well in times of increased volatility. Despite the difficult economic conditions, we have continued to strengthen our core capabilities and expertise in operations and human resource through our investments in our competencies and people. In the midst of these turbulent times, we have been able to hold our ground due to the strengthening of our key pillars of growth: Investment Strategy Financing Strategy and Capital Management Operational Excellence Human Capital Investment Strategy In Singapore, SP owns and operates electricity and gas transmission and distribution businesses, and provides energy market support services. In Australia, where two-thirds of SP’s assets are located, we own and operate electricity and gas transmission and distribution businesses in Victoria, New South Wales, Queensland and the Australian Capital Territory. SP has continued to drive organic growth of our regulated asset base. Capital investments in our networks during the past 12 months exceeded S$1 billion. These investments secure future regulated revenues for the business and enhance service to our customers. The newly acquired businesses in Australia have also enabled SP to venture into new growth areas such as water distribution network development and the provision of electricity infrastructure services for the growing wind farm developments in Australia. Given the significant size of our operations in Australia, SP is now well placed to derive synergies from the Australia business, particularly in the areas of IT operations, capital works and asset management services. To this end, EB Services (Australia) Pty Ltd (“EB Services”) was established on 1 October 2008 to provide IT services to the Australia entities in the SP Group. Leveraging size and scale, EB Services will create efficiencies in the delivery of IT services and achieve synergies through the consolidation of IT personnel and resources. 10 SP Annual Report 08 Financing Strategy and Capital Management Despite the volatility in debt markets, SP successfully refinanced our maturing debts and funded our capital expenditure at competitive rates. These include the following: � � � ��� ����������� ����� ��� ��� ��������� ������� � A$3.4 billion syndicated bank debt facility in July 2008. �� ������ ������� ��������� � ���� ������� ������� Sterling bond issue in June 2008. �� ����������� ������� �������� ������������ ������ S$600 million of fixed rate notes in August 2008. The issuance comprised both 7-year and 12-year notes and was issued under the SPPA’s Global Medium Term Note Programme. The success of these financing transactions reflects the strength of our underlying business fundamentals and attests to the support of the market for our prudent and disciplined debt strategy. The Group is committed to an optimal capital structure and to maintaining our strong credit ratings. SP is currently rated AA- by Standard & Poor’s and Aa3 by Moody’s Investors Service. Operational Excellence SP outperforms our peers operating comparable underground networks. In Singapore, the average duration of unplanned electricity supply interruption a customer experienced was less than a minute, which represents a system reliability of 99.9999 per cent. Similarly, our gas network achieved its best network reliability performance in the past 12 years, where a customer experienced only an average of 7.5 seconds of unplanned gas interruptions during the year. These stellar network performances were achieved through SP’s intensive network infrastructure development and planning. SP PowerGrid took on the additional role of managing the gas network in July 2008, ahead of the gas market restructuring. This integration of electricity and gas management staff allows synergistic management of SP’s electricity and gas networks, streamlining operations for better efficiencies and enhanced performance. SP AusNet and SPI (Australia) Assets achieved operational efficiencies, particularly in the information technology area. Through operational agreements concluded between SP AusNet and the SP Group, SP AusNet now delivers end-to-end network metering services, technical services and vegetation management services to the electricity and gas networks owned and managed by Jemena. SP AusNet also implemented a new operating structure to provide more focus on growing this important part of its business to the wider market. Building Human Capital SP’s continued success depends on our people and their capabilities giving us a competitive advantage in the global marketplace. Today, the Group has about 6,500 staff located in Singapore and Australia. We remain firmly committed to investing in our people to empower them to achieve their full potential. We groom and nurture them to continuously grow their talents. We upgrade their skills by offering education, on-the-job training, participation in special projects, overseas postings, job rotations and mentorship programmes. We support them in their pursuit of lifelong learning by providing subsidies for personal development courses. We actively cultivate and create communication avenues to listen to them and understand their needs. We introduced flexible work arrangements such as flexi-hours and pro-family leave schemes to help them to balance the demands of work and family. We harvest their ideas, and harness their skills and creativity through the Value Creation Idea Award Scheme and Economic Value Projects. Recognising the need to renew our talent pool, we continued our search for talented people to join and rejuvenate our organisation through participation in scholarship fairs, career fairs, internships and referrals. Our core values of teamwork, integrity, commitment and passion guide the actions and decisions of our people towards achieving SP’s strategic and business goals. SP Annual Report 08 11 BOARD OF DIRECTORS Mr Ng Kee Choe Mr Ng Kee Choe, 64, is the non-executive Chairman of Singapore Power Limited. He was appointed Director on 1 September 2000 and became its Chairman on 15 September 2000. He is also the non-executive Chairman of SP AusNet*. Mr Ng is also Chairman of NTUC Income Insurance Co-operative Limited and President Commissioner of PT Bank Danamon Indonesia Tbk. His other directorships include those of Singapore Airport Terminal Services Limited, Singapore Exchange Limited and Fullerton Financial Holdings Pte Ltd. He is also a member of the Temasek Advisory Panel, a member of the International Advisory Council of China Development Bank and Chairman of Tanah Merah Country Club. Mr Ng was the Vice-Chairman of DBS Group Holdings. He retired from his executive position in July 2003 after 33 years of service with DBS. Mr Ng was conferred the Public Service Star in 2001 for his contributions to the public service. Mr Alan Chan Heng Loon Mr Alan Chan Heng Loon, 56, is a non-executive independent Director of Singapore Power Limited. He was appointed on 1 June 2001 and is also the Chairman of SP PowerAssets Limited and PowerGas Limited. Mr Chan is currently the Chief Executive Officer and a Director of Singapore Press Holdings Limited. He is the Chairman of the Urban Redevelopment Authority and SPH Magazines Pte Ltd. He is a member of the Board of Governors of The Singapore-China Foundation and the Board of the Casino Regulatory Authority of Singapore. Previously, Mr Chan was the Permanent Secretary for the Ministry of Transport and held directorships in DBS Group Holdings Ltd, The Development Bank of Singapore Ltd and PSA Corporation Ltd. He sits on the boards of MediaCorp TV Holdings Pte Ltd, MediaCorp Press Ltd, Singapore Press Holdings Foundation Limited, TP Ventures Pte Ltd, GMM Times Company Limited, OpenNet Pte. Ltd., Business China, Magazines World Sdn Bhd, Blu Inc Holdings Malaysia Sdn Bhd, and Blu Inc Media Sdn Bhd. Mr Chan was awarded the Public Administration Medal (Gold) in 2002. 12 SP Annual Report 08 From far left: Mr Ng Kee Choe Chairman, Mr Alan Chan Heng Loon, Mr Eric Gwee Teck Hai, Mr Ho Tian Yee & Mr Tan Chee Meng, SC Mr Eric Gwee Teck Hai Mr Eric Gwee Teck Hai, 70, is a non-executive independent Director of Singapore Power Limited. He was appointed on 1 January 2001. He is the Chairman of SP Services Limited and a Director of SP AusNet*. Mr Gwee is also a Director of WorleyParsons Ltd and the Melbourne Business School Ltd. He was the Chairman of the Board of Governors for the Institute of Technical Education (ITE) and the Public Transport Council until 2001. For his many years of dedicated service to the community, Mr Gwee was awarded the Public Service Star in 1994 and the Public Service Star (Bar)[BBM(L)] in 2004. He was also honoured with the Meritorious Service Medal in 2007. Mr Ho Tian Yee Mr Ho Tian Yee, 56, is a non-executive independent Director of Singapore Power Limited. He joined the Board on 1 May 2003 and is also a Director of SP AusNet*. Currently, Mr Ho is the Managing Director of Pacific Asset Management (S) Pte Ltd and holds directorships in publicly-listed companies including Fraser and Neave Limited and Singapore Exchange Limited. He is a member of the Risk Committee of The Government of Singapore Investment Corporation Pte Ltd and the Chairman of Times Publishing Limited. Mr Ho was a former director of Great Eastern Holdings Limited, The Overseas Assurance Corporation Limited and The Great Eastern Life Assurance Company Limited. He was awarded the Public Service Medal in 1997. Mr Tan Chee Meng, SC Mr Tan Chee Meng, 52, is a non-executive independent Director of Singapore Power Limited. He was appointed on 1 August 2005. He is also a Director of SP PowerAssets Limited and PowerGas Limited. Mr Tan is Head (International Projects) and a Partner of WongPartnership LLP. He was appointed Senior Counsel in January 2006, and a Specialist Judge in July 2006 for a period of two years. Mr Tan is a Fellow of the Singapore Institute of Arbitrators and an Accredited Adjudicator of the Singapore Mediation Centre. He is a Regional Panel Arbitrator of the Singapore International Arbitration Centre and is on the Panel of Accredited Arbitrators of Badan Arbitrase Nasional Indonesia. Mr Tan is also a board member of the National Council of Social Service, Urban Redevelopment Authority and St Gabriel’s Foundation. SP Annual Report 08 13 BOARD OF DIRECTORS Mr Bobby Chin Yoke Choong Mr Bobby Chin Yoke Choong, 57, is a non-executive independent Director of Singapore Power Limited. He was appointed on 23 January 2006. Mr Chin is the Chairman of Singapore Totalisator Board. Mr Chin serves on the boards of the Competition Commission of Singapore and Singapore Labour Foundation. He is a director of several listed companies including Oversea-Chinese Banking Corporation Limited, AV Jennings Limited, Yeo Hiap Seng Ltd, Ho Bee Investment Limited, Neptune Orient Lines Limited and Sembcorp Industries Limited. He also sits on the Board of Trustees of the Singapore Indian Development Association (SINDA). Mr Chin was the Managing Partner of KPMG Singapore from 1992 to 2005. He served as Chairman of the Urban Redevelopment Authority from April 2001 to March 2006. In 2003, Mr Chin was awarded the Public Service Medal. Prof Jeremy Guy Ashcroft Davis AM Prof Jeremy Guy Ashcroft Davis, 66, is a non-executive independent Director of Singapore Power Limited. He was appointed on 1 August 2006 and is also a Director of SP AusNet*. Prof Davis is the Chairman of UNSW Professorial Superannuation Pty Ltd and the Deputy Chairman of AMWIN Management Pty Ltd. He currently serves as a Director of the Transurban Group, CHAMP Ventures Pty Ltd, Australian Institute of Management NSW & ACT Ltd and the Australian Institute of Management Canberra. He was the former AMP Society Professor at the Australian Graduate School of Management. Prof Davis earlier spent 10 years as a management consultant with the Boston Consulting Group. He also served as a Director of the Australian Stock Exchange from 1990 to 1996, and as a Director and Chairman of AIDC Limited and Amdel Holdings Pty Ltd. Mr Paul Chan Kwai Wah Mr Paul Chan Kwai Wah, 55, is a non-executive independent Director of Singapore Power Limited. He was appointed on 1 August 2006. He is a Director of SIA Engineering Company Limited, National Healthcare Group Pte Ltd and Integrated Health Information Systems Pte Ltd. He was a former Director of Verigy Ltd, the Singapore Economic Development Board, Noel Gifts International Ltd and Singapore Telecommunications Limited. 14 SP Annual Report 08 From far left: Mr Bobby Chin Yoke Choong, Prof Jeremy Guy Ashcroft Davis AM, Mr Paul Chan Kwai Wah, Mr Choi Shing Kwok & Mr Quek Poh Huat Mr Chan was formerly the Senior Vice President & Managing Director (Asia Pacific & Japan) of Hewlett- Packard Asia Pacific Pte Ltd and the Vice President & Managing Director (Asia Pacific) of Compaq Computer Asia Pacific Pte Ltd. He was also a member of the Tax Review Committee, Ministry of Finance and the Listings Committee of the Stock Exchange of Singapore. Mr Chan sat on the Advisory Board of the Lee Kong Chian School of Business at the Singapore Management University. He was awarded the Public Service Star (BBM) in 2005. Mr Choi Shing Kwok Mr Choi Shing Kwok, 50, is a non-executive independent Director of Singapore Power Limited. He was appointed on 1 August 2006. He is currently the Permanent Secretary of the Ministry of Transport. He was formerly a Director of Singapore Technologies Electronics Limited, Sembawang Resources Development Corporation Ltd, Singapore Automotive Engineering Ltd and Chartered Ammunition Industries Pte Ltd. He has also served as a Board member of the National University of Singapore Council, the Singapore Broadcasting Authority and the Jurong Town Corporation. Mr Choi was awarded the Meritorious Service Medal in 2000 and the Long Service Award (25 years) in 2004 by the Government of Singapore, and has also received state awards from foreign governments. Mr Quek Poh Huat Mr Quek Poh Huat, 62, was appointed a Director of Singapore Power Limited in November 2001 and Group Chief Executive Officer in May 2004. Within the Singapore Power Group, Mr Quek serves as Director on the boards of SP PowerAssets Limited, PowerGas Limited and SP Services Limited. He is currently Chairman of SP PowerGrid Limited, SPI Management Services Pty Ltd, SPI (Australia) Assets Pty Ltd and Enterprise Business Services (Australia) Pty Ltd. He retired as Director of SP AusNet* in July 2008. He is also a board director of publicly-listed Singapore Technologies Engineering Ltd and Chairman of ST Kinetics Ltd. Mr Quek is Singapore’s non-resident Ambassador to Sweden. He was conferred the Public Service Star in 1994. * A stapled group comprising SP Australia Networks (Transmission) Ltd, SP Australia Networks (Distribution) Ltd and SP Australia Networks (Finance) Trust, acting through its responsible entity, SP Australia Networks (RE) Ltd. It is dual listed on the Australian Stock Exchange and the Singapore Exchange Securities Trading Limited. As at 9 May 2009 SP Annual Report 08 15 ORGANISATIONAL STRUCTURE Board of Directors Chairman Mr Ng Kee Choe Nominating Committee Chairman Mr Alan Chan Heng Loon Finance Committee Chairman Mr Ng Kee Choe Board Risk Management Committee Chairman Mr Ho Tian Yee Staff Development & Compensation Committee Chairman Mr Ng Kee Choe Audit Committee Chairman Mr Bobby Chin Yoke Choong Head (Internal Audit) Ms Madalene Hee Subsidiaries’ Internal Audit Group Chief Executive Officer Mr Quek Poh Huat General Counsel & Company Secretary Ms Chi Ping Huey Chief Operating Officer Mr Ong Boon Hwee Chief Financial Officer Ms Lim Lay Hong Managing Director SPI Management Services & SP AusNet Mr Nino Ficca Managing Director & Acting Executive General Manager (Infrastructure Services) Jemena Ltd Mr Paul Adams Managing Director SP PowerGrid Mr Sim Kwong Mian Deputy Managing Director (Gas) Mr John Baptist Tay Deputy Managing Director (Planning & Strategy) Mr Jimmy Khoo Deputy Managing Director (Network Management) Mr Chang Swee Tong Deputy Managing Director (Network Development) Mr Chung Choon Heong Head Human Resource & Administration Mrs Lynn Loh Information Systems Corporate Affairs SP Global Solutions Subsidiaries’ Corporate Services Managing Director SP Services Mr Wong Chit Sieng Deputy Managing Director SP Services Mrs Jeanne Cheng Managing Director Strategic Investments Mr Lim Howe Run Finance � ��������� ���������� � �������� � ����� �������� � ����� ��� � ���� ���������� � ����������� � �������� � ���������� ���������� Group Risk Management Reports to Board Risk Management Committee Subsidiaries’ Risk Management Deputy Managing Director & Acting Executive General Manager (Asset Strategy) Jemena Ltd Mr Lim Howe Run Subsidiaries’ Finance 16 SP Annual Report 08 CORPORATE GOVERNANCE ETHICS & ACCOUNTABILITY The SP Board is solidly committed to good corporate governance. The principles set out in the revised Code of Corporate Governance 2005 (the Code) for listed companies are adhered to closely by the Company. The Company has used the Code as its guide and best practice standard and has put in place an internal framework to ensure good corporate governance in its business practices and activities. The Whistleblower Policy, which was launched in 2005, seeks to strengthen ethical business conduct in the Group. The Group endeavours to enhance shareholder value by ensuring the highest standards of corporate governance, transparency, accountability and integrity. Setting Directions The Board provides broad strategic directions for the Group and undertakes key investment and funding decisions. In addition, the Board ensures that Management maintains a robust system of internal controls to protect the Group’s assets and reviews the Group’s financial performance. The Board meets at least four times a year to review the Group’s business performance. In the last financial year, the Board met four times and held a Board Strategic Review in November 2008. Access to Information The Board is provided with relevant information prior to Board meetings and on an ongoing basis. Board papers include management financial reports, annual budgets and performance against budget, announcement of results, matters requiring the Board’s decision, updates on key outstanding issues and disclosure documents as well as updates on new legislative developments. Newly-appointed Board Directors attend an orientation programme to familiarise themselves with the Group’s business and governance practices. The Group also provides ongoing education on legislative updates and best practices. The Board has separate and independent access to the Senior Management and the Company Secretary. Should the Directors, whether as a group or individually, require independent professional advice to carry out their duties, the Company will arrange to appoint, at the Company’s expense, a professional advisor to render due advice. Accountability In presenting the annual financial statements to the shareholder, the Board aims to provide the shareholder with a balanced and comprehensive assessment of the Group’s position and prospects. The Management provides the Board with appropriately detailed management accounts of the Group’s performance, prospects and a risk dashboard on a monthly basis. There is a strong element of independence in the Board composition – independent non-executive Directors constitute more than three-quarters of the entire Board. The independence of each Director is reviewed annually by the Nominating Committee in accordance with the Code. The current size of ten Board members is appropriate for effective decision-making, taking into account the scope and nature of the Group’s operations. Collectively, the Directors have a wealth of expertise and experience in the management of business at senior and international levels. SP AusNet, as a publicly-listed stapled entity on the Australian Stock Exchange and the Singapore Exchange Securities Trading Limited, has established its own Audit and Risk Management Committee, Nomination Committee, Remuneration Committee as well as Compliance Committee to ensure a high standard of corporate governance. SP Annual Report 08 17 CORPORATE GOVERNANCE Board Committees The SP Board is supported by specialised board committees to facilitate effective supervision of Management. These are the Audit Committee, the Board Risk Management Committee, the Finance Committee, the Nominating Committee and the Staff Development and Compensation Committee. As and when required for specific projects, special board steering committees and due diligence committees will be constituted to provide support and guidance to Management. Audit Committee The Audit Committee (AC) comprises four nonexecutive Directors, all of whom are independent Directors as defined in the Code. The Board is of the view that the members of the AC have the financial management expertise and experience to discharge the AC’s responsibilities. The main function of the AC is to assist the Board in discharging its statutory and oversight responsibilities relating to the financial reporting and audit processes, the systems of internal controls and the process of monitoring compliance with the applicable laws, regulations and codes of conduct. The AC holds at least three meetings each year and is responsible for the following: � ������ ��� �������� �� ��� ����� ����� �� �������� ��� internal auditors; � ������ �� ��� �������� �� ��� �������� ����� ��������� � ������ �� ��� ��������� �������� �� ��� ����� ��� the Company; � ������ �� ��� ������������ ��� ����������� �� ��� external auditors; and � ���������� �� �������� �������� ��� ��������������� The members are: Mr Bobby Chin Yoke Choong (Chairman) Mr Tan Chee Meng Mr Choi Shing Kwok Mr Timothy Chia Chee Ming (co-opted external member) Board Risk Management Committee The Board Risk Management Committee (BRMC) assists the Board in fulfilling its oversight responsibilities. The BRMC reviews and approves: � ��� ���� ��� ����� �� �������� ����� ����� ��������� that the Company, its subsidiaries and associated companies undertake on an integrated basis to achieve their business strategy; and � ��� ���������� ���� ��������� ���������� ��� methodologies for identifying, measuring, monitoring and managing risks that are consistent with its risk appetite. The BRMC meets at least three times a year. The members are: Mr Ho Tian Yee (Chairman) Mr Paul Chan Kwai Wah Mr Tan Chee Meng (appointed wef 3 Dec 08) Mrs Oon Kum Loon (co-opted external member) Mr Quek Poh Huat (ex-officio)* The BRMC is supported by the Group Risk Management Office in its governance of SP Group risks. Although the risk management responsibilities of the Board are executed through the organisational set-up mentioned above, the ultimate risk ownership rests with the business groups. Finance Committee The Finance Committee (FC) assists the Board in reviewing proposed mergers, acquisitions, disposals and corporate restructuring and financing for the SP Group. The responsibilities of the FC are to: � �������� ��� ���������� ��� ��� ������� ��������� SP’s annual operating and capital expenditure budgets and business plans; � ������� �� ������� �������� ������������� divestments or corporate restructuring; � ������� �� ������� ���� ���������� ��� financings; and � ������� �� ������� ���� ����� ������� �� provided from time to time in the Authority Manual of SP Board. The FC holds at least two meetings a year. The members are: Mr Ng Kee Choe (Chairman)* Mr Ho Tian Yee Mr Eric Gwee Teck Hai Mr Quek Poh Huat* 18 SP Annual Report 08 Nominating Committee The Nominating Committee (NC) is responsible for formulating policies and guidelines on matters relating to Board appointments, re-appointments, retirement and rotation of Directors. The Directors’ performance, contribution and independence are taken into consideration in the NC’s review and assessment. The NC, in consultation with the Chairman of the Board, considers and makes recommendations to the Board concerning the appropriate size and needs of the Board. New Directors are currently appointed by way of a Board resolution after the NC has endorsed their appointment. The new Directors must submit themselves for re-election at the next Annual General Meeting (AGM) of the Company pursuant to the Articles of Association of the Company. The Articles of Association of the Company also requires not less than one-third of Directors to retire by rotation at every AGM. The NC meets at least twice a year. The NC comprises three Directors. The Chairman of the NC is an independent non-executive Director. The members are: Mr Alan Chan Heng Loon (Chairman) Mr Ng Kee Choe* Mr Quek Poh Huat* Staff Development and Compensation Committee The Staff Development and Compensation Committee (SDCC) oversees the remuneration of the Group Chief Executive Officer and senior executives. The SDCC establishes and maintains an appropriate and competitive level of remuneration to attract, retain and motivate senior executives to manage the Group successfully. No Director is involved or has participated in any proceedings with respect to his own remuneration. The SDCC meets at least twice a year. The SDCC comprises three Directors, two of whom are independent Directors. The members are: Mr Ng Kee Choe (Chairman)* Mr Alan Chan Heng Loon Mr Bobby Chin Yoke Choong Communication with Shareholder The Company values communication and ensures that timely and adequate disclosures of material information on the Company are made available to its shareholder. It holds regular dialogue and liaison sessions with the shareholder. Board Composition Board Members Audit Committee Board Risk Management Committee Finance Committee Nominating Committee Staff Development & Compensation Committee Mr Ng Kee Choe, Chairman* – – Chairman Member Chairman Mr Alan Chan Heng Loon – – – Chairman Member Mr Eric Gwee Teck Hai – – Member – – Mr Ho Tian Yee – Chairman Member – – Mr Tan Chee Meng Member Member – – – Mr Bobby Chin Yoke Choong Chairman – – – Member Prof Jeremy Guy Ashcroft Davis – – – – – Mr Paul Chan Kwai Wah – Member – – – Mr Choi Shing Kwok Member – – – – Mr Quek Poh Huat* – Ex-officio Member Member – Board Committee Members Mr Timothy Chia Chee Ming Co-opted Member – – – – Mrs Oon Kum Loon – Co-opted Member – – – As at 9 May 2009 * Non-independent SP Annual Report 08 19 SENIOR MANAGEMENT Mr Quek Poh Huat Mr Quek Poh Huat, Group Chief Executive Officer, is Chairman of SP PowerGrid Limited, SPI Management Services Pty Ltd, SPI (Australia) Assets Pty Ltd and Enterprise Business Services (Australia) Pty Ltd, and a Director on the boards of Singapore Power Limited, SP PowerAssets Limited, PowerGas Limited and SP Services Limited. He retired as Director of SP AusNet* in July 2008. Mr Quek has a Bachelor of Science (Chemical Engineering) degree with First Class Honours from University of Leeds, UK and a Master of Science (Management) with Distinction from the Naval Postgraduate School, Monterey, US. He has also completed the Advanced Management Program at the Harvard Business School, US. Mr Ong Boon Hwee Mr Ong Boon Hwee, Chief Operating Officer, oversees SP’s business units in Singapore as well as corporate services at the Group level. He also drives business development initiatives in the region. Prior to joining SP, he was Temasek’s Managing Director for Strategic Relations, and concurrently CEO of Temasek Management Services. Mr Ong is Director of ST Kinetics, Aetos Security Management and Singapore Institute of Management. He also serves on the committees of non-profit organisations such as the National Volunteer & Philanthropy Centre, A*STAR and Temasek Foundation. Mr Ong graduated from the National University of Singapore with a First Class Honours in Economics, and holds a Masters in Military Art & Science from the US Leavenworth General Staff College. Ms Lim Lay Hong Ms Lim Lay Hong is the Chief Financial Officer of the SP Group where she is responsible for providing financial strategy and leadership. This includes overseeing the corporate finance, treasury, financial management, tax planning and risk management functions of the Group. She is also responsible for corporate planning and strategic investments and has oversight of the SP Group’s overseas investments, including its Australia operations. Prior to joining SP, Ms Lim held a number of management and executive positions in a Singapore bank. Ms Lim holds a Bachelor of Accountancy degree from the National University of Singapore and a Master of Business Administration (Finance) from New York University. 20 SP Annual Report 08 From far left: MR QUEK POH HUAT Group Chief Executive Officer MR ONG BOON HWEE Chief Operating Officer MS LIM LAY HONG Chief Financial Officer MR SIM KWONG MIAN Managing Director SP PowerGrid MR NINO FICCA Managing Director SPI Management Services & SP AusNet Mr Sim Kwong Mian Mr Sim Kwong Mian, Managing Director, SP PowerGrid, has been with SP for 14 years. Prior to this, he was with the Public Utilities Board for 18 years. Mr Sim represents Singapore in the Heads of ASEAN Power Utilities/Authorities, which leads the power interconnection project to link the member countries’ electricity networks. He also represents Singapore in the Association of Electricity Supply Industry of East Asia and Western Pacific (AESIEAP). Mr Sim is a registered Professional Engineer with the Professional Engineers Board, Singapore, and a Senior Member of the Institution of Engineers, Singapore. He holds a Bachelor of Engineering (Electrical) degree from the University of Singapore, a Master of Science (Electrical) from the University of Manchester Institute of Science & Technology, UK, and a Diploma in Management Studies from the Singapore Institute of Management. He has also completed the Advanced Management Program at the Harvard Business School, US. Mr Nino Ficca Mr Nino Ficca, Managing Director, SPI Management Services, is also Managing Director, SP AusNet. He is a Director of SP Australia Networks (Transmission), SP Australia Networks (Distribution), SP Australia Networks (RE) and SP PowerGrid, as well as Managing Director of SPI PowerNet. Mr Ficca has worked in the energy industry for over 25 years, including in a number of senior management roles. He was a Director and Deputy Chairman of the Energy Supply Association of Australia until December 2007, and a member of the National Electricity Market Operations Committee. Mr Ficca holds a Bachelor of Engineering (Electrical) Honours degree and a Graduate Diploma in Management from Deakin University, Australia. He has also completed the Advanced Management Program at the Harvard Business School, US. * A stapled group comprising SP Australia Networks (Transmission) Ltd, SP Australia Networks (Distribution) Ltd and SP Australia Networks (Finance) Trust, acting through its responsible entity, SP Australia Networks (RE) Ltd. It is dual listed on the Australian Stock Exchange and the Singapore Exchange Securities Trading Limited. SP Annual Report 08 21 SENIOR MANAGEMENT Mr Paul Adams Mr Paul Adams was appointed Managing Director of Jemena Ltd in November 2008. He was previously General Manager, Network Services Group at SP AusNet. Mr Adams has a breadth of experience having worked in various roles in the electricity and gas industries for more than 25 years, including transmission, distribution, generation, trading and retailing. Mr Adams holds a Bachelor of Engineering Degree (First Class Honours) and a Graduate Diploma of Financial Management. He has completed courses in Leading Change and Organisational Renewal (Harvard), Executive Development Program (Australian Graduate School of Management) and Company Directors Course (Australian Institute of Company Directors). Mr Adams is also a Director of the Energy Networks Association of Australia and Member of the Institution of Engineers (Australia). Mr Wong Chit Sieng Mr Wong Chit Sieng, Managing Director, SP Services, is concurrently the Head (Information Systems). He has over 30 years’ experience in strategic business IT planning and the development and management of banking application systems. Before joining SP, Mr Wong was Director of Operations and Principal Consultant, Asia Pacific & Japan, at a US banking software company. He was also with the Overseas Union Bank for nine years as its Senior Vice President & Deputy CIO, and Vice President of Chase Manhattan Bank for 10 years. Mr Wong has a Bachelor of Business Administration degree with Distinction and a Master of Business Administration from the Royal Melbourne Institute of Technology, Australia. Mr Lim Howe Run Mr Lim Howe Run, Managing Director, Strategic Investments and Deputy Managing Director, Jemena Ltd, is responsible for the management of SP’s overseas investments. Prior to his appointment as Managing Director and Deputy Managing Director, he held various positions in risk management, asset management and business development within the Group. Mr Lim holds a Bachelor of Engineering (Mechanical) degree from the National University of Singapore. 22 SP Annual Report 08 From far left: MR PAUL ADAMS Managing Director & Acting Executive General Manager (Infrastructure Services) Jemena Ltd MR WONG CHIT SIENG Managing Director SP Services & Head (Information Systems) MR LIM HOWE RUN Managing Director Strategic Investments & Deputy Managing Director & Acting Executive General Manager (Asset Strategy) Jemena Ltd MS CHI PING HUEY General Counsel & Company Secretary MRS LYNN LOH Head (Human Resource & Administration) Ms Chi Ping Huey Ms Chi Ping Huey, General Counsel & Company Secretary, provides legal advice on all the Group’s major M&A deals including the acquisition of SPI (Australia) Assets in 2007. She is responsible for implementing policies involving board governance and reviews complaints under the Whistleblower policy for submission to the Audit Committees. Prior to joining SP, Ms Chi held various senior positions in the Singapore Technologies Group including Head (Legal) at Singapore Aerospace Ltd. She has more than 20 years of legal experience which spans negotiations with military and commercial customers, M&As, banking projects and a working stint with leading aviation insurance brokers and underwriters in The Lloyds/London. She began her career with a major local bank and has also been in private practice. Ms Chi is a member of the Singapore Law Academy. An OCBC scholar, she has a Bachelor of Law degree with Honours from the National University of Singapore and was admitted as an Advocate and Solicitor to the Supreme Court in 1985. Mrs Lynn Loh Mrs Lynn Loh, Head (Human Resource and Administration), has over 20 years’ experience in human resource. Mrs Loh is overall responsible for the Human Resource policies, programmes and services of SP. Before joining the Group, she was with the Central Provident Fund Board, Changi International Airport Services, PepsiCo Group International and Singapore General Hospital. She is the Vice President on the Council of Singapore Human Resources Institute and a National Assessor for the People Developer Standard. She is also a member of the Manpower Skills and Training Council of Singapore Workforce Development Agency, a statutory board under the Ministry of Manpower. Mrs Loh was previously a resource member of the Government Parliamentary Committee for Manpower. Mrs Loh holds a Bachelor of Arts degree majoring in Economics from the National University of Singapore and a Master of Business Administration (Accountancy) from the Nanyang Business School, Nanyang Technological University. As at 17 April 2009 SP Annual Report 08 23 OPERATIONS REVIEW SINGAPORE Operations Singapore Operations has four main business units – SP PowerAssets, PowerGas, SP PowerGrid and SP Services. It also has a technical management consultancy arm, SP Global Solutions, and related businesses such as Singapore District Cooling. OPERATIONS REVIEW SP POWERASSETS Meeting Singapore’s Growing Power Needs SP PowerAssets invests in infrastructure development to meet the growing power needs of Singapore. 26 SP Annual Report 08 SP PowerAssets owns the electricity transmission and distribution assets in Singapore. Its S$7.2 billion fixed assets base comprises modern and robust networks at 400kV, 230kV and 66kV for transmission, and 22kV, 6.6kV and 400V for distribution. In FY 08/09, SP PowerAssets continued its network infrastructure development, planning for additional capacity to meet the growing power needs of Singapore. Progressive upgrading and replacement of existing transmission assets were also carried out to ensure the continuity of the electricity grid’s track record of high reliability. � � � � � � � ��� ����� ������� �� ���� ����� ���������� was commissioned in September 2008 and an additional 400/230kV 500MVA transformer in February 2009 to further reinforce the 400kV transmission connection to the eastern part of Singapore. ����� ����������� ���� �� ��� ��� �� ������� Drive-Labrador cable tunnel was completed in March 2009. Installation of 400kV cables for the two Seraya-Labrador 400kV circuits, targeted to be completed in the third quarter of 2009, will bring more power from the western to the central part of Singapore. ��� ������������ �� � ��� ����� ���������� at Rangoon Road to meet growing electricity demand in central Singapore will commence in 2009 and is targeted for commissioning by end-2013. ����� �������� ������ ��� ����� ������� 75MVA transformers were commissioned and a new 230kV substation at Labrador will be commissioned in the second quarter of 2009 to meet load growth. ����� ����� ����������� ��� ��������� ����� constructed at Marina South, Choa Chu Kang and Tampines. ������� �������� ���� ����������� ��� ����� progressively upgraded as part of a network renewal programme. Five substations have since been commissioned. The Harbour Drive-Labrador cable tunnel will bring more power to the central part of Singapore when cable installation is completed. SP PowerAssets is developing two major cable tunnels for the future installation of transmission cables on the island. Soil investigation work is expected to be completed in the third quarter of 2009. The project, comprising a 17 km East-West tunnel and an 18 km North-South tunnel, will provide secure corridors for faster and more efficient installation of transmission cables, as well as enable ageing 230kV circuits to be replaced in an orderly and controlled manner. SP PowerAssets concluded a second 5-year regulatory price reset with the Energy Market Authority (EMA). Grid charges were reduced by an average of 8-11 per cent in various customer supply categories on 1 October 2008, without compromising the high quality performance standards of its transmission and distribution networks. SP Annual Report 08 27 OPERATIONS REVIEW POWERGAS Being Singapore’s Sole Licensed Gas Transporter and System Operator Laying of gas transmission pipelines that will cater to future needs. 28 SP Annual Report 08 PowerGas owns the gas transmission and distribution networks in Singapore which include two onshore natural gas receiving facilities and 2,900 km of underground pipelines. With the transfer of Sembcorp Gas pipeline assets to PowerGas on 15 September 2008 following the restructuring of the gas market, PowerGas became the sole licensed gas transporter and gas system operator in Singapore, delivering both natural gas and town gas. New Gas Industry Framework The new restructured gas market came into effect on 15 September 2008 with the implementation of the Gas Network Code (GNC) regime, a multi-lateral contract between PowerGas and gas shippers for transporting natural gas from injection points to end-user offtake points. PowerGas has developed and is operating the web-based 24/7 Gas Transportation IT System Solution (GTSS) which manages the transportation of natural gas according to the rules of the GNC. Enhancing the Town Gas Network PowerGas successfully extended the town gas network by 15.6 km to reach more customers in new public housing estates, private residences and commercial premises. In FY 08/09, PowerGas also renewed and reinforced 6.9 km of pipelines and diverted 1.6 km of pipelines affected by the Mass Rapid Transit (MRT) system extension works. PowerGas continues to renew and reinforce gas pipelines. PowerGas is the sole licensed gas transporter and gas system operator in Singapore, delivering both natural gas and town gas. SP Annual Report 08 29 OPERATIONS REVIEW SP POWERGRID Management MR SIM KWONG MIAN Managing Director MR JOHN BAPTIST TAY Deputy Managing Director (Gas) MR JIMMY KHOO Deputy Managing Director (Planning & Strategy) MR CHUNG CHOON HEONG Deputy Managing Director (Network Development) MR CHANG SWEE TONG Deputy Managing Director (Network Management) MR CHENG SEE TAU General Manager (Operations & Maintenance) MR LAW CHIN HO Director (Finance) & Head (Regulatory) DR YOON KOK THEAN Director (Procurement) 30 SP Annual Report 08 SP POWERGRID Ensuring High Reliability SP PowerGrid manages and operates the electricity and gas transmission and distribution networks in Singapore. SP PowerGrid’s network performance for its electricity operations in FY 08/09 was well within regulatory targets and an improvement over the previous year’s performance. Its network performance for gas operations was also well within regulatory targets. For FY 08/09, electricity’s System Average Interruption Duration Index (SAIDI) score of 0.69 minutes was better than the 1.14 minutes registered in FY 07/08. Gas’ SAIDI score of 0.125 minutes was a significant improvement over FY 07/08’s score of 0.491 minutes. Electricity’s System Average Interruption Frequency Index (SAIFI) score of 0.016 was better than its score of 0.023 in FY 07/08. Gas’ SAIFI score was 0.0020 interruptions compared to the previous year’s score of 0.0011. SAIDI measures the average duration of unplanned electricity or gas interruptions a consumer experiences in a year and SAIFI, the average number of such interruptions. SP PowerGrid’s impressive network performance is founded on the use of cutting-edge technology in condition monitoring, rigorous quality processes, and investment in network infrastructure and staff expertise. Condition Monitoring for Better Performance SP PowerGrid’s comprehensive efforts in condition monitoring continued to enhance electricity network performance with 43 potential failures averted in FY 08/09. The Oscillating Wave Testing System (OWTS), which monitors the condition of the underground 66kV, 22kV and 6.6kV cables, has successfully prevented 88 potential cable failures since its inception in January 2006. In FY 08/09, OWTS was conducted on nine 66kV circuits. OWTS for 230kV cables will be introduced in May 2009. The wireless SCADA system helps SP engineers monitor the electricity grid, swiftly isolate any fault and restore supply. The 230kV switchgear in Kampong Java substation was fitted with an online condition monitoring system. Remote Monitoring of Distribution Network The installation of the wireless Supervisory Control and Data Acquisition (SCADA) system for remote monitoring of the 6.6kV distribution network is in progress. By the third quarter of 2009, some 1,000 substations supplying densely populated public residential estates will be fitted with wireless SCADA to enable real-time monitoring of the network and further reduce outage time. As of February 2009, installation works at 800 substations were completed. Enhancing Communication Network The Time Division Multiplex over Ethernet (TDMoE) technology was commissioned and deployed in the Metropolitan Area Network (MAN) in December 2008. The use of this new technology for SCADA application resulted in lower maintenance costs. SP Annual Report 08 31 OPERATIONS REVIEW The tender for the wireless network connection to the MAN was awarded in January 2009. The wireless technology will be deployed at about 100 substations and installations to further extend the coverage for applications like SCADA, condition monitoring, power quality monitoring and security surveillance. Strengthening Customer Relationships During the year in review, SP PowerGrid implemented new initiatives aimed at serving its customers better. In August 2008, a new Power Quality Interest Group was formed for the essential services industry. This enables SP PowerGrid to better support the sector’s needs and future growth. Three meetings were held for the semiconductor & electronics, pharmaceutical, and chemical & petrochemical interest groups. Chief Executive Officers representing these high-tech industries on the Power Quality Advisory Panel also met in April 2008 to discuss power quality issues across industry sectors. SP PowerGrid organised four half-day workshops in July 2008 and a two-day workshop in February 2009 to share with large industrial and commercial customers its knowledge on the latest technologies and practices to enhance power quality. SP PowerGrid embarked on new initiatives to provide a higher level of customer service to affected public housing residents during electricity supply interruptions. Standby teams working on three shifts and decentralising mobile generators to six locations have improved the response time to site and shortened supply restoration time by up to 30 minutes. Service vans with LED panels are deployed to keep customers informed on the progress of supply restoration during an outage. As part of efforts to keep customers informed during supply interruptions, service vans with LED panels are deployed to provide residents with timely information on the progress of supply restoration. ISO Certification SP PowerGrid first obtained its ISO 9001:2000 certifications in 2002. In FY 08/09, it received ISO 9001:2000 recertification for the development and management of its electricity transmission and distribution networks, and for its gas operations covering network management and system operations. It also continued to comply with ISO 9001:2000 standards for the operation, control and monitoring of the distribution network as well as the management of network incidents and customer calls. These certifications affirm SP PowerGrid’s institutionalised quality processes that drive consistently high performance standards. SP PowerGrid’s institutionalised quality processes drive consistently high performance standards. Challenging Economic Environment The current economic downturn has impacted on domestic electricity demand. Electricity demand began to slide in the second half of the year as the deepening global financial crisis took its toll, particularly on Singapore’s export-dependent industries. In FY 08/09, the volume of electricity transmitted and distributed shrank by 1.0 per cent year-on-year to 37,464 GWh. The reduction in electricity consumption was broad-based, affecting both the manufacturing and non-manufacturing sectors. 32 SP Annual Report 08 SP POWERGRID Singapore Has One Of The World’s Best Performing Electricity And Gas Networks SYSTEM AVERAGE INTERRUPTION DURATION INDEX (SAIDI) measures the average duration of unplanned interruptions a consumer experiences in a year 10 2.5 Interruption minutes per customer per year 8 6 4 2 0 5.37 5 3.7 4 3.85 2.2 2.25 1.21 1.14 1.99 0.69 0.47 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Up to Mar 09 Electricity SAIDI – Singapore Interruption minutes per customer per year 2.0 1.5 1.0 0.5 0 2.101 1.422 1.020 0.577 0.451 0.331 0.387 0.491 0.269 0.149 0.199 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Up to Mar 09 Gas SAIDI – Singapore 0.125 SYSTEM AVERAGE INTERRUPTION FREQUENCY INDEX (SAIFI) measures the average number of unplanned interruptions a consumer experiences in a year Interruptions per customer per year 0.12 0.10 0.08 0.06 0.04 0.02 0.00 0.106 0.090 0.073 0.071 0.053 0.097 0.097 0.041 0.011 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Up to Mar 09 Electricity SAIFI – Singapore 0.031 0.023 0.016 Interruptions per customer per year 0.025 0.020 0.015 0.010 0.005 0.000 0.0216 0.0147 0.0105 0.0058 0.0035 0.0028 0.0021 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Up to Mar 09 Gas SAIFI – Singapore 0.0047 0.0040 0.0011 0.0020 0.0016 KEY NETWORK INDICATORS – SINGAPORE % Change Year-On-Year 10 8 6 4 2 0 (2) (4) 1.6 (2.4) 5.0 4.1 3.8 2.4 9.3 7.3 4.6 4.4 8.4 3.3 7.8 4.2 1.5 1.1 Real GDP Growth (%) Demand Growth (%) 01 02 03 04 05 06 07 08 Calendar Year GWh 40,000 35,000 30,000 25,000 0 29,960 31,446 32,199 33,635 34,995 36,287 37,838 37,464 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Financial Year Real GDP Vs Electricity Demand Growth (% Change) Electricity Transmitted and Distributed (GWh) SP Annual Report 08 33 OPERATIONS REVIEW SP SERVICES Management MR WONG CHIT SIENG Managing Director MRS JEANNE CHENG Deputy Managing Director MR LAWRENCE LEE Acting Director (Operations) MS LILY TAN Acting Director (Information Systems) MR HEY BONG KOI Head (Finance & Accounts) 34 SP Annual Report 08 SP SERVICES Putting the Customer First SP Services provides every household and business in Singapore with a convenient and efficient one-stop utility service, including for electricity, water, and piped gas supplies. As the Market Support Services Licensee, SP Services offers meter data management, billing and payment collection services to the electricity market. It also facilitates competition in the retail market by enabling consumers to switch seamlessly between retailers, and between buying from retailers and from the electricity pool. For the convenience of customers, SP Services also provides billing and payment collection on behalf of other utility service providers such as the PUB for water charges, City Gas for gas charges, and the various refuse collection companies for refuse removal fees. Enhancing operational efficiency and cost effectiveness without compromising service quality will continue to be the key to SP Services’ success in weathering the current economic crisis. During the year in review, SP Services continued to focus on re-engineering its operations and business processes, combining the use of technology with service innovation in meeting the evolving lifestyle needs and expectations of IT-savvy customers today. Leveraging technology, the Integrated Call Centre Home Agent Pilot Scheme allows customer service officers to attend to service requests from home and process transactions for customers’ accounts remotely. The initiative has increased work productivity and provided flexible work arrangements for employees. Delivering Service Excellence Providing quality service and greater convenience has always been a key priority for SP Services. To assess its service performance level, SP Services engages independent research agencies to conduct customer surveys across all service touch points. The surveys also allow us to proactively gather feedback from customers for service improvements. Results from the customer satisfaction survey conducted during the year showed that SP Services was ranked top among local benchmarked service providers in Singapore for the fourth consecutive year. Leveraging Technology to Delight Customers Tapping on modern info-communications technology, SP Services embarked on a pilot scheme to explore the work-from-home concept for its field operations and Integrated Call Centre staff, with the aim of achieving savings in rental and other overhead costs which could be a win-win proposition for customers, staff and the business in the long run. The Wireless Workforce Management System enables technicians to receive their job orders daily for supply turn-on and cut-off through their PDAs. The application of wireless communications technology minimises the technicians’ travelling time and enhances their punctuality for appointments with customers. The Wireless Workforce Management System is used in field operations to provide real-time information for better customer servicing and optimal resource allocations. SP Annual Report 08 35 OPERATIONS REVIEW Introduced in 2005, the SP Services Pay-As-You-Use Metering Scheme continued to help 13,000 customers with utility arrears better manage their consumption while paying for their arrears over time. SP Services was ranked top among local benchmarked service providers in Singapore for responsive and courteous service. Customers were satisfied with the responsive and convenient services they received. SP Services staff were also rated highly for their responsiveness, helpfulness and courtesy, and providing clear information. In its latest ‘Mystery Shopping Audit’ conducted annually, its service performance index leapt from 88 per cent in the previous year to 92 per cent this year. In another benchmarking study conducted by KEMA, an international utility consultancy, SP Services scored highly for performance standards in comparison with its peers in other countries. The survey findings also highlighted that SP Services placed emphasis on its customer service while maintaining cost-effectiveness. It has the lowest cost-toserve per customer and the lowest metering cost. Customer-driven, Service-oriented Working in close partnership with utility service providers, SP Services’ Customer Service Centre is co-located with City Gas at Somerset Road. Customers enjoy a seamless one-stop convenience for all their utility needs – electricity, water and piped gas. Major Projects SP Services completed a major upgrading of its billing and payment system during the year. After 11 months of rigorous system integration and user acceptance tests, the new Enterprise Business System went live on 9 August 2008. This initiative was recognised under SAP’s Awards of Customer Service Excellence 2009 (ACE) scheme as the Most Outstanding Project. This is an award given to project partners who have achieved exemplary performance in project implementation, demonstrated their commitment to providing good customer satisfaction, and invested in training. The upgraded system enables SP Services to enhance the quality of its customer services and streamline its business processes for better customer service. It allows for faster information retrieval and reduces transaction time, contributing towards an enhanced service experience and customer satisfaction. Moving forward, SP Services will further enhance the system to gain even more operational efficiencies. In support of market liberalisation, SP Services participated in the Electricity Vending System (EVS) pilot project trial run initiated by Energy Market Authority. The objective of the EVS is to re-engineer the electricity retail process to provide competition through smart meter technology and e-payment systems. Smart meters will enable consumers to choose from different retail packages and help them better monitor their consumption. Service Commitment Going forward, providing quality service and greater convenience for customers will remain SP Services’ focus in an increasingly competitive and demanding environment. Founded on its strong service-oriented culture, SP Services will continue to explore ways to further improve its customer service and operational efficiency. Young visitors learn about efficient use of electricity at SP Services’ Electricity Efficiency Centre. 36 SP Annual Report 08 SP GLOBAL SOLUTIONS New Markets, Enhanced Capabilities SP Global Solutions (SPGS), as a recently established consultancy arm of Singapore Power, leverages the experience, operational expertise and domain knowledge of our people and institutions to provide practical solutions, services as well as training to a widening market of utilities clients in the region. FY 08/09 was an engaging and meaningful year for SPGS as it continued to build the capacity in providing a wider spectrum of services to reach out to new markets and to strengthen its network of partners. Besides taking on a number of new projects, SPGS also hosted numerous overseas delegations in Singapore and participated in various local and overseas industry forums. SPGS made headway in India, securing a consultancy contract with CESC Limited. CESC Vice Chairman Sanjiv Goenka (left) and SP Chief Operating Officer Ong Boon Hwee sealed the partnership with a warm handshake. Delegates from Beijing Electric Power Company participating in hands-on workshops in Singapore to learn different condition monitoring techniques. SP PowerGrid engineers conducting Oscillating Wave Testing System tests in Kolkata, India. SP Annual Report 08 37 OPERATIONS REVIEW CEOs of companies under Druk Holding and Investments Limited of Bhutan were hosted by SP Senior Management and engaged in a lively exchange of views and possible collaboration. SPGS conducted a seminar on Condition Monitoring for Taiwan Power Company. The seminar, held in Taipei, was attended and well received by engineers and management from Taipower. Through SPGS, overseas delegates from Shenzhen Gas Corporation attended training on gas network conducted by SP AusNet in Australia. Delegates from Guangzhou Power Supply Bureau receiving a briefing on the role of the Geographical Mapping System in operations management of the network. 38 SP Annual Report 08 SINGAPORE DISTRICT COOLING Working Towards Sustainable Development Singapore District Cooling, an SP joint venture company, produces chilled water for the air-conditioning of commercial buildings. It completed its third year of commercial operation with performance exceeding its own targets and regulatory requirements. In FY 08/09, revenue rose to S$8.6 million and an EBITA of S$0.8 million was achieved. The Supply Availability Index 1 was 99.99 per cent compared to the regulatory standard of 99.50 per cent. Growing its Customer Base Several major development sites, including the Integrated Resort and Marina Bay Financial Centre, will soon be connected to the district cooling system. The demand for district cooling system is projected to grow six to seven fold from the current base of 18 MWr to 120 MWr by mid-2010. Expanding Capacity To meet the quantum leap in demand for district cooling service, Singapore District Cooling is implementing major capital projects to expand the district cooling system. An aggregate of 100 MWr production capacity will be added to the existing district cooling plant located at One Raffles Quay Development and the new plant located at the Integrated Resort. A new piping network is being installed within the Common Services Tunnels to link the two district cooling plants and various customer intake stations. The capital projects are funded with a S$140 million limited recourse credit facility. The successful funding arrangement in the current cautious financial market is a testament to the robust fundamentals of the project. Complementary Services for Environment Protection In an initiative to contribute to environmental sustainability, Singapore District Cooling will be providing hot water services to the hotels and convention centre of the Integrated Resort. Heat pumps will extract the heat energy for hot water production that would otherwise be discharged to the atmosphere at the cooling towers. Installation of a new piping network in the Common Services Tunnels will link the district cooling plants and customer intake stations. OHSAS Certification for Occupational Health & Safety Singapore District Cooling achieved its BS OHSAS 18001:2007 certification in July 2008, affirming the company’s commitment and institutionalised processes towards occupational health and safety management. The existing district cooling plant also achieved zero accident record for work safety during the year. Looking Ahead Singapore District Cooling will continue to work with government agencies and building owners to broaden its customer base beyond its current service area at Marina Bay. 1 Measured in terms of supply temperature being maintained within specifications SP Annual Report 08 39 OPERATIONS REVIEW AUSTRALIA Operations Australia Operations has four main business units – SP AusNet, SPI Management Services, SPI (Australia) Assets and Jemena Asset Management Companies. Its business activities span Victoria, Queensland and New South Wales. OPERATIONS REVIEW SP AUSNET Management MR NINO FICCA Managing Director MR CHARLES POPPLE Group General Manager (Networks Strategy and Development) MR NORM DREW Group General Manager (Integrated Network Services) MR GEOFF NICHOLSON Chief Financial Officer & General Manager (Finance and Strategy) MS SUSAN TAYLOR General Counsel and Company Secretary MR JOHN KELSO General Manager (Select Solutions) MR JOHN AZARIS General Manager (Operations & Services) MS CLAIRE HAMILTON General Manager (Risk and Assurance) MR PETER MERRITT General Manager (Information Technology) MR MICHAEL BESSELINK General Manager (People and Safety) (acting) 42 SP Annual Report 08 SP AUSNET Sustainable Growth SP AusNet is the largest diversified energy infrastructure business in Victoria. It owns and operates a state-wide electricity transmission network, as well as an electricity distribution network in eastern Victoria and a gas distribution network in western Victoria. In FY 08/09, SP AusNet connected more than 26,000 new customers to its gas and electricity network. Undertaking maintenance works near Benalla. SP Annual Report 08 43 OPERATIONS REVIEW SP AusNet’s financial performance and transmitted 51,777 GWh of electricity. SP AusNet invested A$140.1 million to improve network performance on the transmission system. Electricity Distribution The electricity distribution network carries electricity from the transmission network to substations for distribution to connected electricity customers in eastern metropolitan Melbourne and eastern Victoria. The network is 47,000 km in length, spans an area of approximately 80,000 square km and services more than 600,000 customers. SP AusNet crew working on distribution insulators. Electricity Transmission SP AusNet’s electricity transmission network comprises over 6,500 km of transmission lines that carry electricity from power stations to electricity distributors and large customers in Victoria. The network is centrally located among the five eastern states of Australia that form the National Electricity Market and provides key links between the electricity transmission networks of South Australia, New South Wales and Tasmania. In FY 08/09, the electricity transmission network contributed A$492.2 million in regulated revenue to In FY 08/09, the electricity distribution network contributed A$509.2 million in revenue to SP AusNet’s financial performance, and distributed 7,894 GWh of electricity. SP AusNet invested A$262.4 million to improve network performance and connected 9,500 new customers across eastern Victoria. The electricity distribution business was affected in 2009 by bushfires, extreme heat conditions and storms. SP AusNet, however, continues to monitor and improve business resilience and operational response to incidents of this nature. Gas Distribution SP AusNet’s 10,000 km distribution pipelines carry natural gas from the transmission network to over 554,000 customers across 60,000 square km in central and western Victoria. It also owns 183 km of gas transmission pipelines. In FY 08/09, the gas distribution network contributed A$179.2 million revenue and distributed 75.3 PJ of gas. SP AusNet invested A$69.0 million to expand the network and connected 17,100 new customers across western Victoria. Gas distribution works with gas meters. 44 SP Annual Report 08 SP AUSNET The Condition Monitoring team identifies potential network failures before they occur. SP AusNet secured long-term operational agreements with the Singapore Power Group to deliver competitive niche services to the Jemena group of companies. These arrangements allowed SP AusNet to extend its footprint to implement these services into New South Wales for the first time and obtain operational efficiencies through the Information Technology area. SP AusNet also implemented a new operating structure to provide more focus on growing this important part of its business to the wider market. This year, SP AusNet became the first business in Australia to receive certification to British Asset Management Specification – BSI PAS 55. The specification is recognised as the leading global standard against which assetintensive industries, such as utilities, are benchmarked. Looking ahead, SP AusNet is planning the rebuilding of new terminal stations in Thomastown, Ringwood, Richmond, Geelong and Hazelwood. It is also planning the securing of electricity supply for an additional 120,000 customers in the Northern corridor growth region of Melbourne. SP AusNet will also continue its extensive gas mains renewal programme, improving supply capacity and making the gas distribution network safer and more reliable. SP Annual Report 08 45 OPERATIONS REVIEW SPI (AUSTRALIA) ASSETS / JEMENA Management MR PAUL ADAMS Managing Director & Acting Executive General Manager (Infrastructure Services) MR LIM HOWE RUN Deputy Managing Director & Acting Executive General Manager (Asset Strategy) MR IAN WELLS Chief Financial Officer MR DAVID CLERK Executive General Manager (Strategy and Business Development) MR SHAUN REARDON Executive General Manager (Infrastructure Investments) MS LINDA DAWSON Executive General Manager (People, Safety and Services) MS CATHY BIBBY Chief Information Officer MS YASMIN BROUGHTON General Counsel and Company Secretary 46 SP Annual Report 08 SPI (AUSTRALIA) ASSETS / JEMENA Building on Core Capabilities SPI (Australia) Assets Pty Ltd, together with its Jemena subsidiaries, builds, owns and maintains a combination of major electricity, gas and water assets. In FY 08/09, new growth paths were achieved through the acquisition of electricity and water infrastructure service companies. It also focused on optimising its core business in the areas of electricity and gas and asset management services, and on leveraging its people and safety capabilities. A New Beginning The Jemena brand was launched in August 2008, marking a new beginning for the company renowned for its high quality gas, water and electricity infrastructure and contracted works services. Jemena is an aboriginal word meaning ‘to hear, to listen and to think’, and it aptly represents how the company conducts its business and focuses on delivering the best services. Jemena Gas Network In FY 08/09, the gas distribution network contributed A$373 million in revenue to the Group and distributed 100 PJ of gas. A total of A$96 million was invested to maintain and expand the network. This investment was across a range of activities including market expansion, capacity development, facilities renewal and upgrade, metering, mains and services renewals, and ancillary equipment. The customer base continued to grow with the connection of an additional 25,013 new customers. Major projects included the construction of a 2.5 km steel main, at approximately A$5.0 million, through one of Sydney’s oldest and most congested areas, the Eastern Suburbs. A Jemena worker conducts maintenance work on gas transmission pipelines. SP Annual Report 08 47 OPERATIONS REVIEW Workers consult with one another before fixing overhead power lines. Jemena Electricity Networks Network revenue of A$200 million was A$1.7 million above target and A$4.0 million higher than the prior year, reflecting the higher level of energy delivered – 4,446 GWh compared to 4,021 GWh in the prior year. Capital investment in the network of A$100 million included A$25 million of investment in the initial design and planning phase of the Advanced Interval Meter Rollout Program mandated by the Victorian Government. A maintenance optimisation project was delivered by Jemena to reduce the ongoing maintenance costs on the Jemena Electricity Networks. This project realised a A$1.7 million benefit in FY 08/09 by adjusting maintenance frequencies, scopes and resource requirements, aligning them to industry benchmarks and completing risk assessments to ensure the changes were acceptable. Development of Major Assets The major Mila Compressor Station project was completed in July 2008 and has increased the pipeline capacity by 24 per cent. The pipeline transports natural gas from Bass Strait to Canberra, Nowra, Tallawarra (near Wollongong), Port Kembla and Sydney. The Queensland Gas Pipeline expansion project, consisting of the installation of the Rolleston and Banana Compressor Stations and Looping from Oombabeer to Callide, will increase the pipeline capacity by 69 per cent when completed in 2010. The addition of compression will also allow for more effective control of the pipeline. A significant new delivery point is also being constructed at Yarwun to deliver gas to Rio Tinto’s upgraded aluminium refinery. 48 SP Annual Report 08 SPI (AUSTRALIA) ASSETS / JEMENA In an Australia-first, Jemena designed and built the A$104 million Colongra Lateral gas pipeline which delivers gas to the new Delta peaking power station near Newcastle, and provides sufficient gas storage to allow the station to run at full capacity for five hours in the event of a major interruption to the normal supply of gas. Safety First During the year in review, the business faced a number of challenges in the safety arena. In response to these challenges Jemena put in place systems and procedures to focus on and help achieve “Zero Harm – Safety First”. The new initiatives include establishing electricity and gas safety taskforces charged with identifying, capturing and implementing new ideas to improve safety in the business, such as independent performance reviews to recommend change, ensuring all staff undertake “Safety First” training and rewarding the display of safety behaviour. A monthly Safety Hero Award was also established to recognise individuals or teams for their outstanding contribution to safety at Jemena. FY 09/10 will see a continued focus on safety and ensuring “Zero Harm – Safety First”. Heatwave Heroes In late January 2009, Victoria experienced unprecedented hot weather conditions, resulting in three separate emergency events. The staff of Jemena worked tirelessly to restore power during these extraordinary conditions. Its field personnel, along with contractors and line workers from around the country, worked for days in temperatures exceeding 40°C to repair network damage and restore power to over 200,000 customers. Equally important were those who managed the response around the clock as well as Jemena volunteers who looked after the field personnel and answered calls at the call centre. Fixing a power line in Melbourne. The Year Ahead Jemena is on track to deliver over A$300 million of contracted services work in FY 09/10, as well as an additional A$300 to A$400 million per annum in contracts for work over the next three to five years as a result of being appointed to various client panels. The new structure supports the growth in Contracting Services while focusing on maximising return from its assets, developing new assets and partnering with other developers where it makes good business sense. SP Annual Report 08 49 AWARDS & ACCOLADES Business Alliance Award 2008 � Singapore Power Group by the Australian Chamber of Commerce, Singapore Best Syndicated Loan (Best Australia Deals 2008) � SPI (Australia) Assets Pty Ltd, by The Asset ISO/IEC 17025 for Calibration and Measurement of Meters � �������� by Singapore Accreditation Council-Singapore Laboratory Accreditation Scheme, 2005 to present BSI PAS 55 Certification to British Asset Management Specification ISO 9001:2000 Certification for Quality Management System � �� ������ by Asset Management Consulting Limited, 2008 � � � � �� ��������� (Distribution Control & Customer Services Section) by Certification International, FY 06/07 to present �� ��������� (Network Development) (Electricity) by Certification International, FY 02/03 to present �� ��������� (Network Management) (Electricity) by Certification International, FY 02/03 to present �� ��������� (Gas Operations) by SGS International Certification Services Singapore Pte Ltd, FY 08/09 ISO 9001:2008 Certification for Quality Management System � �� �������� by BSI Management System, FY 04/05 to present Singapore Quality Class Certification � �� �������� by SPRING Singapore, 2006 to present SAP Most Outstanding Project Award � �� ��������, 2009 OHSAS Certification for Occupational Health & Safety Management System � ��������� �������� �������, 2008 People Developer Standard by SPRING Singapore � ��������� ����� �����, 2000 to 2010 � �� ���������, 2005 to 2012 � �� ��������, 2005 to 2009 Singapore H.E.A.L.T.H. (Helping Employees Achieve Life-Time Health) Award, Gold � ��������� ����� ����� by Health Promotion Board, 2004 to 2010 50 SP Annual Report 08 Work-Life Achiever Award � ��������� ����� ����� by Ministry of Manpower, 2006 to 2010 Leading HR Practices Awards in Employee Relations & People Management, Quality Work-Life, and Health & Employee Wellness, the Singapore HR Awards � ��������� ����� ����� by Singapore Human Resources Institute, 2008 Special Mention in Learning & Human Capital Development, E-HR Management, and HR Communications, the Singapore HR Awards � ��������� ����� ����� by Singapore Human Resources Institute, 2008 Minister for Defence Award � ��������� ����� ����� by Ministry of Defence, 2005 to 2010 The Minister’s Honours Roll & Minister for Home Affairs Award � ��������� ����� ����� by Ministry of Home Affairs, 2008 to 2010 Labour Relations/Human Capital Management Award, Ethical Investor Australian Sustainability Awards � �� ������, 2008 SHARE Corporate Gold Award � ��������� ����� ����� by Community Chest, 2003 to 2007 5-Year Outstanding SHARE Award � ��������� ����� ����� by Community Chest, 2007 Special Events Platinum Award � ��������� ����� ����� by Community Chest, 2006 to 2007 SP received the 2008 Business Alliance Award from the Australian Chamber of Commerce in Singapore for our outstanding contributions to the Singapore-Australia business relationship. SP Annual Report 08 51 OPERATIONAL SUPPORT HUMAN RESOURCE Developing Capabilities Staff expertise and commitment contribute significantly to SP’s superior performance. As such, the company invests considerable resources to develop the skills and core competency of its workforce, and expand and groom its talent pool. This is further supported by a healthy work-life balance strategy and a strong union-management partnership. Continuous Staff Training During the year in review, SP invested an average of 54 training hours for each staff. An annual Total Training Plan was drawn up, incorporating staff’s Individual Learning Roadmaps. Team Engagement and Motivation (TEAM), a corporate core programme, was launched to provide each functional section with the opportunity to bond and foster a close and supportive relationship through fun and challenging activities. This was supplemented by the Leading Excellence and Development (LEAD) programme for unit heads to hone their people management skills and leadership style so that they can better manage and engage their teams. 76 employees were sponsored for part-time courses in FY 08/09 under the Union of Power and Gas Employees (UPAGE)-SP MOU. To date, the scheme has sponsored a total of 348 employees for nationally certified programmes leading to a technical certificate or a diploma. “My Learning Path” was launched to encourage junior staff to upgrade themselves through the national Employability Skills System on workplace literacy and numeracy. Some 38 employees have completed either the Beginner or Intermediate level. To encourage continuous learning among staff, SP put together 54 e-courses, four of which are specific to its business and developed in-house, on its Human Resource Management System. SP is committed to promoting work-life balance through various Quality Life Programmes, such as the Sports for Life event. 52 SP Annual Report 08 SP’s scholars and Management Associates are trained and developed through attachments, job rotations and specially tailored training courses. Five employees from SP and one from SP AusNet were given overseas postings ranging from six months to more than two years, to provide them with international exposure and professional development opportunities. Such attachments also facilitate the exchange of technical expertise and knowledge across countries. Growing and Grooming the Talent Pool SP awarded seven scholarships in FY 08/09, bringing its pool of undergraduates to 21. Upon graduation, these scholars will undergo a series of job rotations under the Management Associate Scheme. They will be exposed to different aspects of SP’s business and operations and specially tailored training programmes in finance, business and personal development to equip them for corporate management roles. In Australia, SP AusNet continued to recruit apprentices, graduates and trainees under its ‘Skilling for the Future’ programme to ensure operational sustainability. The Jemena Companies also conducted a number of graduate programmes, aimed at developing a talent pool for the business to ensure leadership succession. These programmes have enjoyed much success, attracting excellent candidates. They have contributed to positive retention rates and garnered positive feedback from both managers and employees alike. Jemena relaunched its Development Programmes aligned with its business strategy, focusing on building people management and leadership capability at all levels within the company. More than 200 staff benefited from the programmes. An integrated talent management initiative was also rolled out to support staff development. This process identifies successors for business critical roles and career moves. Development opportunities are subsequently planned for these successors. The successor development programme instills market confidence and ensures a competitive edge through the retention of knowledge and skills within the business. SP Annual Report 08 53 SP’s support of the UPAGE Endowment Fund was a testament to the strong partnership between SP and UPAGE. Recognition by Awards For its efforts in promoting a healthy work-life balance among staff and nurturing a dynamic and meaningful work environment, SP was accorded the Singapore H.E.A.L.T.H (Helping Employees Achieve Life-Time Health) Gold Award by the Health Promotion Board in 2008 and the Work-Life Achiever Award by the Ministry of Manpower. SP also won three Leading HR Practices Awards from Singapore HR Institute for Employee Relations & People Management, Quality Work-Life, and Health & Employee Wellness. It received special mention in three other categories, namely Learning & Human Capital Development, E-HR Management and HR Communications. SP was a finalist in the HRM Awards 2009 for the categories of “Best Training, Learning and Development”, and “Best Use of Technology”. In Australia, SP AusNet was awarded the Labour Relations/Human Capital Management award at the 2008 Ethical Investor Australian Sustainability Awards. The award recognised SP AusNet’s acknowledgement of the greater contribution that women can make to a male-dominated engineering industry and its focus on diversity. Strategic Union-Management Partnership SP enjoys a strong partnership with UPAGE that is built on an open and consultative approach to resolving operational and strategic issues. In a milestone partnership with UPAGE to create a harmonious and progressive work environment, SP signed the Employers’ Pledge of Fair Employment Practices in April 2008. The pledge reinforces its commitment towards endorsing the key principles of fair and merit-based employment practices, including equal opportunities for training and development for employees. SP also pledged S$200,000 a year for five years to the UPAGE Endowment Fund. The Fund contributes towards the long-term financial independence of UPAGE, thereby assisting the Union to continue providing benefits to its members. 54 SP Annual Report 08 OPERATIONAL SUPPORT INFORMATION SYSTEMS Investing in Technology Technology enables the automation of key processes, freeing staff from manual tasks and improves productivity. At SP, IT initiatives are aligned closely with business unit goals to ensure efficient and effective execution of business strategies. Common shared systems and infrastructure across the Group drive greater synergies. Supporting the Gas Network The Singapore gas market was de-regulated on 15 September 2008. PowerGas developed and launched a web-based IT system, Gas Transportation System Solution (GTSS), to manage the transportation of natural gas according to the rules of the Gas Network Code. The Information Systems Department (ISD) worked closely with the system integrator, Accenture, to ensure that the design of the GTSS is robust and reliable. The supporting infrastructure and computer operations processes were tested very thoroughly to ensure that they meet system performance expectations and reliability standards. Enhancing Human Resource Management with Business Intelligence Tools ISD spearheaded the design and implementation of a business data warehouse for business intelligence for the Human Resource department. The solutions became operational in January 2009. The system allows for the creation of analytical reports detailing manpower statistics through the Enterprise Portal. It also enables key business users to slice and dice the data and to perform ad-hoc analysis and reporting via an on-line interface, hence improving productivity and efficiency. Users can also access this function via the internet, thereby granting them 24-hr global access. Automated Monitoring The ISD Data Centre operates 76 units of UNIX servers, 280 Intel servers and 175 networking equipment. During the year, ISD implemented an Enterprise Management System to proactively monitor all critical systems, hardware and services. This has led to improved management of the inventory of hardware and software, and automation of the performance reporting for critical servers and the patch management of the Microsoft Operating Systems. Common shared systems and infrastructure across SP drive greater synergies. SP Annual Report 08 55 OPERATIONAL SUPPORT ENTERPRISE RISK MANAGEMENT Managing Risk Proactively Staff employ a systematic and holistic approach to identify, assess, mitigate, report and monitor risks. SP is committed in its practice of Enterprise Risk Management and recognises risk management as a fundamental tool of effective corporate governance and operational efficiency. SP adopts a proactive and structured approach to risk management as an integral part of day-to-day activities at all levels within the organisation. Institutionalised and comprehensive enterprise-wide risk management policies and procedures within SP ensure that practices enhance stakeholders’ value. A systematic and holistic approach is implemented to identify, assess, mitigate, report and monitor the different types of risks, which include operational and IT risk, regulatory risk, financial risk, legal risk as well as strategic and reputational risk. The Group’s guiding principle is that all employees are responsible for risk management in their respective areas of work. The roles and responsibilities of risk escalation and communication are clearly defined. The risk management practice in SP is an evolving and continuous process. For the year under review, SP