Media Release SP Group launches SG60 Journeys from the Heart and 30th anniversary outreach at inaugural Community Festival · SP volunteers host 600 seniors, youths, children on electric bus excursions · SP to match staff donations by three-fold and sustains 10,000 Power Packs distribution · SP’s total donation to be further matched by SG Gives grant for SG60 SINGAPORE, 4 JUNE 2025 — SP Group (SP) today held its inaugural Community Festival, rallying its 3,800 employees in new community service initiatives, as the national grid and energy solutions operator marks SG60 and the 30th anniversary of SP’s corporatisation (SP30). At the event, SP launched SG60 Journeys from the Heart excursions aboard an electric bus for 600 beneficiaries, increased its matching of staff donations to its SP Heartware Fund, and flagged off its signature volunteer initiative, SP Power Packs, where staff will deliver 10,000 care packs to lower-income households. Group CEO of SP Group Mr Stanley Huang, said, “SP Group’s services impact every household and business. As we celebrate our progress as a company and as a nation, we are also focused on uplifting individuals and families in need, from different age segments in the community. Our employees have been a strong driving force of our corporate growth and social service outreach. Through these initiatives, we aim to strengthen our culture of giving and our efforts in sustainable programmes.” Bringing joyful and sustainable experiences on electric bus excursions SG60 Journeys from the Heart are excursions to Singapore landmarks, with customised itineraries for 600 seniors, youths and children and their families. Aligned with SP’s focus on sustainability, they will travel on an electric bus to places of interest such as the iconic Singapore Flyer, Merlion Park and Sentosa island. They will be hosted by staff volunteers, known as SP Heart Workers, in interactive experiences to suit the interests of each age group. These excursions will run from the June school holidays to the National Day month of August. Ms Jocelyn Toh, Head of Senior Service at Allkin Singapore, which saw 40 of its elderly beneficiaries join the launch excursion, added: “Excursions like these allow the individuals and families we serve, many whom are from lower-income backgrounds, to explore Singapore with renewed wonder, meet new friends, and create shared memories they might not otherwise get the chance to experience. It’s a unique way to celebrate SG60 and SP’s anniversary, and a welcome extension of the SP Heart Workers’ activities with us.” Nuhsyafiq Bin Razak Effendi, Senior Engineer of Electricity Operations, who has been part of the team organising SP’s volunteer activities, shared, “Volunteerism is very much part of our company’s DNA. More colleagues are coming forward to give their time and energy in carrying out our diverse range of activities, which also helps in team bonding. Having participated in several excursions with seniors and kids, I’ve seen how simple gestures can make a big difference and create a lasting impact.” Enhanced donation-matching through SP Heartware Fund and SGSHARE To commemorate SP30, the company also announced an enhanced donation-matching initiative through its SP Heartware Fund, in support of programmes funded by Community Chest. From now until 31 December 2025, staff donations will be matched threefold by SP, up to a total of S$1 million. This initiative aims to encourage employees to contribute to community causes, amplifying the impact of their generosity and fostering a culture of giving within the organisation. This year, as part of the SG60 campaign SGSHARE, all donations to the SP Heartware Fund will also be matched dollar-for-dollar under the SG Gives matching grant. This means that for every dollar that an SP staff donates, eight dollars will go towards helping service users of social and community programmes in Singapore. Established in 2005, the SP Heartware Fund has since raised over S$30 million to date, supporting critical social service programmes, enabling seniors to age with dignity and empowering children and youth to realise their potential by enhancing their social mobility. SP underwrites all fund-raising and operational costs of the Fund and programmes, so that all donations will go fully to the social service agencies the Fund supports. Celebrating corporate volunteerism and community spirit The festival at SP’s head office also saw the flag-off of SP Power Packs – the company’s largest annual volunteer initiative – where employees will deliver care packs worth S$300,000 of essential items to 10,000 lower-income households throughout the year. At the festival, SP staff also spoke about their volunteer experiences to inspire more colleagues to participate in SP’s outreach activities. SP staff enjoyed a carnival-like atmosphere, learning about SP’s community efforts at activity booths of social service partners Allkin Singapore, Care Corner Singapore, Dyslexia Association of Singapore, KidSTART Singapore, St. Andrew’s Autism Centre, TOUCH Community Services, and Youth Guidance Outreach Services. SP is honoured to be recognised for its commitment to sustained giving over the years. The company received the Pinnacle Award, the highest accolade at the Community Chest Awards, for two consecutive years in 2023 and 2024. Additionally, SP has received Community Chest’s Charity Platinum Award, Volunteer Partner Award and the Enabler Award, and was conferred as a Champion of Good by the National Volunteer & Philanthropy Centre. - Ends - Annex A – Quotes from SP Group’s social service partners Community Chest “For two decades, SP Group has been an exemplary partner of Community Chest. They have been uplifting the lives of seniors in need, as well as children and youth from lower income families through their Heartware Fund. On top of matching employee donations to the Heartware fund threefold, SP Group is also encouraging its employees to participate in regular giving through SGSHARE. Their commitment to sustainable philanthropy brings predictability to longer term program funding and measurables outcomes with far-reaching impact on individuals and families.” Mr Jack Lim, Managing Director, Community Chest Care Corner Singapore "We are deeply grateful for SP Group’s steadfast support and meaningful contributions to our beneficiaries, especially the children from lower-income families being cared for in our Student Care Centres. Over the years, SP has exemplified what it means to go beyond corporate giving, consistently demonstrating a strong commitment to social responsibility. We are also excited by their volunteering plans with us — a meaningful step that will further deepen their impact on the communities we serve. As we celebrate the SP Community Festival in conjunction with SG60 and SP’s 30th anniversary, we warmly congratulate SP on this significant milestone. Thirty years of dedication and innovation in Singapore’s energy sector is a remarkable achievement. We are honoured to journey alongside SP and look forward to many more years of purposeful collaboration in building stronger, more resilient communities.” Mr Christian Chao, CEO, Care Corner Singapore Dyslexia Association of Singapore (DAS) “At DAS, we are committed to building an inclusive society where every learner can thrive, regardless of their learning differences or financial circumstances. Embracing our ‘Go Beyond’ spirit, we’re broadening support for children navigating learning challenges. We are extremely grateful to SP Group for their unwavering support in advancing our mission.” Mr Lee Siang, CEO, DAS KidSTART Singapore “SP Group has been a treasured partner of KidSTART since 2021, when SP Group launched its SP Kids at Heart programme to support lower-income families in their learning journey. To date, with SP Group support, we have launched Green Adventures to share principals of sustainability and the environment, and PowerUP Playtime to highlight the importance of meaningful and interactive play between parent and child in their early childhood learning and development. A total of over 4,100 families will benefit from the programmes by March 2026. This is made possible through the heart and hard work of SP Heart Workers and SP Group's generous donations which we celebrate at the SP Community Festival.” Mr Joel Tan, CEO, KidSTART Singapore Ltd St. Andrew’s Autism Centre (SAAC) ”Our collaboration with SP Group has been invaluable in our journey to serve persons with autism. SP Group's contribution has helped empower SAAC significantly to provide more opportunities for persons with autism, by kickstarting the Dignity of Work programme, helping us revamp our kitchens for our students and clients, and providing financial assistance to families of our Home residents. We are also deeply grateful for the SP Power Packs, which have brought meaningful support to our beneficiaries. We look forward to continuing to deepen our partnership with SP Group, working together to bless families affected by autism with gifts of time and treasure." Mr Bernard Chew, CEO, SAAC TOUCH Community Services “SP Group has been a valued partner of TOUCH for many years, rallying their staff to volunteer and bring cheer to our seniors and funding critical programmes in support of children from lower-income families to give them a good head start in life. We are heartened by our continued partnership with SP Group to uplift the community and look forward to inspiring hope and impacting more lives together.” Mr James Tan, CEO, TOUCH Community Services Youth Guidance Outreach Services “YGOS is very honoured to be part of the SG60 and SP30 celebrations. We are grateful for SP Group’s continuous collaboration and support for children and youths. Through the provision of practical help such as Power Packs, as well as co-creating activities for the youths, SP has displayed flexibility and willingness to accommodate the needs of the youth, and we value this ongoing partnership.” Mr Wilson Tan, Executive Director, Youth Guidance Outreach Services  

B10 THURSDAY, MARCH 20, 2014 THURSDAY, MARCH 20, 2014 B11 A SPECIAL FEATURE BROUGHT TO YOU BY Power sector draws young talents Singapore Power awards scholarships to ITE and polytechnic students eyeing fulfilling careers in the dynamic energy sector KIMBERLEY KOH STUDENTS pursuing electrical or mechanical engineering courses at the Institute of Technical Education (ITE) and polytechnics can now apply for scholarships from Singapore Power if they are keen on careers in the energy sector. It is the first time the leading energy utility company is offering scholarships at the ITE and polytechnic levels, which have been named after the late unionist Mr Nithiah Nandan (see sidebar). The inaugural batch of 21 recipients of the Nithiah Nandan ITE and Polytechnic Scholarships received their Singapore Power study awards from Mr Lim Swee Say (right), Secretary-General of the National Trades Union Congress, during a presentation ceremony on Tuesday afternoon at the Devan Nair Institute of Employment and Employability (e2i). Thirteen recipients are from Singapore Polytechnic and Ngee Ann Polytechnic while the rest are students of ITE College East and ITE College West. The latest scholarships complement those that Singapore Power provides to current undergraduates and students who are about to enrol in universities. These are part of Singapore Power’s efforts to groom talent and develop their expertise in various areas to help the company sustain the reliability of Singapore’s world-class power system. After completing their studies, the scholarship recipients will begin their careers with Singapore Power, where they can look forward to upgrading their skills and knowledge under the company’s range of professional and personal development schemes. Singapore Power also offers the Engineering Development for Graduates (EDGE) programme, which aims to build a pipeline of engineering talents with Professional Engineer Certification. EDGE hires also can look forward to structured training programmes, job attachments, comprehensive training and rotational stints in key operational areas. Details are at www.singaporepower.com.sg Energy is critical to Singapore’s growth and all essential activities of daily life. It takes a dedicated, highly skilled workforce to power the nation. The work we do is central to ensuring reliable, cost-efficient power supply. We work closely with academic institutions, the Union of Power and Gas Employees and the labour movement to nurture diversity of talent and develop expertise for the power sector. The Singapore Power scholarships will be an important component to the suite of learning and development programmes available to SP employees, enabling them to advance and excel throughout their career with us. — MR WONG KIM YIN, GROUP CHIEF EXECUTIVE OFFICER, SINGAPORE POWER The power sector is a good model of how companies, learning institutions and the labour movement effectively build a pipeline of workers who are knowledgeable and committed to their jobs. Workers have a structured career path that rewards good performance and continuous upgrading efforts. I am pleased that the legacy of a highly respected unionist, the late Nithiah Nandan, is honoured through the Singapore Power scholarships. I hope these initiatives will inspire more Singaporeans to pursue a meaningful career in the power sector. — MR LIM SWEE SAY, SECRETARY-GENERAL, NATIONAL TRADES UNION CONGRESS NTUC Secretary-General Mr Lim Swee Say (sixth from left) with Mrs Nithiah Nandan, Singapore Power Group CEO Mr Wong Kim Yin, UPAGE leaders and recipients of the inaugural Nithiah Nandan ITE and Polytechnic scholarships. PHOTO: SINGAPORE POWER WORKERS’ CHAMPION REMEMBERED Singapore Power’s new ITE and Polytechnic scholarships are named after Mr Nithiah Nandan (below), the late union leader who fought for the welfare of workers in the power sector. PHOTO: SPH He was executive secretary of the Union of Power and Gas Employees (UPAGE) and a former Nominated Member of Parliament. He died of cancer in 2007. He believed in hard work and skills upgrading as key to improving the lives of rank-and-file workers. He convinced their employer to sponsor their studies – including those in their 50s – for a National Technical Certificate-3 metal machining certificate. To show his support and solidarity, Mr Nithiah and the UPAGE executive council members pledged not to accept any promotion for six years until every low-wage worker in the company received upgrading and was promoted. His push for continuous learning eventually paid off as the prospects of the low-income employees improved. Paying tribute to Mr Nithiah, Singapore Power described him as a man of integrity, commitment and strong conviction, which are values the company shares, and named the scholarships to honour his memory. WORKING in the dark, driving through peak-hour jams and dealing with people who may take out their frustrations on him — it is all in a day’s work for SP PowerGrid service technician Muhd Shaiffudin Wakiman (left) . Working 24/7 over three rotating shifts, the 35-year-old and his colleagues are the first to arrive at the site of any network incident like power disruptions. Armed with safety gear, tools, voltmeters and other electrical equipment, they work to ensure that the electrical supply is restored as quickly and efficiently as possible. Sometimes, they are literally groping in the dark. Serving with pride Professionalism and dedication are the key qualities of Singapore Power employees, who toil endlessly to ensure the country enjoys an uninterrupted supply of electricity, reports NICHOLAS YONG FOURTEEN years ago, Mr Kane Neo (left) joined Singapore Power, drawn by childhood memories of his home and his uncle. “I remember being fascinated by how electricity is transported to houses, when I looked up at the low voltage overhead cables outside my old kampung house. My uncle was also working in the power industry, and through him, I could see the respect and pride associated with the profession,” he says. He was 28 when he began his Singapore Power career as a member of the network management team responsible for ensuring continuous power supply to households in western Singapore. Mr Neo rose to oversee a crew of more than 20 engineers and technicians, First on the scene Rain or shine, technician Muhd Shaiffudin Wakiman is always hard at work PHOTOS: SINGAPORE POWER Sustaining reliability A diverse and holistic career is powering engineer Kane Neo’s efforts to shape Singapore’s energy landscape Mr Shaiffudin says: “It can get very dark in customers’ houses, even with torchlights. We need to walk carefully to avoid tripping, and also to handle the electrical equipment with extra care.” Starting as an assistant when he first joined the company in 2006, he has advanced in his career thanks to Singapore Power’s Progressive Wage Model that provides a structured pathway for employees to upgrade their skills, move up the career ladder and achieve higher income. Mr Shaiffudin’s “office” is a service van equipped with materials such as cables, fuses and a mobile generator. As the designated driver, he needs to be quick-thinking while on the road. “When we respond to disruptions during peak hours, the traffic conditions can be bad. We try to avoid the busy roads, or look for alternative routes to CUSTOMERS make some 75,000 calls a month to the Integrated Call Centre at Singapore Power, keeping 117 staff based there busy attending to requests for information and complaints. Some of these employees are mentored by the company’s awardwinning service ambassador, Ms Ires Wang (left), a veteran with 14 years of experience. Now a team coach in customer relationship management at SP Services, a subsidiary of Singapore Power, Ms Wang supervises her staff and gives advice on providing service. “Sometimes the issue may be small, but all the customer needs is a listening ear, an outlet for him to give feedback,” she says. The 35-year-old joined Singapore Power after graduating from Ngee AS A senior engineer at SP PowerGrid, a subsidiary of energy utility provider Singapore Power, Mr Jaimes Kolantharaj (left) handles “massive” and “complex” projects, with each typically lasting one to two years. The 32-year-old is currently working on the installation of circuits at a power transmission substation in Upper Jurong. The cables are for an upcoming power plant that supports the Tuaspring seawater desalination plant, the largest in Singapore. Attached to the Network Development division, Mr Jaimes ensures that each project meets the required specifications, is within budget and is delivered on time. He oversees the entire process from installation to testing to going live. whose tasks were to maintain and test cables and equipment. More than a decade later, he became the Head of Section in charge of the team looking after northern Singapore. The 42-year-old holds a bachelor’s degree with second class honours in electrical and electronics engineering from the University of Aberdeen in Britain. He is also a registered Professional Engineer under the Professional Engineers Board Singapore. Overseas stint In his eighth year with the company, Mr Neo was seconded for two years to Jemena, Singapore Power’s subsidiary in Australia, which builds, owns and maintains electricity, gas and water assets. get to our destination. It helps to know the roads in Singapore well,” he says. When it rains, their skills are tested and true teamwork surfaces. “Rain will affect our visibility, and we also have to make sure the electrical equipment doesn’t get wet. So while we wear our raincoats, sometimes one of us will hold the umbrella to shelter the other guy who does the work. And when there is lightning or heavy rain, we need to stop work as a safety precaution,” he says. Mr Shaiffudin also repairs and maintains network equipment, and assists engineers on site at substations and transformers during wider outages. He also communicates with the public during disruptions to allay their concerns. It is perhaps this last role — of reassuring frustrated customers — that is perhaps the most challenging part of his job. Mr Shaiffudin cites an incident when he was called to attend to a house without power, where the lights had shut down due to a network fault. He Customers matter most Passion, patience and perseverance make up call centre team coach Ires Wang’s award- winning ways Ann Polytechnic with an engineering diploma. Passion for her job is key to her career longevity. She says: “I have always wanted a career in customer service. When I am able to meet my customers’ needs, or win over an angry customer, it makes my day. The best and most satisfying part of my job is to receive customers’ appreciation through e-mail or letters.” Service DNA She recalls attending to a customer some years ago on the eve of Chinese New Year. The customer had closed his utilities account and asked for his deposit to be refunded urgently as he was leaving Singapore. “I had to handle the case till past office hours,” she says. “I also came back to the office on the second day Powering the future Engineer Jaimes Kolantharaj works behind the scenes to enhance the power infrastructure It is a role that requires Mr Jaimes to deal with various stakeholders. Externally, he meets with representatives from government agencies such as the Land Transport Authority to discuss land use issues, or National Parks Board to ensure the minimal impact of construction on greenery. Internally, he and his colleagues from the Planning and Strategy Division chart the roadmap for Singapore’s future electricity infrastructure. International experience Armed with professional experience from working in India, Qatar and Dubai, he joined the company in 2011, drawn by its reputation as one with the world’s shortest and least power disruptions. “Even in developed nations and advanced economies, power outages can be common. In Singapore, the power network is one of the most reliable and efficient,” says Mr Jaimes, who holds a Master in Power Engineering from the He was responsible for electrical networks in north and south-east Melbourne and led a team in charge of substations, underground protection facilities and high voltage test laboratories. He says: “I met stakeholders like customers and unions to communicate the project and understand their interests. I worked with people of diverse cultures and backgrounds and expanded my professional network.” When he came back to Singapore, he returned to network management and assumed a leadership position. He says: “I oversaw projects to enhance the reliability of our system, and provide a higher level of service delivery to our customers and stakeholders, such as cable diversion works for the construction of the Downtown Line rail network. “A lot of the work we do goes on behind the scenes, like monitoring our network, and testing and maintaining our equipment. What the public see is road digging works we carry out for cable says: “To repair it, we needed to shut down the neighbour’s supply, due to the network configuration. The neighbour was naturally unhappy and we had to explain the situation to him.” Fewest outages Singapore consumers enjoy the world’s fewest and shortest power failures. When an interruption does occur, it could be due to numerous reasons such as customers’ faulty appliances and electric switchboards. But this often cuts no ice with customers concerned over food in their refrigerators going bad, and people frustrated with having to take the stairs when the lift is out of order. Progress on getting the job done can be hampered by countless enquiries. Mr Shaiffudin says: “Customers are always asking what’s going on. They want immediate updates on what caused the fault and when it will be fixed. We help them understand that our priority is to restore power safely, as of Chinese New Year to follow up. In the end we managed to deliver the cheque to him on time.” Ms Wang’s commitment and professionalism netted her the Gold Award in the 2006 Excellence Service Awards, which are annual accolades given out to high performers in various industries. Employees like Ms Wang have contributed to the power company’s strong service DNA. In 2012, SP Services was honoured as a finalist at the Singapore Service Excellence Medallion Awards for its customerfocused culture. The company’s one-stop service for all utilities led customers to rate it ahead of utility providers in Hong Kong, Japan and Australia. Frontline customer service is challenging, and having to do this without eye contact ups the ante. Says Ms Wang: “Dealing with customers over the phone is both a science and an art. The words that we say, our tone — all these have to be done the right way to avoid Nanyang Technological University. Mr Jaimes is also attracted by Singapore Power’s stellar track record in professional staff development. He says: “The company puts a lot of emphasis on training the employee; they feel that you should be trained well before you are immersed into the job. We also have all the modern facilities, and as a power engineer, it’s a dream to work with such sophisticated and high-end equipment.” In just two years, he has participated in major efforts to upgrade and expand the power network to meet growing demand and ensure continued and sustained reliability. Recently, Mr Jaimes oversaw the installation of high voltage cables from Jurong Pier to Upper Jurong, and from Upper Jurong to Tuas. These projects will help to strengthen the power network in western Singapore, he says. “The length of the Upper Jurong-Tuas circuit is about 9.5km long. Part of it was laid via the Tuas sea tunnel,” he says. “Typical cables are jointed, but the one installed in the undersea tunnel replacement.” So education is key to fostering public understanding, he adds. “We have to explain to customers that the projects we undertake now and our investments in infrastructure are necessary for the continued sustained reliability of our power network into the future.” Mr Neo’s diverse work experiences and unrelenting passion for the industry make him an authority on power engineering. He is now a deputy director at the SP Engineering Board, helping to establish a framework to shape and guide the company with enhanced operational policies and identify best practices, areas of improvement and new technologies. He also meets representatives from local and overseas companies to establish partnerships.He has been travelling to Europe and Asia to see what can be adapted for Singapore. He says: “A career at Singapore Power is not just a job. Here you will take in first hand the complexities of running the nation’s power network.” soon as possible. “When faced with an angry customer, the most important thing is to show empathy, and to assure customers that we are there to help. Whatever the situation, we take it in our stride, think on our feet and focus on service restoration.” As a professional who takes pride in his work, he gets a sense of satisfaction when customers are assured at seeing them arrive on site, knowing that help has arrived. More so, when supply has been restored. His wife is supportive of his work but their two children aged five years and three months are too young to understand the demands of his job and shift work. Mr Shaiffudin says with a chuckle: “My son always asks why I have to work when other people are not working. “This is a challenge I’ve taken up — to be part of a team that ensures the lights stay on, and provides power whenever and wherever it is needed.” miscommunication.” It helps to have a positive mindset and not to take things personally, she adds. “It is natural for customers to get upset occasionally when things do not go their way. What matters most is for us to promptly resolve the issue. I tell my staff, the customer is not angry with you, but the situation,” she says. She notes that callers become most annoyed when they are passed from department to department, with their issue still unresolved, or without viable alternative solutions. She says: “Imagine you are the caller with an issue to resolve. What kind of service would you expect? And how would you like the service staff to assist? Once we have the answers, we will then work towards meeting those expectations.” Her supervisory role means she still handles challenging customers daily. “As service staff, the most important thing is to build customers’ trust in us, so they will be assured that their interests are well taken care of.” wasn’t, and this was due to the space constraints within the tunnel. So the cable, which was 2.3km long, had to be transported and laid in one single piece. It took us a lot of planning and effort to get it done. “Installation of transmission cables is always a challenge because Singapore is densely built above and underground, and finding space for laying cables can be tricky. “It always feels like I am doing something important to enhance the Singapore network, or to help new industrial development. Whenever I come out of the office, I can see one of the transformers that I helped to build, and I feel very proud.” Besides working on high-profile projects, Mr Jaimes found time to attend training programmes on operations and maintenance, project management and communication. “Doing something you enjoy is important, but working for a company that nurtures you is equally important. I am glad I can have the best of both worlds.”

B6 HOME FRIDAY, NOVEMBER 22, 2013 FRIDAY, NOVEMBER 22, 2013 HOME B7 Like arteries and veins that keep the body alive with a constant flow of blood, close to 26,000km of cables, more than 3,240km of gas pipelines and a 3,000-strong team of people work around the clock to keep Singapore’s lights on and air cool. Arti Mulchand speaks to the unsung heroes. POWER TRIP Lighting up Marina Bay Getting power to the people IN 2004, when Mr Peter Leong oversaw the engineering division at Premas International, which provides property management services, Singapore was hit by one of its worst blackouts in history. Piped gas supply from Indonesia to Singapore’s power stations was disrupted by a technical fault and most turbines were unable to switch to the backup source of fuel. It caused a two-hour outage affecting more than 300,000 homes. In one home in Jurong, a man had a heart attack and needed to get to a hospital. The lifts did not work. At the time, Premas managed the Jurong Town Council, to which Mr Leong provided engineering support. “I had to send our contractor up to carry him down. I saw how the residents were affected. Failure can be very serious and I know how important continuity is. I remember that even now,” recalled the 57-year-old, who joined Singapore Power (SP) PowerGrid as general manager about five years ago. That image remains with him, and has served as a constant reminder in his current role as managing director of SP PowerGrid – he has to ensure “the lights are always on” for the company’s 1.4 million customers. “Singapore is like a copper mine. There is 26,000km of copper underground because everything needs power. Just like blood needs to flow to every part of the body, electricity needs to flow to every corner of Singapore. And like the human heart, we cannot afford to fail, so we do everything we can and put every effort into ensuring nothing goes wrong.” The three main areas Singapore Power covers are: planning and strategy, that is, planning ahead for energy needs; network development, that is, building the transmission and distribution network; and network management, that is, operating and maintaining network equipment. “The team works 24/7 to ensure the health of the system. We A SERIES BROUGHT TO YOU BY Building a more resilient grid THE power grid of the future could include a large number of distributed renewable generation sources such as solar photovoltaics, energy storage facilities and energy management systems. It is also expected to be flexible and scalable, such that fluctuations in energy demand or supply will not affect the grid’s stability and reliability. A team from the National University of Singapore, headed by Associate Professor Dipti Srinivasan, is working with SP PowerGrid to look into “dynamic optimisation and energy management for smart grids”. It hopes to develop a set of computational tools that will, among other things, automatically diagnose faults so outages can be handled quickly. respond immediately to any system distress,” Mr Leong said. Temperatures of transformers are taken, insulating oil is checked, and other parameters are continuously measured – whether online or off – to ensure that Mr Peter Leong, 57, managing director of SP PowerGrid, says that energy demand in Singapore has increased dramatically between the pre-war period and now. PHOTO: LIM YAOHUI FOR THE STRAITS TIMES the power paramedics can be sent in for swift and often pre-emptive responses. Exercises are conducted for everything from network management to billing, so that if anything goes wrong, everyone knows what to do. In the last 20 years, Singapore has achieved one of the most reliable grids in the world – the average amount of outage time has gone from 27.44 minutes per person a year two decades ago, to less than half a minute now. But just like Singapore has evolved, so must the power superhighways. Mr Leong says that energy demand has increased dramatically between the pre-war period and now. Power is pumped through some 26,000km of cables to more than 10,000 transmission and distribution substations that convert electricity into the necessary voltages for various uses. “As power demand grows, it becomes more efficient to push through power with higher-voltage cables. It is not unlike Singapore’s highways. Where two lanes used to do the job, we now have the Marina Coastal Expressway, which is 10 lanes wide. As energy intensity grows, we need a bigger highway,” said Mr Leong. The North-South and East-West Electricity Cable Tunnel Project is part of that expansion. Its two 60m-deep tunnels will span 35km way below the MRT and even the sewerage system and, when completed in 2018, will reinforce Singapore’s power grid as one of the most reliable in the world, said Mr Leong. The company has been looking into how new technologies and energy sources, such as solar photovoltaic power, could impact the grid. As Mr Leong listed some of the major infrastructural projects in store for the nation – Changi Airport’s Terminal 5, Project Jewel at Changi Airport, the redevelopment of the southern waterfront and new container ports at Tuas – his eyes lighted up. “We have to plan now for tomorrow,” he said with a smile. Mr Leong, who studied electrical engineering at RMIT University in Australia and did his master’s at the National University of Singapore, began his career at the then-Singapore Institute of Standards and Industrial Research, which eventually merged with the National Productivity Board to become Spring Singapore. There, he spent 18 years with safety on his mind, operating the nation’s test lab for equipment and accessories that connected to the electricity network, then regulated by PUB, the national water agency. He did product testing and also participated in investigations into electrical deaths. When he moved on to Premas, he oversaw the maintenance and operation of equipment such as chillers, lifts and switchboards in commercial buildings and techno parks, and several town councils. But it is at Singapore Power that he has found a “better sense of purpose”, he said. “I love being able to look at how to do things differently, and I can never say that my job is done. This is a journey without a finish line.” Mr Thiam Chiong Seng helped build the Marina South substation, which powers Marina Bay Sands and Gardens by the Bay. ST PHOTO: NEO XIAOBIN Senior engineer Chu Xiao En (left) at SP PowerGrid’s Emergency Operations Centre. PHOTO: LIM YAOHUI FOR THE STRAITS TIMES MORE THAN DRAWING LINES ASK senior engineer Chu Xiao En what the biggest misconception about her job is and she will tell you it is this: “People think that planners only draw lines.” The 27-year-old works in Singapore Power’s planning and strategy division, which plans for Singapore’s electrical infrastructural needs five, 10 and even 20 years down the road. They include the need for new substations, and the renewal or decommissioning of old ones. “While the end result of a plan and review might be a line connecting two substations, a lot of analysis goes into exploring every possible option and anticipating all kinds of contingencies,” she said. The 15-strong team she belongs to gathers input from customers along Singapore Power’s transmission and distribution grid, and looks at the growth and development plans for the country, said Ms Chu, who oversees network planning for Singapore’s western region. She covers areas WHEN Mr Thiam Chiong Seng drives along the East Coast Parkway and past the Marina Bay area, it is rarely without a smile on his face. The 47-year-old engineer is the director of network development at Singapore Power (SP), where he has worked for 16 years doing high-voltage equipment installations, including at the Marina South substation. That means keeping the lights on in iconic buildings that include Marina Bay Sands, the Marina Bay Financial Centre and Gardens by the Bay. “With Marina Bay, I know that we are literally powering it. You can see and feel the impact,” he said. “That’s why it’s very exciting being in the energy business. You’re not dealing with tiny electronics. What we build is so huge so you feel a real sense of satisfaction when you see a job completed.” SP’s network development engineers develop and build the infrastructure that ensures continuous and reliable power supply to households, as well as industrial and commercial buildings. This includes forging the fit between network demand and supply, conducting simulations and doing tests and checks on equipment before it is used. “We don’t want a situation in such as Choa Chu Kang, Jurong, Woodlands and Ayer Rajah. Part of the job includes carrying out simulation studies, planning cable routes and substation sites, and figuring out how to get the best possible network at the lowest cost. Each year, her department submits an updated 10-year plan to the Energy Market Authority (EMA), which takes into account developments and changes. “The EMA works top down and we work bottom up to forecast the national energy demand,” she explained, adding that based on the latest estimates, energy demand in Singapore could grow between 2.2 per cent and 3.7 per cent each year between this year and 2023. It is that kind of work that appeals to the self-confessed applied mathematics and physics fan. “I have always been a rational and logical person so that’s what attracted me to engineering. I like that one plus one will always be which we turn the equipment on and you suddenly see ‘fireworks’. We have our biggest fireworks display on National Day and we’d like to keep it that way,” Mr Thiam said with a laugh. What makes the Marina South substation unique is that it is Singapore’s first substation that can receive bulk energy transmissions at 230 kilovolts (kV) from the power generation companies and then convert it to 22kV, which is the voltage at which some consumers can use it. Usually, power has to be converted to 66kV before being reconverted to 22kV or lower voltages, but new equipment allows it to bypass that intermediate stage. That means saving on space and equipment cost. The current capacity of the substation is 300 megavolt amperes (MVA) – meaning it can power up an area up to twice the size of Ang Mo Kio Town. “But we have also future-proofed it so it can deal with the area’s expansion,” he explained, adding that the substation is capable of servicing the area’s needs for at least the next decade. The substation also has three sets of 230kV cables to create a situation of “double redundancy”, so even if one set is knocked out, the other two function as two,” said the Singapore Power scholar who did her degree in electrical engineering at Imperial College and her master’s at Stanford University. She joined Singapore Power in 2009. The job has multiple challenges. For instance, her department is looking into the renewal of a lot of electrical infrastructure that was created in the 1980s, but there are limitations on what can be done. “Most of the renewals are done in mature estates, so you’re working with a live network. You need to have a step-by-step contingency plan for anything that might go wrong,” she explained. The four years that Ms Chu has been at Singapore Power have included a three-month stint at the company’s Melbourne-based subsidiary Jemena, and eight months in Network Management, a department tasked with ensuring that power supply to customers does not get disrupted. She worked on, for instance, the diversion of power cables that Planning for the next generation back-up, keeping the lights on. Mr Thiam got involved in the Marina South project in 2000, when his team helped outline the technical requirements for transmitting power through South-east Asia’s first Common Services Tunnel, which was being built by the Urban Redevelopment Authority at the time. Those tunnels, which sit between 2.5m and 20m underground, deliver everything from electricity to chilled water and telecommunication cables. “The Government realised the CBD (Central Business District) had to be expanded, and we were able to support them in the development,” said Mr Thiam, who oversees a department of 18, including six engineers. Mr Thiam, who studied electrical and electronic engineering at Nanyang Technological University, started out in an industrial air-conditioning company before moving to an SP subcontractor doing maintenance work on 230kV transformers. He was so impressed with Singapore Power that he ended up applying for a job. He has not looked back since. What he is especially proud of is that other countries look to Singapore for the types and technical specifications of equipment used and even quality control processes. But communicating this information can be harder than one can imagine. “In China, it would be rude to speak English, but try finding the Chinese word for cross-linked polyethylene (XLPE) or polypropylene laminated paper (PPLP). Chinese is not our native language for technical terms,” he exclaimed with a laugh, referring to the types of insulation materials used in cables. His overseas exposure has also been eye-opening, not least because of the much higher tolerance level other countries have for disruptive electrical and road works. “In China and India, they understand that electrical cabling is for the good of the country. Here? We have to work at night or traffic would be obstructed, and we can work only a limited number of hours at night because residents complain about the noise,” he said, shaking his head. During the Marina South substation project, for instance, one 900m stretch of road between Anson Road and Cecil Street took almost two years to complete because work could be done only between 8pm and 4am and the noisier work had to be finished by 10pm. “In other countries, they would just block off the road and finish it up in just months.” had been laid under Upper Bukit Timah Road to make way for the construction of Downtown Line 2, which is due to be completed in 2016. “I never realised how much went into the planning of an MRT line. There is a lot of preparatory work that has to be done alongside other utility providers. I am now a lot more tolerant of road works,” said Ms Chu, whose husband is also an electrical engineer in the power sector. The time spent in Network Management made her an unlikely sympathiser when a fire broke out at SingTel’s Bukit Panjang facility in October, disrupting a range of services across the island, including her pay TV services at home. She was part of a team that, following a fault that tripped a circuit in Woodlands in 2009, had to walk along roads that had cables under them, armed with cable fault detectors and special headphones to identity the problem segment. It was about a day and a half before the segment was isolated, and only then could contractors proceed to dig up the road, find the fault and fix it. She said: “While the public was asking why there were no back-ups during the SingTel incident, I felt appreciative of what they were trying to do to restore the network. When these things happen, you are really trying your best to get things back up. I understand how challenging that can be.” And while being a planner also means gratification is much delayed, since most of the projects she has had a hand in planning have yet to become a reality, it makes the job no less fulfilling. “We get to be involved first-hand in nation-building. And I appreciate that the good performance of our network today is the result of the work of some of my mentors and the planners that have come before me. “Now, we’re planning for the next generation.” ENSURING SMOOTH OPERATIONS All fired up about keeping businesses cool SINGAPORE District Cooling’s (SDC) senior engineering officer for safety Ariff Shah Mohd proudly declares that in his seven years with the plant, there has not been a single serious accident. The plant, which spans 19,000 sq m, supplies the chilled water that keeps many buildings in the Marina Bay financial district cool. Among his responsibilities: to ensure compliance with safety measures and equipment, and make sure that all the permits for machinery are in order. “I have to cultivate a culture of safety among the staff as well as our contractors, and ensure that the plant has reliability and efficiency and operates safely. It can be tricky, and you have to be alert,” said the 39-year-old, who holds a position more often held by someone who is trained in engineering. Mr Ariff, an Institute of Technical Education graduate who studied mechanical and electrical drafting and design, toyed with the idea of becoming a policeman before ending up in IT support. Eventually, he learnt the ropes as an operations technician at a petrochemical plant on Jurong Island. That led him to a similar position at the SDC plant, which began operations in 2006. SDC is a joint venture between Singapore Power and Dalkia. After four years, he was given the opportunity to pursue a oneyear specialist diploma in workplace safety and health at Singapore Polytechnic in 2009, after which he was promoted to engineering officer for safety and projects. This year, he became senior engineering officer for safety. Today, he oversees all of the plant’s safety matters, including safety precautions that are in place, risk assessment, safety compliance and training. He is also the secretary of the plant’s 10-man safety committee, which meets once a month. This father of two is so passionate about safety that, this week, his team held its first SDC Safety Day. Some 70 spouses and children of SDC’s staff had a first-hand look at how the plant works and a lesson on why safety matters. Safety Day will now be an annual affair. Similarly, Mr Wong Toon Soon, the operations manager of Keppel District Heating and Cooling Systems (DHCS), started out in construction, doing electrical installations. Mr Wong, who is now 51 and also a father of two, became an electrical foreman after completing a full-time Industrial Technician Certificate course at Singapore Technical Institute. Mr Wong, who received his diploma in electrical engineering from Singapore Polytechnic in Neither Keppel DHCS operations manager Wong Toon Soon (above) nor Singapore District Cooling senior engineering officer for safety Ariff Shah Mohd (right) started their careers in the district cooling field, but both men now power vital aspects of their plants which provide cooling services in various parts of Singapore. ST PHOTOS: CAROLINE CHIA, NEO XIAOBIN 1991, was also keenly interested in energy efficiency, which was a buzzword in the late 1990s. He was introduced to the brand-new sector of district cooling when his company became involved in the construction of the Keppel DHCS plant in Changi Business Park, Singapore’s first district cooling system, in 1998. When completed, it would provide cooling services to businesses in the area, including commercial, banking, biomedical and wafer fabrication customers. Fascinated, he applied for a position as senior control engineer in 2003. He said: “During the construction phase, I realised they were using the latest energy-efficient technologies and I was excited at the prospect of learning more. This was my opportunity.” Just three years later, he was promoted to operations manager of all three of Keppel’s DHCS facilities. Keppel is the only other provider of district cooling services here, and services 18 customers in Changi Business Park and 18 at Biopolis. It also provides district cooling at Woodlands Wafer Fab Park. Mr Wong, who also has specialist diplomas in energy efficiency management and security networking, ensures that the plants run smoothly, and works closely with Keppel’s customers to help them maximise their efficiency gains. He was involved in setting up a DHCS plant in the Sino-Singapore Tianjin Eco-City in 2010, where he oversaw everything from its construction all the way to the time the chilled water started pumping. It has been up and running since August. At the moment, Mr Wong is planning to refresh the 13-year-old DHCS plant in Changi – Keppel’s oldest DHCS facility – with new and more efficient chiller equipment planned for next year. Keppel, which is looking into new sites for DHCS facilities, most recently secured the contract to provide district cooling to Mediapolis from the second quarter of 2015. Mr Wong is most encouraged by the growing footprint of district cooling, especially since building owners and tenants have much to benefit from this, both in terms of lower investment costs and energy savings. In the longer term, it also means having a smaller carbon footprint. “It is better for business, and better for the planet as well,” he concluded. CHILLING UNDERGROUND The world’s largest district cooling plant ALL the action at what is arguably the world’s largest district cooling plant by capacity is well hidden from public view. The plant is located five floors – about 25m – underground. The only evidence of the plant’s existence is a cleverly concealed cooling tower, which pops up above the ground facing Marina Bay Sands’ hotel building. A curtain of metal plates that allow exhaust heat to escape the tower shimmers in the sunlight, and a strategically placed water feature masks the sound of the water that flows from it. Even access to the plant, which produces 600 tonnes of chilled water per hour, is like a scene out of Alice in Wonderland – there is no signage, only a small door located at the end of the Double Helix Bridge. Stairs and a lift transport the plant’s 52 employees deeper underground. Chilled water is one of several utilities continuously pumped through a network of common services tunnels to 14 customers in the area, including Marina Bay Sands, the Marina Bay Financial Centre and One Raffles Quay. District cooling is an energy-efficient and cost-effective method to provide buildings in the area with an optimal indoor climate. In the case of Singapore District Cooling, chilled water is produced by production plants and distributed by water pipes contained within the common services tunnels. Specially designed units within each building draw on the cooling properties of the water to, for instance, lower the temperature of the air passing through the air-conditioning system. There are three interconnected plants in Marina Bay spanning a total of about 19,000 sq m – the other two plants are at One Raffles Quay and One Marina Boulevard – and there are plans to grow this to five plants, so more than eight million sq m can ultimately be serviced. The success of a cooling plant lies in being able to maintain the temperature of continuous water flow at under 6 deg C. At Singapore District Cooling, that standard is met 99.9999 per cent of the time. Using a district cooling facility – as opposed to having to build and install their own plant rooms and cooling towers – helps make businesses in the area about 30 per cent more energy-efficient. In temperate countries, similar networks can be used to supply heating, as is the case with Keppel’s District Heating and Cooling Systems plant at the Sino-Singapore Tianjin Eco-City in China. Keppel also has three district cooling plants. They are located in Changi Business Park, Biopolis and Woodlands. While it is more common in the United States and the Middle East, district cooling is catching on in Asia, said Singapore District Cooling managing director Jimmy Khoo, adding that the Marina South substation is a “true success story for Singapore”.

Our Core, Our Future ANNUAL REPORT 2005 Singapore Power Annual Report 2005 1 Contents Chairman’s Statement 7 Board of Directors 10 Corporate Governance 14 Senior Management 18 Corporate Highlights 20 Group Financial Highlights 23 Operational Review 25 • Singapore Power At Home 25 – SP PowerGrid 27 – PowerGas 37 – SP Services 45 • Singapore Power Overseas 51 – SP AusNet 53 – Asia 59 Our People, Our Community 61 2 Singapore Power Annual Report 2005 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. Singapore Power Annual Report 2005 3 Our Core, Our Future “ Growth, new challenges and adaptability are symbolised in this ceramic wall mural (facing page). The pillars depict the strength which is gained from unity, while the concentric configurations, made up of separate pieces, represent the role that each person has to play in contributing to the whole. Like the individuals who make up the organisation, each piece is unique. ” By Mural Artist Hasan Zolkifly Rahim 4 Singapore Power Annual Report 2005 Wall mural of stoneware with gold ash glaze at Singapore Power Building Singapore Power Annual Report 2005 5 Building on our strengths, we continued to achieve significant progress on many fronts during FY2005. It was a very successful year — SP AusNet was simultaneously listed in Australia and Singapore; network performance improved, maintaining world-class standards; continued investments were made to enhance and expand our electricity and gas networks; partnerships with customers were deepened; and new service initiatives launched. 6 Singapore Power Annual Report 2005 Chairman’s Statement Our Core, Our Future We celebrated our 10th Anniversary during the year under review. It was a significant milestone for all of us at Singapore Power (SP), marking a decade of changes, challenges, and achievements. In the relatively short span of 10 years, we have seen the liberalisation of the electricity industry in Singapore and the transformation of the market to one that is based on competition. The restructuring of the industry and the new rules of a competitive electricity market have had a profound impact on the nature and structure of our business and organisation. We can be justifiably proud of our achievements and our evolution in the liberalised electricity sector. We have done this by strengthening and deepening our core capabilities and expertise to enhance our standing and performance. Today, we are the sole electricity and gas transmission and distribution company in Singapore. Our Australian subsidiary, SP AusNet, owns the sole electricity transmission network and one of the electricity and gas distribution networks in Victoria. We also provide integrated utilities support services for electricity, gas, water and refuse collection in Singapore. And we have maintained our good credit ratings of “AA” from Standard & Poor’s and “Aa1” from Moody’s. Building on our strengths, we continued to achieve significant progress on many fronts during FY2005. FINANCIAL PERFORMANCE For the financial year ended 31 March 2006, SP Group reported a proforma net profit of $726 million, excluding exceptional and nonrecurring items, up 6% from a year ago. Total revenue rose 17.1% to $4.84 billion. Total assets stood at $18.7 billion. Currently, the Group has close to 3,800 staff. SP AUSNET LISTING A SUCCESS A major corporate highlight was the successful simultaneous listing of SP AusNet on the Australian and Singapore stock exchanges. The Initial Public Offering was greeted by enthusiastic response and support from investors in Australia, Singapore, United States and Europe. BIG GAINS IN ELECTRICITY NETWORK PERFORMANCE In Singapore, our network performance achieved considerable improvements, reflecting our commitment to maintaining a world-class power network. There was a shorter system average interruption time; fewer supply interruptions; and lower interruption frequency as well as interruption duration indices. Singapore Power Annual Report 2005 7 Chairman’s Statement Meanwhile, feedback from our second annual customer survey showed better customer satisfaction than that of the first survey in 2004. CONTINUING INVESTMENTS AND EXPANSION Without letting up, we continued to push ahead with investments in our electricity infrastructure to ensure an efficient and reliable delivery of quality power into the future. We also increased the capacity of our natural gas transmission network and expanded the reach of our natural gas and town gas distribution. Priming ourselves for increasing opportunities beyond Singapore, we launched a new initiative called SP Global Solutions (SPGS). It will leverage upon the Group’s core competencies and intellectual property to provide management consultancy to overseas utilities as a means to enter into new markets and seize new expansion opportunities. The natural gas projects could potentially see up to 15,000 properties having access to natural gas for the first time while the transmission network augmentation projects are intended to support and meet load growth in Victoria’s metropolitan and regional areas. DEEPENING PARTNERSHIP WITH CUSTOMERS We are also deepening our relationship with customers in Singapore, working in close partnership with individual companies as well as industry sectors. A high-level Power Quality Advisory Panel, which includes chief executives from industry as members, was formed to address power quality issues at a macro and strategic level. At the industry level, the Electronics & Semiconductor Power Quality Interest Group was inaugurated. Interest groups for the Pharmaceutical and the Chemical & Petrochemical sectors will be launched in the coming year. In Victoria, Australia, SP AusNet further entrenched itself as a leader in electricity transmission and electricity and gas distribution. This follows its success in securing a natural gas extension programme to supply natural gas to a dozen regional towns, in tendering for two major transmission network augmentation projects, and the further expansion and development of its electricity transmission and distribution networks. NEW SERVICE INITIATIVES We continued to move towards improving customer services. A Pay-As-You-Use (PAYU) metering scheme was successfully launched, enabling customers whose utility payments are in arrears to better manage their consumption while discharging their outstanding bills over a period of time. 8 Singapore Power Annual Report 2005 We also made it even easier and more convenient for customers to pay their utility bills by expanding the channels to include the island-wide 7-Eleven convenience store chain. Customers can now pay their utility bills at any 7-Eleven convenience store, at any time — day or night — using cash, NETS or CashCard. A new common utility enquiry hotline was also introduced for the convenience of customers. An independent “mystery” audit last year found that overall service level improved from 77% to 85% over a 12-month period. A Customer Satisfaction Survey reinforced this finding, with results showing that 83% of customers were satisfied with our services. SERVING THE COMMUNITY We have always strived to be a part of the community in which we operate, contributing to charities and worthwhile causes. We are happy that we were able to commemorate our 10th Anniversary Celebrations with the launch of the Singapore Power Heartware Fund. We have raised more than $1 million so far to support Home Help Service programmes administered by the Community Chest. We are committed to raising $1 million a year for three years. My fellow members on the SP Board of Directors have faithfully and diligently carried out their duties, and have been unstinting in their valuable counsel. I would like to extend my deep appreciation to Ms Engeline Teh Guek Ngor who retired from the Board in July 2005. Our achievements in FY2005 were also made possible because of the dedication and commitment of our staff, all of whom can be proud of their role and position in the organisation and its success. The Union of Power and Gas Employees (UPAGE) has been highly effective in representing our staff through their responsible dialogue and partnership with Management to further improve employee relations for the benefit of all. We are also fortunate to have customers and business partners who are willing and responsive in working closely with us. I look forward to your continued support as Singapore Power builds on its core competencies to secure its future. LAST BUT NOT LEAST It has, indeed, been a very busy year for the SP Group, and a very fruitful one too. It is with great pleasure that I acknowledge and thank all those who have been a part of it. NG KEE CHOE Chairman Singapore Power Annual Report 2005 9 Board of Directors MR NG KEE CHOE, CHAIRMAN Mr Ng Kee Choe, 61, 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 nonexecutive Chairman of SP AusNet*. Mr Ng’s other current board directorships include his position as Chairman of NTUC Income Insurance Cooperative Ltd, and Director of Singapore Airport Terminal Services Ltd and Singapore Exchange Limited. He is also the President Commissioner of PT Bank Danamon Tbk of Indonesia, a member of the Temasek Advisory Panel and a member of the Advisory Council of China Development Bank. For his contributions to public service, Mr Ng was awarded the Public Service Star Award in 2001. MR TAN GUONG CHING Mr Tan Guong Ching, 59, is a nonexecutive independent Director of Singapore Power Limited. He was appointed Director on 1 June 2000. He is the Chairman of various companies, including SP PowerGrid Limited, Singapore Technologies Aerospace Ltd, Singapore Technologies Telemedia Pte Ltd, STT Communications Ltd and StarHub Ltd. He is also a Director of Allco (Singapore) Limited and Singapore Pools (Private) Limited. Mr Tan was formerly the Permanent Secretary for the Ministry of Home Affairs. 10 Singapore Power Annual Report 2005 MR ALAN CHAN HENG LOON Mr Alan Chan Heng Loon, 53, is a non-executive independent Director of Singapore Power Limited. He was appointed Director on 1 June 2001 and is also the Chairman of SP PowerAssets Limited. Mr Chan is currently the Chief Executive Officer and a Director of Singapore Press Holdings Ltd. He is the Chairman of Urban Redevelopment Authority and is a member of the External Review Panel (Quality Assurance Framework for Universities), the Board of Trustees, Courage Fund, Board of Governors of The Singapore-China Foundation, INSEAD Singapore Council and INSEAD France. 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 is currently on the boards of MediaCorp TV Holdings Pte Ltd, MediaCorp Press Ltd, Singapore Press Holdings Foundation Limited and TOM Outdoor Media Group Limited. MR ERIC GWEE TECK HAI Mr Eric Gwee Teck Hai, 67, is a nonexecutive independent Director of Singapore Power Limited. He was appointed Director 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. In addition, he is the Chairman of the Board of Governors for the Institute of Technical Education (ITE) and ITE Holding Pte Ltd. Mr Gwee was the Chairman of the Public Transport Council from 1989 to 2005. He was also the Chairman of CPG Corporation Pte Ltd and was a Director of ExxonMobil Singapore Pte Ltd till 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. DR GEORGE ALLISTER LEFROY Dr George Allister Lefroy, 66, is a non-executive independent Director of Singapore Power Limited. He was appointed Director of Singapore Power Limited on 1 June 2000. He is also a Director of SP AusNet* and Cobar Consolidated Resources Ltd, as well as the President/Commissioner of PT Chandra Asri. Dr Lefroy is the Chairman of the Cambridge Australian Trust, Victorian Committee and a State Councillor of St John Ambulance Australia (Victoria) Pty Ltd. He also founded the Bruce Lefroy Centre for Genetic Health Research. Dr Lefroy was formerly the Executive Vice-President of Shell Chemicals Ltd and held directorships in Shell Eastern Petroleum Ltd, Petrochemical Corporation of Singapore Pte Ltd, Basell Eastern Pte Ltd and Saudi Petrochemical Company Ltd. Singapore Power Annual Report 2005 11 Board of Directors MR KEITH TAY AH KEE Mr Keith Tay Ah Kee, 62, is a nonexecutive independent Director of Singapore Power Limited. He joined the Board on 1 January 2002. He currently serves on the boards of several public companies, including Singapore Reinsurance Corporation Ltd, Singapore Post Limited and Stirling Coleman Capital Limited, of which he is Chairman. He is also the Chairman of Aviva Ltd. Mr Tay is currently a board member of the Singapore International Chamber of Commerce, of which he was Chairman from 1995 to 1997. He is also Vice Chairman of the Singapore Institute of Directors. He was the President of the Institute of Certified Public Accountants of Singapore from 1982 to 1992 and was the Singapore Representative on the Council of the International Federation of Accountants from 1987 to 1990. Mr Tay was also Chairman and Managing Partner of KPMG Peat Marwick from 1984 to 1993. MR HO TIAN YEE Mr Ho Tian Yee, 54, is a non-executive independent Director of Singapore Power Limited. He joined the Board on 1 May 2003. Currently, Mr Ho is the Executive Director of Pacific Asset Management (S) Pte Ltd and holds directorships in publicly-listed companies, including Fraser & Neave Ltd, Singapore Exchange Limited and Great Eastern Holdings Ltd. He also sits on the boards of non-listed companies — The Overseas Assurance Corporation Ltd, Times Publishing Ltd and The Great Eastern Life Assurance Company Ltd. Mr Ho was awarded the Public Service Medal in 1997. Mr Tay qualified as a Chartered Accountant in London, UK, in 1968, and is a Fellow of the Institute of Chartered Accountants in England and Wales. He was conferred the first International Award for outstanding contribution to the profession by the Institute of Chartered Accountants in England and Wales in 1988 and the BBM Public Service Star in 1990. The Institute of Certified Public Accountants of Singapore also conferred on Mr Tay the Gold Medal for distinguished service to the profession and made him an Honorary Fellow in 1993. 12 Singapore Power Annual Report 2005 MR TAN CHEE MENG Mr Tan Chee Meng, 49, is a nonexecutive independent Director of Singapore Power Limited. He was appointed Director on 1 August 2005. He is also a Director of SP PowerAssets Limited. Currently, he is the Managing Partner of Harry Elias Partnership and was appointed a Senior Counsel in 2006. Mr Tan is a member of the Singapore Institute of Arbitrators and an Accredited Adjudicator of the Singapore Mediation Centre. He is also on the Panel of Accredited Arbitrators of the Singapore International Arbitration Centre, and of Badan Arbitrase Nasional Indonesia. MR BOBBY CHIN YOKE CHOONG Mr Bobby Chin Yoke Choong, 54, is a non-executive independent Director of Singapore Power Limited. He was appointed Director on 23 January 2006. Currently, he is the Chairman of Singapore Totalisator Board and Changi Airports International Pte Ltd. Mr Chin serves on the boards of the Competition Commission of Singapore and several publicly-listed companies including Oversea-Chinese Banking Corporation Limited, AV Jennings Limited, The Straits Trading Company Limited, Yeo Hiap Seng Limited and Stamford Land Corporation Ltd. He also sits on the Boards of Trustees of the Singapore Management University and the Singapore Indian Development Association (SINDA). He was the Managing Partner of KPMG Singapore from 1992 to 2005 and Chairman of Urban Redevelopment Authority from April 2001 to March 2006. In 2003, Mr Chin was awarded the Public Service Medal. MR QUEK POH HUAT Mr Quek Poh Huat, 59, is the Group Chief Executive Officer and a Director of Singapore Power Limited. Within the Singapore Power Group, Mr Quek serves as Director on the boards of SP PowerAssets Limited, SP PowerGrid Limited and SP Services Limited. He is the Chairman and a Director of PowerGas Limited and SPI Management Services Pty Ltd. Mr Quek is also a Director of SP AusNet*. He is a board director of publicly-listed Singapore Technologies Engineering Ltd. Mr Quek is Singapore’s non-resident Ambassador to Sweden. He was awarded the Public Service Star Award in 1994. Information as at 15 June 2006 * 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. Singapore Power Annual Report 2005 13 Corporate Governance Ethics and Accountability The SP Board is committed to good corporate governance. The principles set out in the revised Code of Corporate Governance 2005 (the Code) for listed companies are followed closely by SP although it is not required to do so. SP has used the Code as its guide 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 during the financial year, strengthens ethical business conduct in the Group. SP endeavours to enhance shareholder value by ensuring the highest standards of corporate governance and accountability. 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 sound 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 seven times and held a Board retreat. Newly-appointed Board Directors attend an orientation programme to familiarise themselves with the Group’s business and governance practices. The Group also provides on-going education on Board processes and best practices. ACCESS TO INFORMATION The Board is provided with complete information prior to Board meetings and on an on-going basis. Board papers include management financial reports, annual budgets and performance against budget, announcement of results, matters requiring Board’s decision, updates on key outstanding issues and disclosure documents as well as updates on new legislative developments. The Board also has separate and independent access to Senior Management and the Company Secretary. The Company Secretary ensures that Board procedures are observed and that the Company complies with the requirements of the Companies Act and other applicable regulations. 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 advice. 14 Singapore Power Annual Report 2005 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. Management currently provides the Board with appropriately detailed management accounts of the Group’s performance, position and prospects on a monthly basis. There is a strong element of independence in the Board composition — independent nonexecutive Directors constitute more than threequarters of the entire Board. The independence of each Director is reviewed annually by a Nominating Committee in accordance with the Code of Corporate Governance. The current size of 10 Board members is appropriate for effective decision-making, taking into account the scope and nature of the Group’s operations. Collectively, the Directors possess a wealth of expertise and experience in the management of business at senior and international levels. BOARD COMMITTEES The Board is supported by specialised committees to facilitate effective supervision of Management. These are the Audit Committee, the Risk Management Committee, the Finance Committee, the Nominating Committee and the Staff Development and Compensation Committee. Audit Committee The Audit Committee (AC) comprises three non-executive 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 members are: Mr Keith Tay Ah Kee (Chairman) Mr Tan Chee Meng Mr Timothy Chia Chee Ming (co-opted external member) 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: • 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 accounts of the Group and the Company; • review of the independence and objectivity of the external auditors; and • nomination of external auditors for re-appointment. Singapore Power Annual Report 2005 15 Corporate Governance Risk Management Committee The Risk Management Committee (RMC) assists the Board in fulfilling its risk oversight responsibilities. The members are: Mr Ho Tian Yee (Chairman) Mr Tan Guong Ching Mrs Oon Kum Loon (co-opted external member) The RMC reviews and approves: • the type and level of business risks (risk appetite) that the Company, its subsidiaries and associated companies undertake on an integrated basis to achieve their business strategy; and • the Group-wide risk policies, procedures and methodologies for identifying, measuring, monitoring and managing risks that are consistent with its risk appetite. The RMC meets at least three times a year. The RMC is supported by the Group Risk Management Unit in its oversight 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 responsibilities of the Finance Committee are to: • consider and recommend, for SP Board’s approval, SP Group’s annual operating and capital expenditure budgets and business plans; • consider and approve SP Group’s mergers, acquisitions, divestments or corporate financial restructuring; • consider and approve or endorse, as the case may be, SP Group’s borrowings and financings; and • consider and approve or endorse such other matters as provided from time to time in the Authority Manual of SP Board. The Committee 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* * Non-independent Nominating Committee The Nominating Committee (NC) is responsible for formulating policies and guidelines on matters relating to Board appointments and re-appointments. The Directors’ performance, contribution and independence are taken into consideration in the Committee’s review and assessment. The NC comprises three Directors. 16 Singapore Power Annual Report 2005 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 * * Non-independent 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 requires not less than one-third of Directors to retire by rotation at every AGM. 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 in respect of his own remuneration. The SDCC comprises three Directors, two of whom are independent Directors. The members are: Mr Ng Kee Choe (Chairman)* Mr Tan Guong Ching Mr Alan Chan Heng Loon * Non-independent COMMUNICATION WITH SHAREHOLDER The Company values communication and ensures that timely and adequate disclosures of material information of the Company are made available to the shareholder. 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 Singapore Power Annual Report 2005 17 Senior Management MR QUEK POH HUAT Group Chief Executive Officer MR SIM KWONG MIAN Managing Director (SP PowerGrid) MR YAP CHEE KEONG Chief Financial Officer & Group Head (Corporate Services) MR NINO FICCA Managing Director (SP AusNet) MR ONG KENG KIAT Managing Director (SP Services) MR JOHN BAPTIST TAY Managing Director (PowerGas) 18 Singapore Power Annual Report 2005 MR WONG CHIT SIENG Head (Information Systems) MRS LYNN LOH Head (Human Resource & Administration) MS CHI PING HUEY Head (Legal & Corporate Secretariat) MS LOH HUI YIN Head (Corporate Communications) MR LIM HOWE RUN Head (Strategic Investments) & Head (Group Risk Management) MR WONG TOON SUAN Head (Group Initiatives) Singapore Power Annual Report 2005 19 Corporate Highlights Consolidation and Celebrations Two major events marked SP’s corporate calendar in FY2005 — SP AusNet’s public listing in Australia and Singapore, and SP’s 10th Anniversary Celebrations. Right: An SP AusNet IPO marketing balloon at Raffles Place in Singapore’s central business district In preparation for SP AusNet’s Initial Public Offering (IPO) and its listing, our business interests in Australia were restructured and consolidated. We sold our merchant energy business, and we integrated our transmission and distribution networks under SP AusNet. At the same time, a number of events and activities were organised to commemorate our tenth year of incorporation. In addition to the celebrations, we launched the Singapore Power Heartware Fund to focus our community efforts on helping the elderly in need of assistance. SP AUSNET IPO The SP AusNet IPO, which attracted much interest and was over-subscribed by more than two times, scored a number of firsts for SP and the capital market in Singapore. It is the first time the Group has listed one of its business units. When SP AusNet’s IPO was launched in November 2005, it was also the largest in Singapore since 1993. Additionally, it was the first dual Australian and Singapore IPO. SP AusNet has a primary listing on the Australian Stock Exchange and a secondary listing on the Singapore Exchange. Trading commenced on 14 December 2005. SP AusNet raised more than A$1.4 billion from investors in Australia, Singapore, United States and Europe. The complexity of having to comply with differing regulatory regimes in three separate markets was ably addressed by the team of in-house and external professionals. 20 Singapore Power Annual Report 2005 The SP AusNet IPO offered stapled securities, which is still relatively new in Singapore. Investors in SP AusNet hold triple-stapled securities consisting of one share of SP Australia Networks (Transmission) Ltd, one share of SP Australia Networks (Distribution) Ltd, and one unit in SP Australia Networks (Finance) Trust. SP, through wholly-owned subsidiary Singapore Power International Pte Ltd, holds a majority 51% stake in SP AusNet. SPI Management Services Pty Ltd (wholly-owned by SP) performs management services for SP AusNet under a management services agreement. The key benefits of stapled securities include cash distributions in excess of accounting profits and flexibility for future acquisitions. SP, through its wholly-owned subsidiary, SP (Belgium) Holdings SA, offered a 49% stake or 1.025 billion stapled securities in SP AusNet to investors. In Singapore, 210 million securities were allocated, of which 35 million went to the public. The strong support for the IPO resulted in SP AusNet fixing the price at A$1.38 ($1.75) per security. This represented an annualised forecast distribution yield of 7.96% for the financial year ended 31 March 2006, and increasing to 8.17% for the financial year ending 31 March 2007. Top: Group CEO Quek Poh Huat (right) and SGX CEO Hsieh Fu Hua at the start of trading for SP AusNet on the Singapore bourse. Left: First day of trading for SP AusNet on the Australian exchange Singapore Power Annual Report 2005 21 Corporate Highlights Minister of Trade and Industry, Mr Lim Hng Kiang, witnessing the presentation of the cheque for $750,000 to the National Council of Social Service SINGAPORE POWER 10TH ANNIVERSARY CELEBRATIONS Having successfully propelled itself from a domestic-based utility company to an international and dynamic group with a footprint across the Asia-Pacific region, SP celebrated its 10th Anniversary during the year. The highlight of the celebrations was the Anniversary Dinner held on 1 October 2005, which brought together key partners and players who have contributed to the development of the energy industry in Singapore. Some 700 guests and staff attended the Dinner, which was graced by the Minister of Trade and Industry, Mr Lim Hng Kiang, and Mrs Lim. The Minister launched the Singapore Power Heartware Fund during the Dinner at which a cheque for $750,000 was presented to the National Council of Social Service. Of the amount presented, $538,000 was raised through the sale of the dinner tables. The remaining amount was raised through donations from corporate sponsors and a pledge card drive among our staff, with SP matching staff pledges dollar-for-dollar. SINGAPORE POWER HEARTWARE FUND As SP celebrated a decade of progress and growth, the less fortunate in our society were not forgotten. As part of its 10th Anniversary Celebrations, the Singapore Power Heartware Fund was launched with the aim of achieving greater focus in our endeavours to enhance the quality of life of those in need of help. Thus, the Fund is committed to specifically helping the elderly in need, a segment of our population which is growing rapidly. The Fund will support Home Help Service programmes for the next three years. The programmes, administered by the Community Chest, benefit some 2,700 elderly people and their caregivers by providing essential services such as meal delivery, personal care hygiene, housekeeping, laundry and transport for medical consultations. A slew of fund-raising activities resulted in more than $1 million being raised for the Fund, with every dollar raised going to the beneficiaries. We are committed to raising $1 million a year for three years. A portion will be used to purchase hardware and equipment such as vans for old folks’ homes, and wheel chairs for the less mobile. All staff are also being encouraged to take part in voluntary work for the elderly under the various Home Help Service programmes, for which one day’s volunteer leave is given. 22 Singapore Power Annual Report 2005 Group Financial Highlights Key Financial Data REVENUE AND PROFIT ������������� �������������������� ����� ����� ����� ����� ��������� ����� ����� ����� ��� ��� ����� ��� � ��������� ��������� ��� ��� ��������� ��������� ������������� ������������������� ���������������� ASSETS AND SHAREHOLDER’S EQUITY ������������ �������������������� ������ ������ ������ ������ ��������� ������ ������ ����� ����� ����� � ��������� ��������� ��������� ��������� Singapore Power Annual Report 2005 23 24 Singapore Power Annual Report 2005 Operational Review Singapore Power At Home SP builds on its core capabilities and wealth of experience in the utilities industry to strengthen its future prospects. In the home market, we are firmly entrenched in electricity and gas transmission and distribution, and utilities support services through four major subsidiaries — SP PowerAssets, SP PowerGrid, PowerGas, and SP Services. Singapore Power Annual Report 2005 25 SP PowerGrid 26 Singapore Power Annual Report 2005 Operational Review management Mr Sim Kwong Mian Managing Director Mr Chan Eng Kiat General Manager (Regulatory & Network Planning) Mr Chang Swee Tong Deputy Managing Director Mr Albert Teow Director (Corporate Services) Mr Cheng See Tau General Manager (Network Management) Mr Law Chin Ho Director (Finance) Mr Chung Choon Heong General Manager (Network Development) Singapore Power Annual Report 2005 27 Our state-of-the-art Supervisory Control and Data Acquisition (SCADA) system ensures power supply reliability. At the Core of Power Quality 28 Singapore Power Annual Report 2005 Operational Review SP PowerGrid We have built up a robust electricity transmission and distribution network that is world-class in standard, employing leading-edge technology. At the heart of this network are two subsidiaries. They are geared towards providing quality power through investments in and management of a national electricity grid infrastructure that provides for future growth. SP PowerAssets (SPPA) is the owner of electricity transmission and distribution assets in Singapore. Its total fixed assets, valued at $6.5 billion, comprise a transmission network at 400kV, 230kV and 66kV, and a distribution network at 22kV, 6.6kV and 400V. SP PowerGrid (SPPG) manages and operates the electricity transmission and distribution networks owned by SPPA. SPPG adopts state-of-the-art technology and innovations to put in place a resilient infrastructure that ensures reliable and efficient supply of electricity to customers. Singapore Power Annual Report 2005 29 Checking gas content in cable oil: Our team of highly-skilled engineers and technicians is committed to ensuring that our transmission and distribution networks run smoothly. 30 Singapore Power Annual Report 2005 Operational Review SP PowerGrid RELIABILITY AND EFFICIENCY: NETWORK PERFORMANCE IMPROVEMENTS Key performance indicators for the electricity network for the year under review recorded major improvements over the same period last year. The system average interruption time, which has improved over the years, was further reduced from 4.32 minutes to 0.29 minute for the year, a significant improvement of 93% over the previous year. The number of supply interruptions, which saw continued reductions over the years, went down from 0.58 to 0.40 interruptions per 1,000 customers during the year under review, a healthy improvement of 31%. PREVENTIVE CHECKS: CONDITION MONITORING FOR BETTER PERFORMANCE SPPG’s efforts in condition monitoring continued to contribute to better performance, resulting in 55 potential failures being averted during the year. Since FY2001, a total of 255 potential failures were prevented, thus saving a repair bill of $26.4 million. WORKING IN PARTNERSHIP: IMPROVING SERVICE AND COMMUNICATION In its continual efforts to maintain close rapport with customers, SPPG organised the inaugural Power Quality Forum on 25 May 2005. The Forum, attended by customers, suppliers and retailers, provided a platform for knowledge sharing of power quality management experiences by renowned international experts. SHARING PRODUCTIVITY GAINS: GRID PRICING FURTHER REDUCED The average grid charge was reduced from 3.75 cents per kWh to 3.67 cents per kWh. This is the fourth consecutive year of price reductions to customers. High-tension customers were segmented into two new tariff categories — HT-Large (customers with monthly contracted capacity of at least 1,700kW) and HT-Small (contracted capacity of less than 1,700kW) — to better reflect the cost of service to the two groups of industrial customers. This is yet another way to help customers improve their competitiveness and make Singapore more attractive for investors. The setting up of Power Quality Interest Groups, which focus on high-technology industry sectors and provide opportunities for regular exchange of experiences and knowledge, was announced at the Forum. The Electronics & Semiconductor Power Quality Interest Group was inaugurated in October 2005, and interest groups for the Pharmaceutical and the Chemical & Petrochemical sectors will be established in the coming year. Singapore Power Annual Report 2005 31 Operational Review SP PowerGrid A high-level Power Quality Advisory Panel, led by SPPG Chairman with chief executives from industry as members, was formed for industry leaders to address power quality issues at a macro and strategic level. Customer Managers were appointed to enhance communication and working relations with SPPG’s key customers. There are about 150 key customers with whom SPPG maintains close rapport. A team of about 40 SPPG engineers visit these customers on a regular basis. REALITY CHECK: CUSTOMER SATISFACTION INDEX In the second annual customer survey conducted in December 2005, customers appraised SPPG with a customer satisfaction Work in progress at a new 400kV substation 32 Singapore Power Annual Report 2005 index of 7.5 out of 10. This is a significant improvement over the 6.6 rating in the previous year, and a testimony to the significant strides made by SPPG in meeting the needs of its customers. INVESTING FOR THE FUTURE: ON-GOING NETWORK DEVELOPMENT AND PLANNING The year in review saw good progress made on major 400kV and 230kV projects. Works are continuing well in the following, which are scheduled for completion in 2006 and 2007: • A 400kV substation to meet increasing electricity demand in the eastern part of Singapore; • A 230kV substation to meet anticipated demand growth in the northern part of Singapore; • The installation of a phase-shift transformer, allowing more efficient utilisation of transmission circuits to cater for additional power export from the northern part of the island; and • The installation of Time-of-Day (TOD) meters and telephone lines for some 4,700 contestable consumers under Phase 2 of the retail market liberalisation. In addition to on-going network development, major projects and initiatives in network planning were launched during the year. BREAKING NEW GROUND: 230/22KV SUBSTATION Singapore’s first substation with direct transformation from 230kV to 22kV will be installed in 2008/2009. Bypassing the 66kV voltage will result in a more efficient and reliable transportation of power to customers. The substation will serve as the primary power source for the new downtown at Marina Bay where the development will include the Integrated Resort and Business Financial Centre. ENHANCING EFFECTIVENESS: RE-ORGANISING FOR SHARPER FOCUS Organisational changes were made to achieve greater efficiency and effectiveness with existing functions. The Asset Management Branch and Procurement Branch were created; and a Corporate Relations Section was established under the Corporate Services Branch. The Asset Management Branch focuses on the optimisation of lifecycle management of network assets. Singapore Power Annual Report 2005 33 Operational Review SP PowerGrid The year saw good progress made on major projects, including an undersea cable tunnel. The Procurement Branch undertakes central procurement for the entire SP Group in Singapore. Through collaborative and consolidated procurement, SP can potentially enjoy price advantages. The Corporate Relations Section is tasked to develop the overall customer management strategy, co-ordinate customer management and communications programmes, and facilitate training for Customer Managers. QUALITY HUMAN RESOURCES: A PEOPLE DEVELOPER COMPANY SPPG joined the ranks of people-centric companies certified by SPRING Singapore as having attained the People Developer Standard. This achievement in January 2006 is a testimony of SPPG’s commitment to developing its people through the adoption and implementation of quality human resource development practices. 34 Singapore Power Annual Report 2005 Key Network Indicators SHORTER INTERRUPTIONS System Average Interruption Time (Minutes) FEWER INTERRUPTIONS Number of Supply Interruptions per 1,000 Customers � ��� ������������������� � � � � ���� ���� ���� ���� ����� ��������������������������������� ��� ��� ��� ���� ���� ���� ���� ���� ���� � ����� ����� ����� ����� ����� ����� ���� ��� ����� ����� ����� ����� ����� ����� �������������� �������������� POWERING ECONOMIC GROWTH Real GDP vs Electricity Net Demand Growth (% Change) POWER DELIVERY Electricity Transmitted and Distributed (GWh) �� ���� ������ ��������������������� � � � � � �� ��� ��� ��� ��� ����� ��� ��� ��� ��� ��� ��� ������� ���������������� ��� ������ ������ ������ ������ ������ ������ ������ ������ ������ �� �� �� �� �� �� �� � ����� ����� ����� ����� ����� ����� ������������� �������������� GWh percentage change based on Actual Sales GWh values based on Account Sales Singapore Power Annual Report 2005 35 PowerGas 36 Singapore Power Annual Report 2005 Operational Review management Mr John Baptist Tay Managing Director Mr Lim Song Hau Director (Network Development) Mr Tai Seng Chong Director (System Operation) Mr Chin Terk Chung Director (Network Management) Singapore Power Annual Report 2005 37 Growing Gas Networks 38 Singapore Power Annual Report 2005 Laying of gas transmission pipelines that will cater to future needs Operational Review PowerGas Being Singapore’s oldest and most established gas company, PowerGas has a wealth of expertise that comes from more than 140 years of serving the local gas industry. Today, PowerGas is the sole gas transporter and system operator in Singapore. It manages a transportation network of about 2,800km of transmission and distribution pipelines. INCREASING CAPACITY: TRANSMISSION NETWORK EXPANDED PowerGas commissioned the 15-km pipeline extension to Tuas Power on 27 April 2005, about one and a half months ahead of schedule. With this completion, the three major generation companies have access to two sources of natural gas supply. Further work will be carried out in 2006 to enable additional gas injection from the Tuas Pipeline into the Sakra- Senoko pipeline system. Singapore Power Annual Report 2005 39 Gas analysis checks are part of a quality control system at the natural gas facility of PowerGas. 40 Singapore Power Annual Report 2005 Operational Review PowerGas Another 6km of gas transmission pipeline is being constructed to transport Malaysian gas to Keppel Energy’s 500MW co-generation power plant on Jurong Island. Work started in December 2005 and is expected to be completed by the third quarter of 2006. EXPANDING REACH: DISTRIBUTION AND TOWN GAS NETWORKS ENHANCED The natural gas distribution network in Jurong and Tuas was extended by about 1km to support the delivery of natural gas to industrial customers. Supply reliability will be further improved by end-2006 with the development of offtake stations in the western part of Singapore to enable additional injection points from the transmission system into the distribution network. Maintenance (left) and monitoring (below) are essential to gas supply reliability. Singapore Power Annual Report 2005 41 The Meter Testing Laboratory of PowerGas has received SAC-SINGLAS Certificate of Accreditation. 42 Singapore Power Annual Report 2005 Operational Review PowerGas The town gas network was extended by 16km to reach more customers in new Housing & Development Board estates, as well as private residential and commercial premises. The year also saw 13km of old pipelines renewed, and the diversion of 5km of pipelines affected by mass rapid transit extension works. PASSING THE TEST: ACCREDITATION OF METER TESTING LABORATORY The Meter Testing Laboratory of PowerGas, located at its National Gas Control Centre, was accredited under the Singapore Accreditation Council-Singapore Laboratory Accreditation Scheme. It received its Certificate of Accreditation on 9 May 2005. With this accreditation, the laboratory can test meters up to a capacity of five cubic metres per hour, and verify the meters’ accuracy to international standards. GEARING UP: THE NEW GAS INDUSTRY FRAMEWORK Under the new gas industry framework, PowerGas will be the sole transporter and gas system operator (GSO). It will own and operate the onshore gas transportation network, which includes the pipelines currently owned and operated by SembCorp Gas Pte Ltd. The interconnection of the existing network of PowerGas and that of SembCorp Gas is being studied by the Energy Market Authority (EMA). The new industry framework will enable an open-access gas transportation network in a multi-shipper, multi-retailer market environment. The Gas Network Code was approved by the EMA in October 2005. Work is continuing by the Standard Operating Procedures (SOP) Industry Working Group to develop SOPs. These will enable close co-ordination between the Transporter/GSO, shippers, end-users and Power System Operator under various operating scenarios, including contingency operations under the Gas Network Code framework. To meet the requirements of the Gas Network Code and SOPs, PowerGas is developing the Gas Transportation System Solution, a web-based IT system. It will facilitate gas nominations by shippers, as well as scheduling and the balancing of gas injections and withdrawals in the transportation network. Singapore Power Annual Report 2005 43 SP Services 44 Singapore Power Annual Report 2005 Operational Review management Mr Ong Keng Kiat Managing Director Mrs Jeanne Cheng General Manager (Services & Marketing) Mr Lim Ah Kuan Director (Operations) Ms Lily Tan Acting Director (Information Systems) Ms Derbin Kwek Deputy Director (Finance & Accounts) Singapore Power Annual Report 2005 45 An integrated customer service call centre is dedicated to attending to the needs of our more than one million utility customer accounts. At the Heart of Customer Service 46 Singapore Power Annual Report 2005 Operational Review SP Services SP Services provides a convenient one-stop customer service for electricity, water, piped gas supplies and refuse collection in Singapore. It is also the Market Support Services Licensee in the New Electricity Market, enabling a smooth and seamless operation of the competitive electricity market for the benefit of consumers and the industry as a whole. SP Services provides services such as meter reading and data management, and facilitates consumer registration and transfers from one retailer to another. It also provides other utilities support services such as billing and payment collection on behalf of SP PowerGrid (SPPG) and other utility service providers. These include the Public Utilities Board (PUB), City Gas and various refuse collection companies. Leveraging on its experience in consolidated billing and payment collection, SP Services provides an efficient and convenient service for every home and business in Singapore. SURPASSING BENCHMARKS: SERVICE QUALITY SP Services views feedback and suggestions from principals and customers as critical to further improvements. In line with this focus, in the last quarter of 2005, it conducted a comprehensive Customer Satisfaction Survey of 800 customers who were randomly selected. Singapore Power Annual Report 2005 47 Operational Review SP Services SP Services’ branch at Woodlands Civic Centre was recently renovated and is one of our initiatives to go the extra mile for our customers. The survey results were very good — 83% of the customers surveyed were satisfied with SP Services. The high rating also placed SP Services ahead of five other major service providers in Singapore that were chosen as benchmarks for comparison. The survey also helped SP Services identify areas for improvement. SP Services’ commitment towards service excellence is also shown in its service level performance. It exceeded all the regulated service levels and also introduced several new initiatives to boost service quality. THE EXTRA MILE: NEW INITIATIVES IN SERVICE EXCELLENCE Providing quality service and greater convenience for its customers continued to be the focus of SP Services. The year under review saw the launch of several new customer service initiatives. SP Services successfully launched the Pay- As-You-Use (PAYU) metering scheme on 16 May 2005. As at 31 March 2006, some 9,000 customers have signed up for the prepaid metering scheme. The scheme enables customers to better manage their consumption while paying their arrears over a period of time. In another customer service initiative, SP Services partnered DBS Bank to launch the POSB Everyday Card on 30 September 2005. Customers can pay their utility bills conveniently and, at the same time, enjoy a wide array of benefits. These include instant cash rebates, ranging from 1% to 20%. The cash rebates in the form of Daily$ can be used to offset 48 Singapore Power Annual Report 2005 payment for items such as utilities, petrol, groceries as well as cable television and mobile phone charges. Customers who pay their utility bills through the POSB Everyday Card enjoy a 1% cash rebate on their utility payment. Given the company’s continuous efforts to improve service to customers, SP Services teamed up with the 7-Eleven convenience store chain to introduce a new payment mode. Since 12 December 2005, customers have been able to pay their utility bills at any of the more than 300 7-Eleven stores island-wide at any time of the day, and night, using cash, NETS or CashCard. The service has been well-received by customers. (Smile, Timely, Accessible, Reliable) service guidelines and customer servicing skills. All frontline staff went through customised programmes to acquaint or refresh themselves with the STAR service and to learn new service skills. SP Services was awarded the People Developer Standard in May 2005. The award recognises that SP Services has adopted sound, effective strategies on staff development. The PAYU metering scheme helps customers better manage their utility consumption. SP Services introduced a new common utility enquiry hotline — 1800-2222 333 — for the convenience of customers who call the various utility service providers. This initiative is a joint effort of SP Services, SPPG, PUB and City Gas. Customers who call the billing enquiry hotline are routed to SP Services, SPPG, PUB or City Gas, depending on the nature of their enquiries. ESSENCE OF EXCELLENCE: OUR PEOPLE AND OUR PROCESSES SP Services obtained its ISO 9001:2000 certification in July 2004. A surveillance audit by external assessors conducted in February 2006 affirmed that SP Services had continued to comply with the ISO (International Organization for Standardization) certification standards. SP Services is committed to developing its staff, firmly believing that a trained and skilled workforce will enable the company to meet the challenges ahead. During the year, it provided 91 training hours per person for all levels of staff. PLAYING AN INTEGRAL ROLE: ELECTRICITY MARKET DEREGULATION SP Services continued to play an integral role in expanding the liberalisation of the electricity market. During the year, more contestable consumer accounts were activated, bringing the total number of contestable customers to 9,264 as at 31 March 2006. These consumers can choose to buy electricity from retailers, or directly or indirectly from the wholesale electricity market. In 2005, the company collaborated with its training partner to develop and roll out a series of service skills training programmes incorporating the Strategic Service Intent STAR Singapore Power Annual Report 2005 49 50 Singapore Power Annual Report 2005 Operational Review Singapore Power Overseas SP envisions itself becoming a leading energy player in the Asia-Pacific region. We have a strong presence in Australia through SP AusNet, which was publicly-listed in 2005, and investments in South Korea and Taiwan. Singapore Power Annual Report 2005 51 SP AusNet 52 Singapore Power Annual Report 2005 Operational Review management Mr Nino Ficca Managing Director Mr Charles Popple General Manager (Regulatory & Business Strategy) Mr Paul Adams General Manager (Network Services Group) Mr John Azaris General Manager (Human Resources & Communications) Mr Norm Drew General Manager (Transmission Network Development) Mr Peter Merritt General Manager (Business Systems & Services) Mr Peter Buck General Manager (Distribution Network Development) Mr Adrian Hill Director (Strategic Projects) Mr Terry Fowler General Manager (Finance) Ms Elizabeth Mildwater General Counsel & Company Secretary Singapore Power Annual Report 2005 53 New Phase for SP in Australia 54 Singapore Power Annual Report 2005 Operational Review SP AusNet The past year certainly brought many changes to SP’s Australian arm, SP AusNet, culminating in its dual public listing in Australia and Singapore. Leading up to this, the merchant energy business was divested, and the electricity transmission business and the electricity and gas distribution businesses integrated. These changes herald a new era for the Australian energy sector, and a new phase for SP in Australia. SP AusNet, which has an ”A1” rating from Moody’s and an “A” rating from Standard & Poor’s, is the largest combined electricity transmission and electricity and gas distribution business in Australia. It is 51% owned by Singapore Power International Pte Ltd, a whollyowned subsidiary of SP, following SP AusNet’s Initial Public Offering (IPO). SPI Management Services Pty Ltd (whollyowned by SP) performs management services for SP AusNet under a management services agreement. The business transition this past year was comprehensive and beneficial, and the focus on extracting and capitalising on the synergies of bringing together the network businesses proved fruitful. SP AusNet is committed to ensuring that equipment remain in the best working order. Singapore Power Annual Report 2005 55 SP AusNet provides electricity to over one million homes in Victoria. 56 Singapore Power Annual Report 2005 Operational Review SP AusNet A new integrated business structure and the market launch of a new brand name, SP AusNet, was just the beginning of a hectic and successful year, with the highlights of the SP AusNet calendar being its IPO in November 2005 and the start of trading in Australia and Singapore the following month. The strong local management team has a wealth of experience in running the company, and SP AusNet — situated in four of the five growth corridors in Victoria — has strong organic growth potential, contributing to its asset base and regulated revenue streams. GOING REGIONAL: NATURAL GAS EXTENSION PROGRAMME A A$40 million natural gas extension programme for the supply of natural gas to 12 regional towns across the west of the State was rolled out. This programme could potentially see up to 15,000 properties having access to natural gas for the first time. The construction programme, which began in March 2005, constitutes six discrete projects with a total of 12 towns to be reticulated by the end of 2007. When completed, SP AusNet will own and operate the new gas infrastructure. By the close of 2005, the first connection was completed in Creswick, with work underway in the towns of Gisborne, New Gisborne, Macedon, Port Fairy, and Woodend. Connections in all of these towns are due for completion by the end of 2006. In 2007, the towns of Barwon Heads, Camperdown, Lancefield, Maiden Gully, Riddells Creek and Romsey will follow. These first-stage works have increased SP AusNet’s regulated gas asset base by 131km of mains and eight major regulating facilities. These, in turn, position SP AusNet to extend the network in each town as further growth occurs. Planning for the rollout of the natural gas infrastructure was carried out in consultation with a wide spectrum of stakeholders, including Regional Development Victoria, local communities, environmental agencies and councils. Delivery of natural gas to regional areas benefits the local communities through lower energy costs, and drives future investment and employment growth. NETWORK EXPANDS: ELECTRICITY CONNECTIONS IN GROWTH CORRIDORS Many regions across SP AusNet’s operating area have benefited from the expansion and development of the electricity distribution network to support social and economic infrastructure activities. Near the northern border town of Wodonga, the establishment of a large distribution centre for a major retail company called for SP AusNet to install a new zone substation. In the rural east, the expansion of manufacturing plants and industrial estates resulted in network augmentations in Leongatha, Morwell, Sale, Traralgon and Warragul. Singapore Power Annual Report 2005 57 Operational Review SP AusNet Closer to Melbourne, the network’s capacity was boosted to meet the growing demand of manufacturing plants at Monbulk and Rowville as well as the growth in population in the northern and south-eastern growth corridors. New connections were made for urban residential customers in the northern metropolitan corridor (Epping, Mernda, Doreen and South Morang) and the south-eastern corridor of Cranbourne, Pakenham, Berwick and Narre Warren. A marked increase in the energy required to power upgraded water and sewerage infrastructure in growth corridors led to distribution network upgrades in the northern Melbourne growth corridor and, regionally, at Morwell. One area of Victoria state requiring both network upgrades and new connections is South Gippsland where Wonthaggi, Inverloch, Lakes Entrance and several other coastal towns have benefited from the sea-change phenomenon that is driving growth in all sectors. This phenomenon refers to the growing shift in population to the coast. In December 2005, SP AusNet was successful in a competitive tendering process for two major transmission network augmentation projects at Rowville and Moorabool. The two competitive contracts were awarded by VENCorp, the Victorian energy system planner, and are intended to support load growth in Victoria’s metropolitan and regional areas. SP AusNet will provide natural gas to twelve new Victorian towns by end of 2007. 58 Singapore Power Annual Report 2005 Operational Review Asia Investments in Asia SPI SEOSAN CO-GENERATION AND WATER TREATMENT, SOUTH KOREA SP’s investment in South Korea comprises a co-generation plant of 92MW and a water treatment plant of 840 tons/hour. The Seosan industrial utilities complex provides electricity, steam and water treatment services to Samsung Total Petrochemicals Co Ltd, one of the largest petrochemical companies in the country. The utilities complex continued to provide reliable services to Samsung Total during the year. It achieved 100% availability in the supply of water and steam, and 99.9% availability in electricity supply. The complex also completed on schedule a major overhaul in conjunction with the petrochemical complex turnaround in June 2005. The Seosan complex achieved a good safety record, meeting the zero lost time incident standard mandated by Korea Occupational Safety & Health Agency. EVER POWER, TAIWAN SP’s investment in Taiwan comprises a 25% stake in Ever Power IPP Company, an independent power producer, which operates a 960MW combined-cycle power generation plant. The power plant supplies electricity to Taiwan Power Company. During FY2005, Ever Power continued to maintain good availability, meeting the dispatch requirements of Taiwan Power Company. Ever Power also achieved good profitability and maintained a consistent dividend payout to shareholders. The Seosan industrial utilities complex continued to provide reliable services to Samsung Total during the year. Singapore Power Annual Report 2005 59 Beyond Business 60 Singapore Power Annual Report 2005 Our People, Our Community It’s never too early to learn about efficient use of electricity. Our staff explains basic concepts to these young visitors at the Electricity Efficiency Centre at Singapore Power Building. PEOPLE AND COMMUNITY SP Group has a staff strength of close to 3,800 in its Singapore and overseas operations. Just as we are committed to creating value for our customers and shareholders, we are similarly committed to our people, and our community. We support both, we continually learn from each other, and we share ideas and knowledge for a brighter future. Our People: Developing Employees and Expanding the Talent Pool SP accords high priority to staff development, with each staff receiving an average of 61 learning hours a year. In all, 90 in-house training courses were made available to staff during the year, as well as various public seminars, apprenticeship training schemes, overseas training, on-the-job training, and e-learning. Leading-edge training technology was utilised for more effective and “just-in-time” learning. Three new e-learning courses were developed in-house during the year to provide customised training on the Customer Management System. Singapore Power Annual Report 2005 61 Our People, Our Community Right: Our scholarship programme provides us with a growing talent pool. Extreme right: Fostering Union- Management relations through regular dialogue We continued to expand our talent pool through our scholarship programme. A total of five scholarships, three for local universities and two for overseas universities, were awarded in the year. Upon completion of their university studies, our graduating scholars join us as Management Associates and are exposed to different functional areas within the Group. Other leadership training programmes are also provided — such as job rotation across the subsidiaries, specialised courses and challenging assignments on strategic initiatives. Union-Management Relations A strong partnership exists between the Union of Power and Gas Employees (UPAGE) and Management. The Union-Management Seminar held in Kuching in September 2005 is testimony to the efforts made to foster greater understanding between UPAGE and Management. With the support of the Union, SP was able to carry through many initiatives and changes. Working in close liaison with UPAGE, SP participated in the launch on 7 February 2006 of the National Trades Union Congress (NTUC) initiative on the employability of mature workers. Two colleagues who were on re-employment after retirement, Mr Lim Ah Kok and Mr Nadaison Pookays, were featured in an NTUC video presentation. SP’s initiative on employability of mature workers was also featured in Chinese daily Lianhe Zaobao, and on Channel 5’s news bulletin. Keeping In Touch, Engaging Our People An Employee Opinion Survey was conducted as part of our continuing efforts to engage our staff. Results of the survey and follow-up action plans were shared with the staff at the Management Annual Plan 2006. The year under review also saw the introduction of the Singapore Power ACE (Appreciation for Commitment and Excellence) Award. Aimed at motivating staff to continue to excel and strive for improvements, the award recognises SP staff who have displayed outstanding work performance, made significant contributions outside their scope of work, and exhibited exemplary conduct and work attitude. 62 Singapore Power Annual Report 2005 The Wellness Award was introduced during the year to reward employees who do not take any medical leave for a calendar year. Singapore HEALTH Award For the second consecutive year, SP clinched the Singapore HEALTH (Helping Employees Achieve Life-Time Health) Gold Award, which underscores our commitment in helping employees lead a healthy lifestyle. Left: Kick-off meeting for an Economic Value Cross-Functional Project Below: Engaging staff at our Management Annual Plan meeting The inaugural ACE Award winner was Mr Azhar Bin Mohamed Noor from PowerGas. The Merit Award winners were Mr Lawrence Lee Siew Ming from SP Services, Mr Jason Tan Chee Kean from SP PowerGrid (SPPG) and Mr Rosle Bin Gaus from HR&A Department. Reward for Performance The Economic Value Added (EVA)-based long-term incentive plan for executive staff in Singapore was introduced. To further encourage commitment to the performance of the company, staff in Singapore and Australia were given priority in the allocation of SP AusNet securities during its initial public offering. Singapore Power Annual Report 2005 63 Our People, Our Community Our performance appraisal system was also further refined to recognise important competencies, valued behavioural traits and subscription to corporate values. Right: Artist’s impression of Singapore Power Building’s new façade Below: A billiard room is one of several new facilities for staff to enjoy at our newly-opened recreation club. Creating Value During the year, a total of $12,295 was awarded to staff who contributed their ideas via the Value Creation Idea Award (VCIA) scheme. In all, 348 ideas to improve operations were accepted. An Economic Value Project (EVP) Workshop series was organised company-wide. Eleven cross-functional projects were identified at these workshops. Team leaders and members were selected to work on these projects, leveraging on synergies between the company’s value centres. 64 Singapore Power Annual Report 2005 Reaching out at a roadshow in Tampines Upgrading of Singapore Power Building Our headquarters in Singapore Power Building was renovated to enhance the working environment, and our offices integrated and clustered to streamline workflow and to facilitate staff communication and interaction. A new recreation club was built to provide facilities such as a gymnasium, sauna, and billiard and karaoke rooms. The recreation club was opened to staff in February 2006. The exterior of Singapore Power Building is currently being refurbished. The façade is being re-cladded, replacing the tiled finishes with matching aluminium panels. External windows are being replaced to enhance sound and thermal insulation for the building which also houses non-SP tenants. Our Community: Contributing to Society We pride ourselves as a socially responsible corporate citizen, contributing actively to society and the less fortunate in our midst. We have contributed to numerous charities in our efforts to enrich the quality of lives of thousands of needy children, the elderly, and people with disabilities. We have also donated to civic organisations and other causes that strive to make a positive change in society. During the year under review, SP launched the Singapore Power Heartware Fund, initially raising more than $1 million to help the needy elderly. In addition, we contributed over $385,000 in financial assistance to some 20 charities and associations, including the MILK Fund, Rainbow Centre and Asian Women’s Welfare Association Welfare Fund. SP staff also donated more than $50,000 as part of the Community Chest SHARE programme, with SP matching contributions dollar-for-dollar. Reaching Out Two roadshows, attracting more than 20,000 visitors, were organised as part of SP’s Public Outreach Programme to increase awareness of SP, its operations and the role it plays in the energy sector. The programme also included briefings to Members of Parliament, grassroots leaders and the media. National Day In support of nation building, SP made a record contribution of $250,000 to the celebration of Singapore’s 40th birthday last year. The sponsorship placed SP as one of the top-tier sponsors of the National Day Celebrations. Singapore Power Annual Report 2005 65 Our People, Our Community SP AusNet supports environmental groups such as the Landcare and is committed to the environment. Victorian Energy Education and Training (VEET) Programme The VEET Programme forges links between industry, education providers and community leaders. The programme provides young people with a first-hand understanding of the energy industry, plus the opportunity of a job placement and a potential career. Contribution Towards the Nation In recognition of its outstanding support and contribution towards national defence, SP was accorded the Minister for Defence Award 2005 and the Ministry of Home Affairs Award for National Servicemen’s Employers 2005. The Minister for Defence Award is the highest accolade for employers accorded by the Ministry of Defence. SP was one of 21 employers who received the award in 2005. Community Development Fund The Community Development Fund was developed by SP AusNet to contribute positively to the long-term growth and development of Australia’s Victorian communities. The Fund demonstrates that SP AusNet does more than deliver safe and reliable energy to over a million customers across Victoria. SP AusNet launched the fund in South Gippsland Shire in FY2005. Two projects are being undertaken in this area with the help of the Fund. REACH Foundation Regional Workshops SP AusNet sponsors the REACH Foundation to run school-based workshops in key regional towns. The workshops empower young people with life skills and raise questions that stimulate positive and critical thinking. Landcare Sponsorship SP AusNet has maintained a long and mutuallybeneficial relationship with Landcare Victoria since 1999. Over this period, SP AusNet has targeted funding to preserve and improve the native landscape; develop and maintain suitable native vegetation near easements; and educate landowners on selecting and managing vegetation near powerlines. The Landcare programme provides the basis of a working partnership between the community, government and industry. As part of its commitment to the environment, SP AusNet also encourages its security holders to register to receive their security holder notices and annual report electronically through the eTree programme. For each investor who signs up, SP AusNet donates A$2 to Landcare Australia to fund the planting of indigenous trees in the community. 66 Singapore Power Annual Report 2005 Designed and produced Singapore by Key Power Communications Annual Report Pte 2005 Ltd 67 Singapore Power Limited 111 Somerset Road #10-01 Singapore Power Building Singapore 238164 Tel: (65) 6823 8888 Fax: (65) 6823 8188 www.singaporepower.com.sg 68 Singapore Power Annual Report 2005

OPSTORIES | 5 b- se ss- RT dy taprn- lco m n- to ho ed in usof his ecn- st to osits usmed ntof pt we ey on ep id acect al of at ce. ice m ice a TOPSTORIES The Business Times | Thursday, April 13, 2017 M1 GE sees opens small cell networks S’pore as alternative to costly spectrum Telco says it’s leader in deploying devices in crowded environments to supplement mobile network signals IT resources and support centre By Amit Roy Choudhury F1. We observed that they were able to absorb the spike in traffic during these amit@sph.com.sg @AmitRoyCBT events.” Singapore Ms Kooi added that M1 was progressively deploying small cells in the MRT-LRT M1 is banking on smart utilisation of its existing spectrum and new technology, like network and at the moment had already “small cell” networks – which are already covered more than 80 per cent of the stations, major bus interchanges, big shop- being deployed in public spaces like MRT stations – to provide the best possible quality of service to its customers. ment buildings. ping malls and public places in govern- Last week’s telecommunication spectrum auction surprised the market by be- was looking to “re-farm” existing spectrum The M1 CEO also noted that the telco coming the most expensive such auction that is now being used to provide third generation mobile telephony (3G) services to in By history for Andrea Singapore. M1, and Soh the other three telcos, Singapore Telecommunications (Singtel), StarHub, Australian are yet to migrate to 4G. around 20 per cent of its customers who sandrea@sph.com.sg company TPG Telecom, which will start The reason the telco hasn’t yet started services by September next year, collectively @AndreaSohBT committed to paying S$1.14 billion the process of migrating its existing 2G cus- the “re-farming” exercise is because it is in for the 175 MHz (megahertz) of spectrum tomers to 3G since the discontinuation of that was on offer. During the last major 2G Singapore. “We will watch how this spectrum auction exercise in 2013, the regulator raised a total of S$360 million for trum for 4G.” goes before we start to re-farm the 3G spec- the AMERICAN 4G auction. conglomerate General Electric on Wednesday Ms Kooi, however, added: “We do encourage people to upgrade but not just There has been a market perception that, in comparison to to Singtel and Starfrom the spectrum perspective but also to opened an Asia Digital Operations Centre (A-DOC) in Singapore in its as bidding. part M1 committed of a commitment to develop digital industrial Hub, M1, which had a 23.7 per cent market enhance the service experience.” To a question with regards to the possibility of a price war once TPG starts its share as on December 31, 2016, was less aggressive services, Ms Kooi said: “We are very customer focussed and we like to give custom- S$208 million for 30 Mhz of spectrum while capabilities StarHub’s commitment was in S$349.6 the city-state. ers what they want and so we have evolved million for 60 Mhz and Singtel’s S$563.7 from a voice-centric network to a data-centric network. million for 75 MHz of spectrum. TPG Telecom spent Underlining S$23.8 million for 10 MHz of the new thrust in Singapore, it also signed spectrum. The telcos will pay for the spectrum as and when they become available areas where there is high data usage and we can put small cells networks there.” large data plans is at one level to pre-empt Ms Kooi: “Today we have a lot of traffic statistics ... which tells us which are the “So all these recent introduction of partnership agreements with grid operator SP Group, the fourth telco but more importantly we in different lots and bandwidths. want to give the customers what they In an interview with The Business Times, size of a A4 sheet of paper, are set up trum lots (20Mhz) of the 700Mhz spectrum, Institute while StarHub picked up of three Manage- lots that we value them and we want to keep want. We want them to know very early on Karen Spring Kooi, M1’s CEO, Singapore said the telco’s bidding strategy was very considered as it felt ment the mobile network signals. This al- and Singtel four lots. One of the main pur- them.” within and crowded environments Singapore to supple- that ment’s it had alternatives entrepreneurship to costly spectrum lows for signal boost for centre a high quality connection, even if the signal strength from is to allow the telcos to provide better qual- she was not in a position to discuss the ac- Platform poses of the 700 MHz E. spectrum allocation In response to a question, Ms Kooi said when it came to providing quality coverage and service to its customers. the nearest telecom tower is weak. ity indoor coverage. tual strategy that M1 will adopt to protect “We knew The we had group’s an effective alternat-A-DOive (to costly spectrum) as we are the alternative to acquiring an extra 700Mhz traffic statistics complemented by our ana- strategy close to our chests at this point of She said “densification” is the was an first effective such Ms Kooi said: centre “Today we have in a Asia, lot of and market share, “I want to keep the actual largest is HetNet part (heterogenous of a network) larger operator at the moment. We are way ahead of us less than S$50 million (to develop an ef- areas where there is high data usage and She, however added: “Having said that spectrum strategy lot. “We estimate by that it will the cost lysis company platforms which tell us to which transform are the time”. the others in terms of ‘densification’ and fective islandwide small cell network) and we can put small cells networks there.” we do not believe in competing on price. laying how the foundation IT is for a delivered future 5G network.” gone after the third pair of 700Mhz spec- rode on 1800 MHz and 2.6 GHz (giga and quality. We believe we are a premium we don’t across have to spend any the more. If group. we had She added that M1’s small cells network We always competed on customer service By “densification” The Ms centre, Kooi was referring which trum it would helps have pushed provide up the price hertz) round-the-clock spectrum which M1 already owns. service IT provider re- and as a premium service to what is known as small cells network in way above the S$92 million for each lot.” “We have also used small cells outdoors provider we will be able to command a which devices or antennas, around the During the auction, M1 picked up two spec- during the New Year’s Day countdown and premium on our prices.” sources and support for GE, will house about 60 employees initially, with the potential to expand software jobs US three-fold firms have over US$1.6t the next in five tax years. havens: Oxfam GE opens S’pore IT resources and support centre By Andrea Soh sandrea@sph.com.sg @AndreaSohBT Source: The Business Times © Singapore Press Holdings Limited. Permission required for reproduction. Singapore AMERICAN conglomerate General Electric on Wednesday opened an Asia Digital Operations Centre (A-DOC) in Singapore as part of a commitment to develop digital industrial capabilities in the city-state. Underlining the new thrust in Singapore, it also signed partnership agreements with grid operator SP Group, Spring Singapore and Singapore Institute of Management’s entrepreneurship centre Platform E. The group’s A-DOC is the first such centre in Asia, and is part of a larger strategy by the company to transform how IT is delivered across the group. The centre, which helps provide round-the-clock IT resources and support for GE, will house about 60 employees initially, with the potential to expand software jobs three-fold over the next five years. Separately, GE has also teamed up with SP Group, formerly known as Singapore Power, to develop capabilities in Industrial Internet of Things and intelligent applications so as to enhance the reliability and efficiency of the power network in Singapore. Specifically, engineering and digital experts from both companies will work to create a digital replica of the Singapore grid, known as a “digital twin”, which will enhance the performance of the network and reduce unplanned downtime. Having a digital twin of the network is akin to providing the doctor with health data every minute instead of going for a medical check-up once a month, SP chief digital officer Samuel Tan explained. With the real-time data, abnormal activity can be picked up more quickly, allowing for predictive maintenance that reduces costs, he told The Business Times. Data about the performance of the grid can also be compared with those from other grids around the world, allowing SP to enhance the grid’s performance further, he said, adding that these could potentially result in lower costs. SP is the first utility to work with GE on a digital twin; results from the partnership can be expected within 12-18 months, Mr Tan said. GE is also collaborating with Spring Singapore to develop a startup incubation and acceleration programme to promote ideas and solutions in Industrial IoT technology. These include agile programming, machine learning and algorithms for asset performance management, and cybersecurity. Similarly, it plans to establish a co-working space with Platform E to incubate Industrial IoT startups in Singapore and the region. “The Industrial Internet represents a multi-billion dollar opportunity for industry,” said GE chairman and CEO Jeff Immelt in a statement. “We look forward to working with our partners in Singapore to build a digital ecosystem and support entrepreneurship in the country.” Washington ues every year,” Oxfam senior adviser holders at the expense of important Separately, THE 50 largest US companies, including Apple, Microsoft and Wal-Mart, Apple is at the top of the ranking And the drastic reduction in cor- Singapore Shipping Forum 2017 Robbie GE Silverman has said. also teamed anti-poverty programmes. up with SP Group, are formerly parking about US$1.6 known trillion in with as more than Singapore US$200 billion offshore funds, followed closely by Pfstructive race to the bottom that has The Future of Shipping: Game Changers Power, porate income tax to will “feed develop into a de- capabilities in offshore tax havens to reduce their US tax burden, according to a study izer laboratories (US$193.6 billion) seen countries across the globe slash- published on Wednesday. Industrial and Internet Microsoft’s IT group of (US$124 Things bil- corporate and tax rates intelligent recent applications America said so the sum as for to 2015 enhance companies to keep profits the from reliability for- Meanwhile, “repatriation and efficiency holidays of the 27 April 2017, Thursday, 12pm to 3.30pm Poverty-fighting organization Oxfalion), the report said. US law allows years,” the report said. was a US$200 billion increase over eign operations offshore indefinitely, reward companies for keeping (Registration starts at 11am, includes lunch and networking cocktail) the prior year. The report cites the to avoid corporate taxes that are money offshore and avoiding their companies’ power own data. network among in the Singapore. highest the industrialized world. While the corporate tax move their profits to tax havens in ex- 10 Bayfront Avenue, Singapore 018956 taxes” and “incentivizes companies to Level 4, Orchid Room, Marina Bay Sands Expo & Convention Centre While not illegal, the companies “used a secretive Specifically, network of 1,751 rate engineering is nominally 35 per cent at the and pectation digital that they will experts eventually benefit from a one-time tax cut.” unprepared. A wave of game changers is upon the industry, disrupting maritime operations, technology, environmental from The maritime both industry sails at the edge of a disruptive storm that threatens to up-end the industry and engulf the subsidiaries in tax havens to stash” federal level, Oxfam said these 50 their earnings outside the US, Oxfam companies had an effective rate “President Trump promised to fix regulatory compliance and financing, even as the industry weathers a prolonged downturn since 2008. In the shipping said companies in the report released ahead will of nearly work 10 percentage to points create lower. a the digital rigged political and replica economic system yet his tax reforms will further en- this backdrop, we are pleased to present the Singapore Shipping Forum 2017, organised jointly by Moore Stephens LLP and of the Singapore grid, known as a “digital twin”, which will enhance industry today, astute recognition of opportunities and uncompromising cost effectiveness are absolute necessities. Against next week’s meetings of the International Monetary Fund and World Bank Donald Trump proposed cutting the rich powerful corporates at the ex- During his campaign, US President BNP Paribas, where we invite specialists and key players to share views on how maritime industry participants could best in Washington. rate to 15 per cent, and allowing companies to repatriate their cash re- businesses,” Mr Silverman said. “The pense of ordinary people and small respond to and capitalise on opportunities. “Tax avoidance has become standard the business performance practice across the serves with of a one-time the tax network of 10 per President and leaders reduce in Congress unplanned Topics covered: Who should attend? • Sailing in Turbulent Waters − Quo Vadis? CEO, CFO, COOs & Senior Professionals globe. Corporate tax dodgers cheat cent. Oxfam criticized both proposals, saying the tax cut would help prof- a tax system that works for everyone must rethink their reforms and build • The Future of the Baltic Exchange under Singapore Leadership of the Shipping Industry. America out of approximately downtime. • Impact of Shipping Regulations and Regulatory Costs US$135 billion in unpaid tax revenitable companies and wealthy share- and not just a fortunate few.” AFP By invitation only. • Panel: Ship Finance − The Shift from West to East For more information, please contact • Panel Discussion Ms. Victoria Lee at shipping@ Having a digital twin of the network is akin to provid- moorestephens.com.sg Rotorcraft ing the doctor Asia with gives health peek into data future every tech minute instead of going Nisha Ramchandani for a medical check-up once Asia will a feature month, commercial and SP de- chief digital By nishar@sph.com.sg fence applications and new solutions @Nisha_BT officer Samuel Singapore Tan explained. in With aerial, ground, the surface real-time and underwater unmanned systems. It will data, abnormal from activity the Asia-Pa- can be picked ers, up service more providers, buyers, quickly, aca- allowing Chairman Guest of Honour: AMID robust demand for new bring together manufacturers, suppli- Mr. Esben Poulsson build-helicopters International Chamber cific, the upcoming Rotorcraft Asia demia as well as government officials of Shipping President 2017 event will focus on new technologies and solutions for rotary wing Association Both events will have a VIP Buyers and regulatory bodies. Singapore Shipping for predictive maintenance that reduces costs, he told The aircraft. Programme, which will serve as a platform for exhibitors to meet buyers Business Rotorcraft Asia, which Times. is co-located with Unmanned Systems Asia, via pre-arranged meetings; VIP buyers attending include senior repres- will be held from April 18 to 20 at the Mr Leck of Experia Events says the Changi Exhibition Data Centre. about the performance entatives of the from the grid industry and can from also be compared “Innovation with in Rotorcraft” those is from other grids nam’s Ministry around of Public Security the and world, allow- rotorcraft market will continue A two-day strategic conference growing for the next 10 years. government bodies such as Viet- themed being held as part of the rotorcraft the Indonesian National Police. for Bell Helicopter and Pascal Mr. Julian Bray event where industry experts and This comes as the Asia-Pacific market will account 37 cent further, of he said, Editor-in-Chief Dauriac, research and technology director for Safran Helicopter Engines. TradeWinds business ing heads SP will to come enhance together to the grid’s performance share insights on pertinent issues 10,375 civil helicopters to be delivered by 2025, and challenges faced by manufacturers and operators of rotorcraft. Over the three days, over 4,000 adding that these trade visitors could from more potentially than 40 result making it the in biggest lower costs. driver of demand by region. “That One topic that will be discussed is countries are expected attend the really tells you the market is growing data analysis, SP and is its uses the in predictive maintenance. For instance, span a floor area of 5,000 square first two inaugural utility exbitions, to which work will and with will continue GE to grow on in the next a digital twin; 10 years,” said Mr Leck. sensors installed in components can metres. Companies will include international partnership and local heavyweights such can be expected within 12-18 The global unmanned aircraft systems market is expected to be worth results from the transmit data in real-time, allowing rotorcraft operators to predict when as Lockheed Martin and Singapore US$10.9 billion by 2021, while Asia Pacific’s commercial drone market is maintenance months, should be scheduled. Mr Tan Technologies said. Engineering. Smart data and big data can be useful tools especially as customers panies from the entire rotorcraft sup- A University R&D showcase will Other sponsors: Rotorcraft Asia will showcase com- projected to grow to US$650 million. grow more GE demanding, is also highlighted collaborating ply chain, from airframes, components and parts, to avionics, safety systions for unmanned systems and with also highlight Spring solutions and Singapore applica- to develop Experia a Events. startup Speakers at tems incubation and maintenance, repair and drone acceleration technology which have been programme Media Partner: to Leck Chet Lam, managing director of organiser the conference will include Jean-Brice overhaul (MRO). There will also be developed by local universities and Dumont, executive vice-president of helicopter mock-ups, as well as real tertiary institutions. Some of these applications Industrial are being used as IoT part of technology. Airbus promote Helicopters; J Scott ideas Drennan, helicopters and solutions on display. in director of engineering innovation Meanwhile, Unmanned Systems Singapore’s Smart Nation initiatives. These include agile programming, machine learning and algorithms for asset performance management, and cybersecurity. Similarly, it plans to establish a co-working space with Platform E to incubate Industrial IoT startups in Singapore and the region. “The Industrial Internet represents a multi-billion dollar opportunity for industry,” said GE chairman and CEO Jeff Immelt in a statement. “We look forward to working with our partners in Singapore to build a digital ecosystem and support entrepreneurship in the country.” Mr. Mick Aw Senior Partner Moore Stephens LLP Singapore Mr. Matthew Forrest Director, Transportation Sector, Investment BNP Paribas Singapore Mr. Logan Chong Managing Director BNP Paribas Hong Kong Mr. Steve Saxon Expert Partner - Shipping McKinsey and Company Mr. John d'Ancona Divisional Director - Dry Bulk Analysts Clarksons Asia | 5 Speakers Panelists Mr. Yang Chang Kun Managing DIrector Shipping ICBC Financial Leasing Mr. Mark Jackson Baltic Exchange Mr. Dimitris Belbas Managing Director EMS Partners Held in conjunction with: Mr. Jerry Yang Head of Shipping Minsheng Financial Leasing Co., Ltd Mr. Peter Hinchliffe Secretary-General International Chamber of Shipping Mr. Chris Johnson Partner Moore Stephens LLP Singapore Supported by: Mr. Terrence Tan Director, Transportation Sector, Investment BNP Paribas Singapore Mr. Tony Zhao General Manager & Head of Financial Market Department CMB Financial Leasing

ty is a tariff imrts believed to rket value. sed on prelimanti-dumping se authorities 7. ommerce said three regions d butyl rubber priate prices, ic industry. rubber, also tain air pressure without the need for tubes. A spokesman from Singapore’s Ministry of Trade and Industry (MTI) said the government is following developments closely and engaging with Chinese authorities as well as affected companies. Stakeholders can submit written representations to the Chinese authorities within 10 days of the announcement. S$1.20 A SINGAPORE PRESS HOLDINGS PUBLICATION | businesstimes.com.sg | fb.com/thebusinesstimes | @BusinessTimes | CO REGN NO 198402868E | MCI (P) 051/12/2017 Friday, April 20, 2018 China’s Ministry of Commerce will The rubber duties could hit global firms operating synthetic rubber facilities in Singapore. German petrochemical giant Lanxess opened a 400 million euro butyl rubber plant on Jurong Island in 2013. The 150,000 sq m plant was the largest investment in the company’s history, and its first venture in Singapore. Meanwhile, ExxonMobil has been building a new halobutyl rubber facility at its petrochemical complex on num. An ExxonMobil spokesman said the group is “carefully studying the preliminary findings and will continue our cooperation with the relevant authorities”. “ExxonMobil and its affiliates are committed to operating ethically, responsibly and in full compliance with the laws, rules and regulations of all countries that are applicable to the business,” the spokesman added. Lanxess did not respond to queries by press time. Most analysts believe the two sides will eventually reach a compromise and avoid a full-blown trade war. Earlier this week, the US banned American companies from selling parts to Chinese telecom equipment maker ZTE for seven years, while China on Tuesday announced hefty anti-dumping tariffs on imports of US sorghum. China’s Ministry of Commerce said in a statement that local businesses were “substantially damaged” by American sorghum imports. RIVERSIDE GEM Kampong Bugis master developer Sembawang Shopping tender to Land be launched Mall Trust in 1-2 years REAL ESTATE / 17 REJUVENATING SEMBAWANG Lian Beng JV buys Sembawang Shopping Centre for S$248m TOP STORIES / 2 STRONGER REVENUES Keppel Corp Q1 profit leaps 34% buoyed by property division COMPANIES & MARKETS / 6 ELECTRIC DREAMS Tesla charges into Singapore MOTORING / 30 MARKETS STI KL COMP NIKKEI 225 HANG SENG SHENZHEN B DOW (11.00 EDT) Thursday 3,598.73 1,895.18 22,191.18 30,708.44 1,110.68 24,709.41 Change +40.91 +15.86 +32.98 +424.19 +0.50 -38.66 S$126 million erty as at last was commisarried out by capitalisation nted-cashflow , on the other arket-compart its bid price market condiarket prices of ty. works out to ) for the mall, r area (GFA) of y its total net 143,631 sq ft, . ive chairman usiness Times ring that Sem- Centre is a property, we e price in per onable.” than 99 per er’s purchase s ilies st year, Council to mote skills orkforce. eir business d, DBS Bank nion leaders ill sets worke bank transtal age. meet every to “focus the TUC labour g, from the ing body in ittee, all the n promoting grading for n said the orxpanded the fforts in the inue to do so o Minister in ice, declined menting on o a new role ffle, which is nced in the nt the labour e to carry out e were to be he upcoming was made for property-investment tail units and three carpark levels purpose or for recurring rental collection, ❚❚ DAILY he said. Lian Beng described the proposed with 165 parking spaces. Separately, DIGEST Terence Tang, managing director of capital markets and investment The worst of US-China services trade of Colliers International (Asia) noted that, based on vestments. tensions appears to be over as both sides ramp up the negotiations, current says income JP Morgan from the mall, the A deposit of S$24.8 million, or 10 Asset Management in its Four known parties are currently wooing India’s second-largest hospital chain as it struggles with cash flow and rising debt purchase price of S$248 million per cent of the purchase consideration, has been paid by LBAS; the bal- market outlook, but volatility would work out to a net income in equity markets will be By Janice yield Heng price not exceeding 160 rupees per Fortis – India’s second-largest hospital chain with about 30 hospitals – said they would meet on Thursday to On Monday, the board of Fortis (gross affected by revenue headline “noise” less operating janiceh@sph.com.sg expenses) of 4.2 per cent. ance will be share. paid on or around June @JaniceHengBT and continued quantitative The statement did not say what has been struggling with insufficient consider all options. In a regulatory 18, upon completion of the acquisition. Singapore stake a 40-billion rupee investment cash and increased debt, with regulators also investigating allegations that had also received a letter from filing late on Tuesday, Fortis said it tightening. TOP STORIES / 4 In July last year, Lian AS Beng more suitors and join in the pursuit of would buy and how the potential investment said its will proportionate be funded. But based its founders took funds without Chinese conglomerate Fosun Interna- India’s Fortis Healthcare, Lian Singapore-listed IHH Healthcare is doub- Fortis’s 514.7 million shares as at board approval. The founders deny tional offering to invest up to US$350 Beng Apricot Noble Group will Capital drop a had acquired purchase consideration of S$124 million mixed-used provision from its commercial and ling down residential building Wilkie Edge near Little In- with a dowry offer of up to end-March and a share price of 160 rupees, a 40-billion through rupee bank investment bor- The IHH 999-year has a market cap leasehold of S$16.8 bil-Sembawang share, in return for Shopping less than a quarter Centre has four floors of wrongdoing. million, or 156 rupees per Fortis restructuring proposal that 40 billion rupees (S$796 million) will for be a funded has drawn criticism for stake in the Indian hospital chain. would mean a 48.2 per cent stake in lion, and reported a net profit of of the firm. rowings or internal resources. attempting to treat Should the offer materialise and Fortis. RM101.3 retail units million (S$34.18 and three million) carpark in And levels yesterday, with Fortis 165 said it had parking received an improved PHOTO: binding CAPITALAND offer GROUP spaces. It is now dia for S$280 million from Capita- In a filing to the Singapore bourse the more quarter than ended 99 Dec per 31. cent occupied. shareholders differently get accepted, it could be one of the IHH, which is also listed in Malaysia, CMT said: “The said infusion the is divest- intended to Land Commercial Trust. That price Fortis has a market cap of 77 billion rupees, and reported a net loss of worth 15 billion rupees from Hero Enterprise Investment Office and Bur- depending on how they vote. biggest equity transactions Thursday, abroad by worked out to S$1,299 psf a Singapore-listed based on firm. fund the buyout of the assets from COMPANIES & MARKETS / 6 ment is expected to generate net proceeds by the board of about of immediate S$245.6 liquidity million, towards and working a 191 million rupees for the quarter man Family Office, up from the Indian consortium’s previous offer of GFA, and S$1,812 psf based IHH’s on latest the move came ahead of RHT Health Trust as well as provide Looking ahead, Colliers International’s Mr Tang said he believes the e-commerce on the local retail market he said. Additionally, the impact of ended Dec 31. yesterday’s meeting United Overseas Bank has Last week, IHH was reported to 12.5 billion rupees. The consortium’s building’s NLA. Fortis to consider its net options gain amid of about capital S$119.6 and infrastructure million. upgrades.” have offered to buy Fortis at a price proposal is to invest 5 billion rupees appointed Wee Ee Lim, 56, Among other terms of bids sale, by various Sem-partiesbawang non-executive Shopping director, from Centre India-listed Fortis is the sponsor retail valuing the market chain at in about Singapore US$1.3 billion (S$1.7 billion), higher than the and 10 billion rupees through the is- has via preferential “stabilised, with long-term recovery within is limited as consumers still visit issue of equity shares as a non-independent, Tony Tan, In a regulatory filing yesterday, of chief the mainboard-listed executive of RHT CMT Health the Malaysian is being shopping centres for “retail therapy healthcare Management, firm said it Trust. said: In February, “As the RHT’s mall trustee-manager had signed a S$950 million deal accounts for only about one per cent of roughly US$1.2 billion valuation offer sue of warrants. or experiential shopping”, he added. sold July 1. subject Mr Wee is to the existing son of tenancies “issued a strictly and non-binding letter sight”. made by Fortis’ Unlike Indian other rival markets, Manipal where Interestingly, it IHH was engaged UOB chairman emeritus Wee “to the Fortis board on Wednesday, expressing for Fortis to buy the trust’s entire portfolio. value, its sale will is easy to convert non-retail land us- Shares in Lian Beng last traded 0.8 Health Enterprises. a takeover battle with Fortis in 2010, licences. Major tenants at Cho Yaw and the brother of the mall its readiness include CEO Wee Giant, Ee Cheong. Yamaha Music 40 billion School, rupees through CMT’s to inject total up asset But Fortis had initially declined to when both parties sought per cent control higher for to close at S$0.635 have a preferential allotment of equity shares at a knowledged receipt of the letter. talks with Manipal. Asia’s biggest healthcare operator. pees. minimal impact IHH said the on Fortis CMT’s board financial performance and distribution per ited supply of retail assets in Singa- traded 0.5 per cent higher to close at has acage consider into other retail options centres, while it was there in Singapore’s is a lim- Parkway Holdings, then apiece on Thursday; units in CMT Food COMPANIES Junction & MARKETS and / 10Daiso Japan. The building has four floors of re- unit.” pore, due in part to the Master Plan, S$2.12 per unit. Top investment picks By Genevieve Cua US$1 million in investable assets (excluding property). The markets in- Queen Elizabeth II hopes for gen@sph.com.sg Sweden’s move to become Singapore cluded Germany, Hong Kong, the US the world’s first cashless and UAE. In Singapore, 400 individu- competing with private banks. BANKING & FINANCE / 16 She wishes Prince Charles will carry on the work her father began in 1949 Oil futures jumped nearly 3 per cent on Wednesday on a decline in US crude stocks and after sources said top exporter Saudi Arabia wants to see the crude price closer to US$100 a barrel. ENERGY & COMMODITIES / 20 QUEEN ELIZABETH II on Thursday expressed Gene-editing hope technologies that her son Prince that alter mosquitoes’ DNA Charles would carry on the important against work malaria, of says reinvigorating Bill the Com- could prove critical in the fight monwealth, Gates, and ethical as concerns she opened the Commonwealth should not block progress Heads in of Government such gene-modifying Meeting (CHOGM) in London. research. TECHNOLOGY / 21 She received long and loud applause from the leaders of the 53 Commonwealth countries in a demonstration of their gratitude for her service to the network she has Artificial intelligence and robotics are fast becoming part of the tools of war, an evolution that will redraw the battle lines and form new businesses for the defence sector. This Saturday, our Brunch feature in The Business Times Weekend sets out some of the emerging technologies and concepts that will change the future of warfare. In The Raffles Conversation, HP Inc CEO Dion Weisler tells how Silicon Valley has reinvented itself. Looking Speaking at bank before airline the stocks? Queen, CFA Singapore Prince Insights in the Investing & Wealth section this weekend spells out the fundamentals that have impact on the banking sector. The Fool’s Eye View meanwhile checks out airlines and whether Warren Buffet’s recently placed faith in them is justified. Also in the paper this Saturday, BT talks to fashion designer The Stella Prince McCartney, of Wales who has added gone where that few he designers do and bought back full control of her brand from luxury giant Kering. What do Hurricane Irma and Siri have in common? There’s no skirting the issue – personification of objects or phenomena is often coloured by an unmistakable gender bias, says Sass & The City. Gearhead reviews Dell’s latest ultrabook, the XPS 13, and finds that despite several shortcomings, it’s IHH ups ante in Fortis courtship acquisition as a “strategic investment”, with 40-billion in line with one of the group’s rupee stake offer core business activities in property in- Even millionaires have cost worries if they live to a 100 CLOSE to half of Singapore’s millionaires expect to live to 100, society reinvigoration has raised concerns of and this is the als were polled Commonwealth between December health is more important than growing their wealth. the central bank. Plus, an driving significant changes to their 2017 and April 2018. electronic currency risks spending, investing and legacy beha- Singapore’s average life expect- The average wealthy Singaporean viour, a study by UBS has found. UBS Investor Watch Research has found that 46 per cent of those polled in Singapore expect to live to 100, compared to 53 per cent globally. The expectation of a long life is creating anxiety, however, as 42 per cent worry that their wealth will not support them till age 100. Of these, 66 per cent worry about the rising costs of healthcare, Londonand 63 per cent worry about whether they can afford their current lifestyle in retirement. In Asia, 45 per cent worry about their wealth lasting till 100, compared to 21 per cent in Europe. Investment behaviour is expected to shift as 45 per cent plan to adjust their long term financial plans and 46 per cent their spending patterns. The research surveyed 5,000 millionaires in 10 markets, with at least you to my own home.” The future of warfare in BT Weekend headed since 1952. Succession to her role in the Commonwealth, which is not hereditary, is said to be one of the topics for discussion at this year’s biennial gathering, which is expected to be the last the monarch will attend. At 92, she has cut down on long-haul travels. Charles, 69, described the Commonwealth as a fundamental feature of his life for as long as he could remember, starting with his first visit to Malta when he was five years old. had been fortunate over the years to meet and talk with “so many giants of the Commonwealth” including Singapore’s founding prime minister Lee Kuan Yew, the father of Prime Minister Lee Hsien Loong. Continued from Page 1 How it would eventually earn revenue through the platform is yet to be determined, said chief executive Wong Kim Yin. While the platform is targeted at companies, SP does not rule out having individuals as buyers, which would effectively enable peer-to-peer energy trading. With the platform transacting only RECs and not energy itself, it will not need the prior approval of energy regulator Energy Market Authority, SP said. The platform would also be an international one, as the blockchain infrastructure enables transactions to ancy, based on World Health Organisation data last year, was 83.1 years, compared to 83.4 in Switzerland and Britain is hosting the summit for the fourth time. The famed April showers gave London a miss as the leaders, including Mr Lee, arrived at Buckingham Palace. A guard of honour, regimental band and flag bearers welcomed them as they streamed into the ballroom in their formal suits and colourful national costumes. The Queen, dressed in a turquoise ensemble, arrived at 10.10am and in her welcome address, said: “Having on so many occasions been welcomed to the opening ceremonies around the Commonwealth, it is a pleasure this time to welcome 83.7 years in Japan. Hartmut Issel, UBS head of Asia Pacific equities and credit (chief investment office), said: “It it heartening to note that many Singaporeans already have a financial plan in place, and are adjusting their investment portfolios in preparation for a longer life span.’’ The silver lining is that almost 80 per cent have a financial plan in place. “If 80 per cent see the need to plan for the long term, it tells us that 20 per cent don’t hold that view strongly. We need to reach that 20 per cent as well to have a discussion on life expectancy. You need to think about how you invest and put a plan in place.’’ Singaporean millionaires believe It was in Buckingham Palace that the Commonwealth was formed in 1949, with just eight nations. Today, the network of nations with past links to the British Empire, ranging from giant India to the small Pacific nation of Nauru, represents 2.4 billion people. Queen Elizabeth said the advantages of the network were plain to see, with an increasing emphasis on trade between Commonwealth countries and joint initiatives bringing about change on a global scale. Expressing her preference for the first time, she said it was her sincere wish that the grouping would one day decide to have Prince Charles, her oldest child, “carry on the important work started by my father in 1949”. But she also said she was mindful that the Commonwealth draws its still one of the best-performing and best-looking laptops around. And in The Finish Line, an interview with Lagardere Sports vice-president of tennis Sarah Clements on this year’s fifth and final edition of the BNP Paribas WTA Finals Singapore tournament. To subscribe, visit bt.sg/subscribe take place across countries. “This marketplace is global immediately,” said Mr Wong. Solar adoption in Singapore is still low. Installed capacity was only 145 megawatts-peak as at the end of last September, compared to peak system demand of about 7,000 megawatts. But SP hopes the platform would be ready when solar energy takes off in the country. SP managing director of digital technology Chang Sau Sheong said: “It’s always a chicken-and-egg story. We want to use this to drive the adoption of solar.” A similar registry for REC was PM LEE IN LONDON being healthy is the top priority: 83 per cent worry that their health will deteriorate over the next 10 years and 92 per cent say investing in their would sacrifice around a third of their wealth today if that could guarantee another 10 years of healthy life. The majority (85 per cent) believe that activity and work have positive effects on health. In fact 68 per cent expect to work longer than the traditional retirement age to maintain their lifestyle. On legacy planning, 51 per cent plan to give more away while they are still alive. Over half plan to give more to their grandchildren than their children, believing that it will be more useful at their stage of life. On investments, Singapore’s high net worth individuals picked healthcare as their top choice for long term investment opportunities. Equities and real estate were also favoured, but so was cash, which was picked by 40 per cent of respondents. In Asia cash was favoured by 52 per cent. By Andrea Soh sandrea@sph.com.sg @AndreaSohBT Singapore POWER grid operator SP Group is tapping blockchain technology to link up residential and other small producers of solar energy with businesses that have a carbon footprint. The blockchain-enabled digital platform – expected to be a global first when launched by the end of this year – could speed up the use of solar panels and also offer a variation of carbon emissions trading. It would transform the local market that has until now been domin- leaders. ated by large producers and buyers of solar energy by also accelerate the adoption of solar photovoltaics (PV) in Singapore, said the Temasek-owned firm. The platform, developed by an in-house SP team, allows those with registered solar PV panels to display the amount of renewable energy they have produced in the form of renewable energy certificates (RECs). 50 40 30 20 10 80 60 40 20 Mr Lee was expected to speak on some of these issues at Thursday afternoon’s meetings for leaders and of- Companies or other organisations can purchase these to offset their carbon emissions. The platform enables buyers to filter listings by various criteria, including the amount of energy, originating country and asset type. RECs represent electricity produced using environmentally friendly processes. They are similar to the concept of carbon emissions trading, but measured in kilowatt hours instead of tonnes of avoided carbon. Companies with a mandate to use green power, but without the ability to invest in their own solar panels or other renewable energy sources, often buy RECs to offset their energy consumption. REC registries and can be trade. found in countries such as India, the US and Australia; these require independent certification parties to verify that the electricity represented by the RECs is green and that no double ficials. counting of environmental benefits has taken place. Fortis had initially bought TPG’s 23.9 per cent stake in Parkway for S$959 million. IHH (in its previous life as Integrated Healthcare Holdings) then followed suit with a S$1.18 billion partial offer to raise its stake in Parkway from 23.8 per cent to 51.5 per cent. Two general offers later, IHH ended the tussle with a S$3.5 billion price tag and delisted Parkway. It subsequently consolidated its hospital operations, largely in Singapore, Malaysia and Turkey, before launching a dual listing in Singapore and Malaysia in 2012. Today, the group runs healthcare facilities under the “Mount Elizabeth”, “Gleneagles”, “Pantai”, “Parkway” and “Acibadem” brands, and has more than 10,000 licensed beds in 50 hospitals across 10 countries. In Singapore, IHH shares gained 0.49 per cent to close at S$2.04 on Thursday. In India, Fortis shares gained 2.66 per cent to 148.45 ru- Which sectors offer the strongest investment opportunities for the very long-term (more than 30 years)? (%) Global Hong Kong Singapore Taiwan Healthcare Financials Real Estate IT Consumer staples Which asset classes offer the strongest investment opportunities for the very long-term (more than 30 years)? (%) Materials Global Hong Kong Singapore Taiwan Equities Real Estate Bonds Cash Alternatives Others SP Group to launch platform for home owners to sell solar energy certs mandate from the countries and its British Prime Minister Theresa May, the meeting’s host, thanked the Queen and the Royal Family for being the Commonwealth’s most steadfast and fervent champions and for nurturing the organisation. She urged launched by American environmental infrastructure solutions provider APX two years ago, with the Solar Energy Research Institute of Singapore as the third-party verification agency. APX did not respond to The Business Times’ queries on how well the registry has performed since then. The announcement by SP comes as activity picks up in Singapore’s solar sector, with generation companies such as Sembcorp Industries and Senoko Energy venturing into developing solar systems in the past two years, though the solar generation market is still dominated by solar developer Sunseap. Source: UBS SP’s platform will not require such verification because the blockchain system eliminates the possibility of fraud and double counting, said the firm. Furthermore, with the platform, buyers and sellers would no longer have to spend time and effort working out bilateral agreements for solar energy, as is the case in Singapore today. All of these combined means the platform would help users reduce their transaction and administrative costs in selling or buying solar energy, SP said. SP chief digital officer Samuel Tan, who was in Germany to present the platform at a energy-sector blockchain event, told reporters in a video conference: “By aggregating the masses, we hope that this will help the buyers to meet their sustainability goal.” SP plans to roll out the platform by the end of the year, and will make it free to use at the start. Continued on page 2 Prime Minister Lee Hsien Loong meeting Britain’s Prince Andrew in London on Wednesday, ahead of the official opening of CHOGM. This is the fourth time since 1949 that Britain is hosting the summit. PHOTO: MCI the leaders to work together to tackle some of the 21st century’s biggest issues, such as climate change and threats to a rule-based world order SP Group’s new platform for home owners to sell solar energy certs Sunseap and energy startup Sun Electric are among the pioneers in Singapore in separating the generation of solar power from its consumption. In November 2015, Sunseap signed a deal with Apple for the tech giant to receive power generated by solar-energy systems on the rooftops of other buildings, on top of that generated by its own. Sun Electric, which started operations in 2013 and currently has 2MW of solar capacity installed, connects organisations wishing to adopt renewable-energy options but which are hobbled by space constraints, with parties with excess rooftop space. Source: The Business Times © Singapore Press Holdings Limited. Permission required for reproduction.

SINGAPORE POWER ANNUAL REPORT 2014/15 POWERING OUR NATION 20/20 BUILDING OUR FUTURE The black & white photo featured on the cover was obtained from the Kouo Shang-wei Collection 郭 尚 慰 收 集 . All rights reserved, family of Kouo Shang-wei and National Library Board Singapore 2007. CONTENTS Financial Highlights 03 Chairman’s Message 06 Board Of Directors 10 Senior Management 14 Group Structure 15 Corporate Governance 18 Risk Management 21 Awards & Accolades 22 Building on Trust 26 Serving Up Power with a Smile 34 Power People 40 Powering with Heart 46 Safety First 50 Financial Summary 54 Pictured from top to bottom Picture 1 JONATHAN OOI WEI HSIN Director, Legal & Corp Secretariat MARY ELLAMAH ABISHAGAM Senior Admin Assistant, Metering Data Management Picture 2 YUSLANE BIN ISHAK Engineering Officer, Singapore District Cooling Picture 3 MUHAMMAD REDZUAN BIN SULAIMAN (STANDING) Engineer, Gas Operations THE SINGAPORE POWER GROUP Singapore Power (SP) Limited is a leading energy utility company in Asia Pacific. One of Singapore’s largest corporations, SP recorded revenues of S$4.8 billion and assets of S$15.6 billion in FY 14/15. SP owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia. It also owns and operates the world’s largest underground district cooling network in Singapore, and is setting up district cooling operations in China. More than 1.4 million industrial, commercial and residential customers in Singapore benefit from SP’s world-class transmission, distribution and market support services. The SP networks in Singapore are amongst the most reliable and cost-effective worldwide. In Australia, SP’s 40 per cent-owned SGSPAA, a diversified energy utility company, and 31.1 per cent-owned AusNet Services, which is publicly listed on the Australian and Singapore Stock Exchanges, collectively serve 3.8 million customers. OUR MISSION We provide reliable and efficient energy utility services to enhance the economy and the quality of life. OUR VALUES COMMITMENT • We commit to creating value for our customers, our people, and our shareholders. • We uphold the highest standards of service and performance. INTEGRITY • We act with honesty. • We practise the highest ethical standards. PASSION • We take pride and ownership in what we do. TEAMWORK • We support, respect and trust each other. • We continually learn, and share ideas and knowledge. From left to right TAN HUNG KHING Principal Engineer, Electricity Operations, SP PowerGrid DR LYNDA YAO DAILIN Executive Engineer, Asset Management, SP PowerGrid FINANCIAL HIGHLIGHTS REVENUE FROM CONTINUING OPERATIONS (S$million) TOTAL ASSETS (S$million) 6,000 5,000 4,000 4,942 4,840 4,793^ 40,000 30,000 34,456 3,000 2,000 1,000 20,000 10,000 16,980^ 15,635 0 0 FY2012/13 FY2013/14 FY2014/15 FY2012/13 FY2013/14 FY2014/15 NET PROFIT AFTER TAX (S$million) SHAREHOLDERS’ EQUITY (S$million) 1,000 800 991 10,000 922^ 878 * 8,000 8,464 9,221^ 8,528 600 6,000 400 4,000 200 2,000 0 0 FY2012/13 FY2013/14 FY2014/15 FY2012/13 FY2013/14 FY2014/15 ECONOMIC VALUE ADDED (EVA) (S$million) 400 RETURN ON EQUITY (%) 20 300 257 235 284 15 10.5 * 10.4^ 11.2 200 10 100 5 0 0 FY2012/13 FY2013/14 FY2014/15 FY2012/13 FY2013/14 FY2014/15 ^ Restated * Excludes exceptional items on impairment 03 THEN ENERGISED FOR GROWTH From lighting up kampongs to illuminating skyscrapers and powering high-tech industries, Singapore Power has grown alongside our nation, energising Singapore’s dynamic landscape, and transforming the way we live, work and play. SOURCE: THE STRAITS TIMES © SINGAPORE PRESS HOLDINGS LIMITED. PERMISSION REQUIRED FOR REPRODUCTION. NOW More than 1.4 million industrial, commercial and residential customers in Singapore count on Singapore Power for reliable power supply and efficient services. CHAIRMAN’S MESSAGE Currently, Singapore’s electricity and gas networks stand amongst the world’s best in terms of reliability and efficiency. As we celebrate our 50th National Day (SG50) and Singapore Power’s 20th anniversary, let us reflect on and acknowledge the achievements of this young nation and the contributions made by the company. It is an honour for us to contribute to the economic growth of Singapore and the quality of life that we enjoy. We have planned a number of initiatives for the community, led by our employees, centred on bringing the Gift of Power to Singapore. FINANCIAL PERFORMANCE For the financial year 2014/15, the Group’s net profit increased by 7.52 per cent to S$991 million, largely due to the strong operating performance of our transmission and distribution businesses. However, the increase was partially offset by the lower profit contribution from our associate companies in Australia, particularly AusNet Services, which made several tax-related provisions in the financial year. During the year, the company made a S$1 billion capital repayment to our shareholder and continued to invest in Singapore’s electricity and gas networks. INVESTING IN PEOPLE Currently, Singapore’s electricity and gas networks stand amongst the world’s best in terms of reliability and efficiency. At the core of our service is our focus on people – helping our employees achieve their highest potential, and ensuring that they work safely to deliver the quality and value expected by our customers and the community. In October 2014, we established the Singapore Institute of Power and Gas to support the training and development needs of the power and gas sector. All major power players in Singapore will be invited to provide input into developing the curriculum. In the future, the institute can expand to provide training to power sector employees from around the region. We awarded our second batch of SP Nithiah Nandan Polytechnic and ITE scholarships to 21 students. These scholarships will provide for the students education and a career with the company upon graduation. In developing the next generation of engineers, our EDGE (Engineering Development for Graduates) programme provides holistic, structured training and development for new graduates. Within the group, a development plan of continuous learning for all staff ensures that staff capabilities are enhanced and that their skill sets remain relevant in a rapidly evolving industry. RELIABILITY AND SERVICES The economy of Singapore and lifestyle of its people depend on 06 reliable energy supply. As such, employees must be vigilant and disciplined in operating and maintaining our networks. In terms of reliability and efficiency, Singapore consumers enjoy the fewest and shortest outages in the world. We are happy to report that last year, the average electricity customer experienced 0.34 minute of electricity interruption – a 54 per cent improvement over the previous year – while the average gas customer experienced 0.14 minute of interruption, an improvement of 76 per cent. In keeping up with the digital economy, we have taken steps towards making our services more accessible and convenient for our customers, who can now conduct utilities transactions via a mobile app at their convenience. Household customers are able to check their consumption of energy and water, and compare their usage against their neighbours’. Our goal is to help them manage their consumption more efficiently, and by doing so, save money and energy. Our newly-opened Customer Service Centre at Cross Street and our Service Centres at Woodlands and HDB Hub in Toa Payoh offer improved facilities, including selfservice kiosks. At the national level, we continue to play a significant role in the implementation of retail contestability, which provides flexibility to customers to choose the company they wish to buy their electricity from. We enhanced our back-end and IT systems and, as of 31 May this year, 45,000 smart meters have been installed. The smart meters relay energy use and pricing information to consumers and energy providers, and measure customers’ usage at half-hourly intervals. As testimony to our efforts to deliver service excellence, an independent customer satisfaction survey ranked SP Services as the best among Singapore’s major service providers. Customers also rated our staff as the most courteous, helpful and knowledgeable among the eight service providers included in the survey. In planning for the future and to enhance supply reliability, we recently completed the 230kV Upper Jurong substation to meet increasing demand and facilitate connections to customers and power generation companies. We reached a major milestone with the Singapore Power Cable Tunnel Project when our boring machines broke through in Paya Lebar and Rangoon in February 2015. This five-year project, scheduled for completion in 2018, is one our longest and largest infrastructural projects, and will Last year, the average electricity customer experienced 0.34 minute of electricity interruption – a 54 per cent improvement over the previous year – while the average gas customer experienced 0.14 minute of interruption, an improvement of 76 per cent ensure that Singapore continues to enjoy reliable power supply in the future. A PART OF SINGAPORE’S SUSTAINABILITY VISION Supporting the growth of new, environmentally friendly and sustainable power sources remains an important goal at Singapore Power. Singapore District Cooling (SDC) is the largest underground districtcooling network in the world. Offering a more efficient cooling system than conventional building cooling systems, SDC helps its customers in the Marina Bay district achieve significant energy savings. SDC recorded zero accident and supply disruptions for the second 07 CHAIRMAN’S MESSAGE consecutive year, a record for both reliability and quality of supply that we are proud of. During the year, we acquired the remaining 40 per cent of SDC. As a fully-owned subsidiary, SDC will be able to leverage our extensive technical and commercial networks, and strong and diverse bench strength to pursue new opportunities in and outside the country. In May 2015, SDC signed an agreement with CapitaLand Limited (CapitaLand) to provide district cooling for the Raffles City Chongqing in China. We will design, During the year, our safety performance improved by 50 per cent compared to the previous year, as measured by the Lost Time Injury Frequency Rate (LTIFR) build, own and operate an advanced energy-efficient cooling system for the development. In the renewable energy sector, we continue to support solar energy. We have reduced the processing time for PV integration into Singapore’s grid from 27 days to seven days and established a PV registry to ensure grid stability. We continue to assist small PV users in selling excess power to the national grid by removing the need for them to register with the Energy Market Company. In October 2014, we partnered with the Energy Market Authority to launch “Energy Heroes: It’s Your Power”, an energy efficiency campaign for school children. The campaign educates students on energy conservation in a fun and interactive way. We believe that by engaging with our younger consumers, we will create an “energy-aware” population for the future. The Singapore Power Centre of Excellence (CoE) for Energy Development and Piloting was launched during the year. The CoE will drive the innovation and commercialisation of nextgeneration energy network technologies as we work towards greater reliability and efficiency of Singapore’s infrastructure. Supported by the Singapore Economic Development Board (EDB), the CoE will develop, test and integrate cutting-edge technologies such as remote sensors and intelligent drones into Singapore’s infrastructure networks. SAFETY CHAMPION The safety of our employees, contractors and customers is of utmost importance to us, and we will continue to improve our performance in this area. During the year, our safety performance improved by 50 per cent compared to the previous year, as measured by the Lost Time Injury Frequency Rate (LTIFR). Over the course of FY 14/15, we introduced various new safety initiatives including the Vehicle and Driving Safety Programme, and took steps to enhance the safety of our contractors as well. The Safety@SPPG (SP PowerGrid) programme, for example, is aimed at helping all workers on our sites learn how to perform common tasks safely. SP PowerGrid formed four safety committees to monitor various aspects of workplace safety. In recognition of our efforts, SP PowerGrid received the bizSAFE Partner Award last year, while SP Services received the bizSAFE Star, the highest level of accreditation under the Workplace Safety and Health Council’s BizSAFE framework. 08 GIVING BACK TO SINGAPORE As part of the SG50 celebrations, the company undertook the following activities:– We are providing mobile device charging stations at hospitals, libraries, tertiary institutions, supermarkets and other selected public places. Recognising that mobile devices have become a necessity of modern living, “Gift of Power” will provide easy access for the public to charge their devices. We were the main sponsor and presenter of the “Love from the STARS” charity dinner and concert, which featured international artistes Jackie Chan, Wakin Chau, Jonathan Lee and Eric Tsang. This high profile event raised about S$6.4 million for six local charities including the Singapore Power Heartware Fund, which supports the Community Chest’s 31 programmes for the elderly. In total, we raised more than S$1.2 million for the SP Heartware Fund in the last financial year, S$600,000 of which was from our SP Charity Golf 2014, a record in the nine-year history of the event. IN APPRECIATION We welcome to the senior management Chief Legal Officer Lena Chia, Chief Financial Officer Stanley Huang, SP Telecommunications CEO Poh Mui Hoon and Head of Group Safety and Health Samuel Tso. We thank former Chief Financial Officer Lim Lay Hong for her contributions to the company during her 10 years of service, until 31 March 2015. On behalf of the Board of Directors, I would like to thank the management and the staff unions, as well as regulators and government agencies in Singapore and Australia 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 Singapore, all of us at Singapore Power wish you a Happy 50th Birthday. We look forward to many more years of Powering The Nation to new heights. As part of the SG50 celebrations… we are providing mobile device charging booths located at hospitals, libraries, tertiary institutions, supermarkets and other selected public places. At the individual level, our employees volunteered a total of 5,000 hours to community service, far exceeding the 3,000 hours target. MOHD HASSAN MARICAN Chairman July 2015 09 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 and 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 (which became the new single head entity of AusNet Services in place of its triple-stapled structure). Mr Ho is the Managing Director of Pacific Asset Management (S) Pte Ltd. He has been appointed as Investment Advisor of Blue Edge Advisors Pte Ltd and holds directorships in publicly-listed companies including DBS Group Holdings Ltd and DBS Bank Ltd. He is also a Director of Fullerton Fund Management Co Ltd and was formerly a Director of Fraser and Neave Ltd and Singapore Exchange Ltd. Mr Ho has over 30 years’ experience in managing global financial products and in organisational management. Mr Tan Chee Meng joined the Board in August 2005. A Senior Counsel, Mr Tan is the 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 and TJ Holdings (III) Pte 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 also the Chairman of PowerGas Ltd and a Director of SP PowerAssets Ltd. 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 Corporation Ltd, Keppel Land Ltd and Jurong Port Pte Ltd. Mrs Oon is a member of the Securities Industry Council. 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 SP Services Ltd, Neptune Orient Lines Ltd, Keppel Corporation Ltd, and the Energy Studies Institute at the National University of Singapore. Mr Tan was Chairman, 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 has 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. 12 He is the Chairman of United Overseas Bank Berhad, the National Heritage Board, Singapore Tyler Print Institute and the Tax Academy of Singapore. He also serves on the boards of United Overseas Bank Ltd, 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 Ltd and Hup Soon Global Corporation Ltd. A Senior Advisor of EQT Funds Management Ltd, Chairman – Asia for Coutts & Co. Ltd and a member of the Board of Trustees of Singapore Management University, 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. 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, 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 CITIC Resources Holdings Ltd and SeaTown Holdings Pte Ltd and a member of the Board of Governors, Singapore Polytechnic. 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 STANLEY HUANG 2 Chief Financial Officer POH MUI HOON Chief Executive Officer SP Telecommunications JEANNE CHENG Managing Director SP Services JIMMY KHOO Managing Director Singapore District Cooling SIM KWONG MIAN Executive Vice President Chairman, SP Engineering Board LENA CHIA Chief Legal Officer & General Counsel PETER LEONG Managing Director SP PowerGrid TAN WEI KEONG 4 Head Internal Audit MICHAEL CHIN Managing Director Special Projects SP PowerGrid CHUAH KEE HENG Head Strategic Development MADALENE HEE 1 Head Internal Audit LIM CHOR HOON Head Human Resource LIM HOWE RUN Head Regulatory Management and Strategic Investments LIM LAY HONG 3 Chief Financial Officier CHRIS LIM Managing Director SP Training and Consultancy Company SAMUEL TSO Head Group Safety and Health WONG CHIT SIENG Chief Information Officer WONG KIM YIN Group Chief Executive Officer 1 Till 21 February 2015 2 From 1 May 2015 3 Till 31 March 2015 4 From 13 March 2015 14 GROUP STRUCTURE SP PowerAssets SINGAPORE OPERATIONS Singapore District Cooling AUSTRALIA OPERATIONS 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 SINGAPORE OPERATIONS 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. AUSTRALIA OPERATIONS 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 (formerly known as SP AusNet) owns and operates Victoria’s electricity transmission network, an electricity distribution network in eastern Victoria, and a gas distribution network in western Victoria. 15 THEN SIMPLE JOYS, RICH TREASURES The bell of the ice-cream man and his trusty peddle-cart meant a welcome respite from the heat. From sweet corn to strawberry, the flavours tasted best when shared. NOW Best friends stick by us through every season of life. They light up a dark day, cheer us through our victories and are right there with us through life’s special moments. From left to right SALIMAH BINTE SULAIMAN Executive Assistant, Customer Relationship Management, SP Services KELLEY TAN YUE KEE Manager, Finance, Singapore Power 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 in 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 meets at least four times a year to review the Group’s business performance. Special Board meetings may be convened as and when necessary to consider urgent corporate actions or specific issues of importance. During the financial year, the Board met four times and held a Board Strategic Review in November 2014. Directors with potential conflict in specific subject matter 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 also 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 decisionmaking, 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 18 and the Staff Development and Compensation Committee. 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 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 accounts of the Group and the Company; • Review of the independence and objectivity of the external auditors; and • Nomination of external auditors for re-appointment The AC holds at least three meetings a year. BOARD RISK MANAGEMENT COMMITTEE Currently, 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; • The policies, procedures and methodologies for identifying, assessing, quantifying (where appropriate), monitoring and managing 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 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 19 CORPORATE GOVERNANCE (CONT’D) 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 require no less than one-third of the Directors to retire by rotation at every AGM. The NC meets at least twice a year. 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 meets at least twice a year. COMPOSITION OF BOARD AND BOARD COMMITTEES AS AT 31 JULY 2015 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, non-independent – Member Ex–officio – – 20 RISK MANAGEMENT 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 BRMC. 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 RISK MANAGEMENT INITIATIVES IN FY14/15 • Enhancement of existing risk management processes • Update on the impact of Full Retail Contestability on SP Services • Fraud Risk Assessment Review for SP Services, the Infocomm Technology Department (ITD) and the Finance Department (Treasury and Settlement) • Review of SP PowerGrid’s key operational risks – Network & Tunnel Construction • Review of IT risk – Cyber Security & Personal Data Protection Act Compliance • Review of Singapore District Cooling’s key operational risk – Plant, piping and system network • Participation as an observer and suggested areas for improvement in Business Continuity Management Exercises. 21 AWARDS & ACCOLADES 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 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/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 17025:2005 in Calibration and Measurement for Gas Flow Meters SP PowerGrid by the Singapore Accreditation Council – Singapore Laboratory Accreditation Scheme, 2005 to present bizSAFE Partner Award SP PowerGrid by Workplace Safety and Health Council, 2015 SS506 Part 1:2009 BS OHSAS 18001:2007 Certification of Occupational Health & Safety Management System SP PowerGrid by Certification International, 2014 to 2017 SS506 Part 3:2013 Certification for Occupational Safety & Health Management System SP PowerGrid (Gas Operations) by Certification International, 2015 to 2018 Construction Excellence Award (For Submarine Gas Transmission Pipeline Crossing West Jurong Channel) SP PowerGrid (Gas Operations) by Building Construction Authority, 2015 Singapore Innovation Class Certification SP Services by SPRING Singapore, 2015 to 2018 Singapore Quality Class Certification (STAR) SP Services by SPRING Singapore, 2010 to 2018 Singapore Service Class Certification SP Services by SPRING Singapore, 2010 to 2018 22 BS OHSAS 18001:2007 Certification for Occupational Health & Safety Management System SP Services by Bureau Veritas, 2014 to 2017 Achiever Award, Work-Life Excellence Awards SP Services by Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), 2014 ‘Best Companies For Mums’ SG50 Special Award SP Services by National Trades Union Congress Women’s Development Secretariat (NTUC WDS) and TAFEP Most Innovative Use of Infocomm Technology Award, National Infocomm Awards Singapore District Cooling by IDA and SiTF, 2014 BS OHSAS 18001:2007 Certification for Occupational Health & Safety Management System Singapore District Cooling by TÜV SÜD PSB Pte Ltd, 2014 to 2017 People Developer Standard Singapore Power, 2000 to 2017 SP PowerGrid, 2005 to 2017 SP Services, 2005 to 2018 by SPRING Singapore NKF Extraordinary Employer Award Singapore Power by National Kidney Foundation, 2014 Minister’s Honour Roll (Star) Singapore Power Group by the Ministry of Home Affairs, 2013 to 2018 NS Advocate Award for 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 10-Year Outstanding Special Events Award Singapore Power Group by the Community Chest, 2015 Special Events Platinum Award Singapore Power Group by the Community Chest, 2015 SHARE Corporate Silver Award Singapore Power Group by the Community Chest, 2015 Prism awards: Excellence Award in Outstanding Internal Communications Campaign Singapore Power by the Institute of Public Relations of Singapore, 2015 Asia-Pacific Stevie Awards: Gold Award, Communications/PR - Campaign: Internal Communications Singapore Power, 2015 International APEX awards for spectrum staff magazine: Grand Award, Design & Illustration. (Feb/Mar 14) Excellence Awards, Most Improved Magazines (Dec 14/Jan 15) and Feature Writing (Dec 13/Jan 14) Singapore Power by Communications Concept, Inc., 2015 23 THEN SETTING ELECTRIFYING STANDARDS Behind Singapore’s resilient power infrastructure is a team that knows what goes into building a world-class system. They walk the ground, keep a keen eye on quality and safety, and anticipate the nation’s power needs decades into the future. TAN LYE SOON Principal Engineer, Gas Operations NOW Most customers in Singapore have never experienced an electricity disruption. In 2014, the average person encountered just 20 seconds of outage a year, if at all. By monitoring the health of our network and drawing on advanced technologies, we’ve kept the lights on. From left to right MOHAMMED HAIKAL BIN ROSLAN Operation Officer, Electricity Operations, SP PowerGrid KOH CHEE KEONG Head of Section, Electricity Operations, SP PowerGrid TOK PEK CHEW Head of Section, Electricity Operations, SP PowerGrid BUILDING ON TRUST gas supply for our customers. This year, we are laying a new 14 km gas transmission pipeline from Jalan Bahar to Mandai that will deliver natural gas from the Singapore LNG Terminal to customers in the northern part of Singapore. The final portion of this new transmission pipeline is targeted for completion in September 2016. OPERATIONAL EXCELLENCE Mobilising and tracking the deployment of service crew for supply restoration are Assistant Operation Officer Rosli Bin Ramli (left) and Operation Officer Tan Chi Keong Power disruptions in Singapore are already among the lowest in the world. In the last financial year FY14/15, SP reduced that even further, and continued to work towards further improving network reliability. We have grown our electricity network capacity with the completion of the new 230kV Tembusu substation in Jurong Island. Three more transmission substations are currently under construction, and another three are being planned. As our electricity network expands, so will our ability to support Singapore’s growth, including the next phase of development for the energy hub on Jurong Island. We continue to embrace new technologies in our operations. We have installed and improved upon a number of conditioning monitoring technologies that have helped to ensure the health of our various systems. More substations have been fitted out with wireless remote monitoring and control devices, which allows us to quickly check that they are performing as well as they should. One of our largest investments to this effect, the Transmission Cable Tunnel Project, is now three years away from completion. Located 60 metres underground, deeper than the MRT tunnels, these two cross-island deep cable tunnels will help us maintain Singapore’s electricity network as one of the most reliable in the world. We continue to expand our gas network to ensure safe and secure World-class Network Performance Singapore’s power supply, already one of the most reliable in the world, became more so last year. In FY14/15, we have improved Singapore’s electricity network TWENTYPOWERFACTS “GAS” HOW WE FIRST STARTED? 01 Singapore Power has its roots in the Singapore Gas Company, which was formed in 1864 to provide piped gas to light Singapore’s street lamps. Back then, workers had to climb ladders to physically light the street lamps. When the locals first saw gas-lit street lights, they were mystified and would touch the posts gingerly in anticipation of finding them hot. At their peak, there were more than 4,000 gas-lit street lights in Singapore. It wasn’t until 1956 that the last gas street lights were replaced by electric ones. 26 reliability, as measured by the System Average Interruption Duration Index (SAIDI), by 54 per cent. A customer in Singapore would have experienced 0.34 minute of supply interruption for the full year on average, compared to 0.74 minute the previous year. This further strengthened Singapore’s lead in the 2014 global benchmark study on network reliability conducted by DNV GL. By comparison, a customer residing in Hong Kong, Tokyo, New York City or London would have experienced supply interruptions lasting 2.3 minutes, 5 minutes, 14 minutes or 50 minutes, respectively, on average. The performance of our gas network also fell within set targets. The SAIDI and SAIFI (System Average Interruption Frequency Index) scores for last year were 0.14 minute and 0.00073 interruptions per customer per year respectively. INVESTMENT IN INFRASTRUCTURE Electricity Network Development On 3 September 2014, we officially opened the Tembusu 230kV substation on Jurong Island. The S$162 million facility is the first and only substation in Singapore that has installed 500MVA 230kV series reactors, which ensured safe and stable power supply in an area of high demand. The new substation will help meet the growing needs of Jurong Island’s energy and petrochemicals industries. The construction of a second major project, a 400kV substation, is still underway on the island. Scheduled to be completed in FY18/19, this new substation will decrease the load on the current substations serving Jurong, TWENTYPOWERFACTS WORLD-CLASS RELIABILITY Singapore has the shortest and fewest electricity outages in the world, according to a global benchmark study in 2014. The average customer in Singapore experienced a total of about 44 seconds of unplanned electricity outage that year, compared to 5 minutes in Tokyo, 14 minutes in New York and 50 minutes in London. 44 02 Our customers in the heart of Singapore’s financial district continued to enjoy an uninterrupted, cost-effective and reliable alternative to conventional cooling systems. For the second consecutive year, Singapore District Cooling (SDC) provided chilled water at a constant 6 degrees Celsius to buildings without any disruption, cooling the air within. SDC’s safety record also remains unbroken, with zero accidents for the second consecutive year. Deputy Prime Minister Teo Chee Hean talking to SP staff about mobilisation responses during power supply disruptions 27 BUILDING ON TRUST (CONT’D) and help meet an anticipated increase in power demand from upcoming Jurong Island developments over the next five years. It will also supply power to Jurong and Tuas on the mainland via undersea cable tunnels. • Upper Jurong II 230kV substation This substation serves as a primary source to meet the demand growth at the Jurong area. It will also support the future Tuaspring power plant connection. • Changi Expo 66kV underground substation Our first underground substation will be located under Changi Business Park (CBP) in Singapore. It will power the proposed Downtown Line (DTL). The underground transformers at the Changi Expo substation are scheduled to be commissioned by end December 2015. The Changi East 230kV substation meets the rapidly growing demand in Eastern Singapore TWENTYPOWERFACTS AROUND THE WORLD AND BACK Singapore’s electricity cable network has grown almost 60 per cent in the past 20 years – from 16,610 km in 1995 to 26,458 km today. That’s 1995 16,610 km 2015 26,458 km 03 almost the distance from Singapore to San Francisco and back! Other electricity projects in progress include: • Changi East 230kV substation This substation will meet the rapidly growing demand for power in eastern Singapore. The region is currently served by the Paya Lebar 230kV substation, which also serves the industrial and commercial parks in Changi South and Changi North, as well as other major developments in the vicinity including the Changi Water Reclamation Plant (CWRP), Changi General Hospital and St. Andrew’s Community Hospital. Gas Network Development The natural gas network was extended by 5.66 km to connect to more industrial customers, while the town gas network was extended by 47.12 km to serve residential and commercial premises mainly in the Bukit Batok, Choa Chu Kang, Marina, Sengkang, Yishun, Punggol and Tampines housing estates. Since the Liquefied Natural Gas (LNG) Terminal commenced operations in May 2013, SPPG has continued to extend the gas transmission pipeline connected to the LNG Terminal. This year, a new gas transmission pipeline of approximately 14 km is being laid from Bahar Offtake Station to Mandai Offtake Station II. The project is targeted for completion in September 2016. Intelligent 28 To overcome the construction complexities of this project, we employed new design and tunnelling techniques, and an Instrumentation Data Management System (IDMS) jointly developed by SP and our contractors. The IDMS provides realtime updates from the tunnels to all parties involved, and allows swifter and more coordinated responses, better risk management and the adoption of mitigation measures where necessary. For the construction of the cross-island cable tunnel, the tunnel boring machine excavates through soil and rock strata underground Pigging was carried out for the newly commissioned gas transmission pipeline from Tuas South Offtake Station to Bahar Offtake Station. Two transmission customers, namely Sembcorp Tembusu Cogen and Evonik, were connected to the gas transmission network this year. The Gas Market Operations Section of the Transporter manages the operations and transactions of market participants via the Gas Transportation IT System Solution (GTSS), an IT application system designed with the requirements of the Gas Network Code (GNC) in mind. This year, SPPG implemented 27 GNC modifications that were approved by the Energy Market Authority. A major GTSS modification was undertaken to facilitate the changing of 4-hourly to 1-hourly gas nomination for injection at the SLNG Terminal. Transmission Cable Tunnel Project We made good progress on the Transmission Cable Tunnel Project, achieving two major milestones when the project team witnessed the Tunnel Boring Machine (TBM) breakthrough at the Paya Lebar and Rangoon shafts in February 2015. A five-year project scheduled to be completed in 2018, it is one of our longest and biggest infrastructural projects, and will ensure that Singapore continues to enjoy uninterrupted power for years to come. When completed, the two 35 km tunnels being laid 60 m (about 18 storeys) underground will hold transmission cables sending power to households, offices and factories. Cables can be accessed through the two tunnels, allowing them to be maintained and replaced more easily, and reducing the need for excavation at ground level. Improved Health Checks on Electricity Assets We remained vigilant about conducting condition monitoring or “health checks” on our power networks, successfully pre-empting 72 network failures during FY14/15 which could have cost us S$2.87 million. Condition monitoring is key in helping us prevent supply interruption. One of our condition monitoring technologies, the Oscillating Wave Test System (OWTS), has helped to avert 164 cases of potential cable failure from the time it was implemented in 2006 and the end of FY14/15. We also took further steps to improve the reliability and performance of one of our most valuable assets, the Transmission Gas Insulated Switchgear (GIS). We fitted 25 extra high voltage transmission substations with online Partial Discharge Monitoring Systems (PDMS), which helps us detect GIS faults early and avoid equipment failure. We also installed 29 BUILDING ON TRUST (CONT’D) online Dissolved Gas Analysis (DGA) monitoring systems for 36 transmission transformers and shunt reactors. To aid surveillance and monitoring, we installed wireless remote monitoring and control devices for another 100 units of 6.6kV substations, bringing the total to 1,400 substations. Asset Health Index System We developed the Asset Health Index (AHI) System to assess the condition of our transmission network assets. The AHI System enables us to take a more objective and systematic approach to the planning and prioritising of the renewal of ageing assets. Process Automation & Field Mobility We embarked on many initiatives to improve productivity in SPPG. For example, the Touch2Plan project completed in June 2014, helped digitise the vetting process for substation drawings, eliminating the need for print outs to be physically circulated, and speeding up the entire process within the company. accurately reflected, and there is an updated remarks column. Better Condition Monitoring of Gas Assets We improved the monitoring process for our gas pipelines, introducing a Pipeline Integrity Condition Monitoring System (PICMS) on 27 April 2015. Previously, gas pipeline data was collated and analysed manually. PICMS analyses condition monitoring data and provides risk-based information, thereby supporting safe and reliable operations of our gas transmission assets. The system also pitches the integrity of our pipelines against established engineering standards, and analyses the cathode protection system’s performance along the pipelines, providing a clear report of existing and potential issues. One of our goals is to align maintenance and inspection activities to ensure effective operations. Preventing and Managing Outages Further steps were taken to reduce outage duration in Singapore. In December 2014, we introduced an Outage Management System (OMS) which enables us to respond and restore power faster in the event of a power failure. The OMS cuts our response time by 20 per cent. TWENTYPOWERFACTS NIPPING PROBLEMS IN THE BUD 04 Why is electricity supply in Singapore so reliable? Condition monitoring, or regular health checks of our equipment and infrastructure, has helped us avert more than 800 potential network incidents and disruptions since 2001. We also followed up on the substation inspection app first launched in March 2014 with an improved version in November 2014. This new version comes with further enhancements such as flexible substation listing retrieval including for decommissioned substations. Section names are From Left: Gas Transmission Projects Technical Officer Mohamed Musa bin Abdul Majeed, Executive Engineer Lian Junyue, and Technical Officer Yakob Bin Mahdar preparing to carry out equipment maintenance works at an offtake station 30 With the OMS, several data systems are available at a single source. An officer can now take a customer call, find out which power zone the disruption is located in, dispatch a crew and record details of the power restoration from the same seat. OMS can also flag previous issues to indicate if the outage is a one-time occurrence or a chronic one that requires further investigation. Our future plans include equipping service teams with tablets, so they can receive information wirelessly and fix problems even more quickly. Mr Jimmy Khoo, Managing Director of Singapore District Cooling, receiving the National Infocomm Award from Prime Minister Lee Hsien Loong Improved Vehicle Tracking System We replaced an ageing computer system used to track the movement of our vehicles with a new Utility Vehicle Management System (UVMS). It enables real-time tracking of all SPPG vehicles, and control centres can now monitor multiple vehicles on one screen. This lowers maintenance costs and improves our operations. Pipeline And Riser Inspection System SPPG embarked on a mobility solution known as the Pipeline And Riser Inspection System (PARIS) in October 2014 to improve productivity. PARIS allows remote assignment of gas riser inspection jobs to field inspectors through the use of electronic tablets. The system also allows inspectors to file inspection reports and site photographs remotely to the servers. This reduces the inefficiencies of manual job assignment and also minimises the use of paper. Since its implementation, PARIS has helped to cut down waste and optimise the deployment of existing resources, achieving productivity and cost savings. Greater Efficiency at Singapore District Cooling An idea from a team at our Singapore District Cooling plant won a National Infocomm Award in the Most Innovative Use of Infocomm Technology (Private Sector – SME) category last year. The team came up with an idea called iTransform, which is a generator of simple apps, integrated with the innovative use of low-cost smart sensors. The initiative will allow technicians and operators to convert paper forms to electronic apps. This not only improves productivity but reduces the cumbersome use of paper forms. This digitisation and IT drive will enable SDC to be a “Smart” company, in line with Singapore’s Smart Nation vision. TWENTYPOWERFACTS COOLEST IN THE WORLD 05 Singapore Power does not just power up the Marina Bay area, it also cools it down. Singapore District Cooling, a subsidiary of Singapore Power, produces chilled water at 6 degrees Celsius that is piped to Marina Bay Sands, Gardens by the Bay, Marina Bay Financial Centre and many other buildings in the premium Marina Bay area for their air-conditioning systems. In fact, Singapore District Cooling runs the largest underground district cooling network in the world. 31 THEN STAR SERVICE We believe in stellar service with a smile, at every encounter. Despite evolving needs, our customers remain at the centre of all we do. Far left CHUA JIE YING Customer Care Officer, SP Services NOW Helping you manage your utilities transactions through just one phone call, one click of a mouse on the computer, one stop at our service centre, and all in one business day. SERVING UP POWER WITH A SMILE From a mobile app allowing customers to better manage their utilities at the touch of a button to supporting the use of greener energy options, SP Services’ commitment to excellence enabled us to once again bring service levels to awardwinning heights last year. We were delighted to be awarded SPRING Singapore’s Innovation Class (I-Class) award in recognition of our service innovations. Customers also enjoyed greater convenience with e-Kiosks at all our customer service centres, a new one-stop mobile app, and faster feedback mechanisms. Customers can use one of the e-Kiosks at SP Services’ Customer Service Centres to carry out their utilities transactions We took our support for solar power generation a step further, and are excited about our participation in the Demand Response Scheme, a national initiative that will increase the reliability and efficiency of Singapore’s energy sector. The results speak for themselves: our customer satisfaction survey last year showed satisfaction at its highest level since we started commissioning the survey in 2005. SERVICE EXCELLENCE External Recognition We were proud to bag the Innovation Class (I-Class) award in October last year from the national standards and accreditation body, SPRING Singapore. The award recognises how our creative new ideas have translated into better service for our customers. It joins other SPRING awards we have received over the years, including the Singapore Quality Class Star, People Developer and Singapore Service Class (S-Class) awards. These awards relate not just to service, but also to business excellence – how our organisation is effectively run to serve our customers well, and to sustain strong business performance. Staying Connected SP also continued to make a concerted effort to stay connected with our customers and in touch with their changing needs. We often meet with representatives from various industries to provide them with updates on our projects and to better understand their needs. In April, SP PowerGrid (SPPG) hosted the 5th Power Quality Interest Group meeting for the banking industry at the Labrador 230kV substation. Members of the group learnt about TWENTYPOWERFACTS ONCE IN A LIFETIME 06 Singapore consumers enjoyed a high level of power reliability experiencing 99.9999% interruption-free electricity supply. For most, that would be no more than one power outage in their lifetime. 34 the continuous improvements SPPG has made to its network performance and reliability, and were given a tour of the Power Quality Centre. That same month, SPPG held the 9th Power Quality Advisory Panel meeting at Sentosa Golf Club. Members of the panel include senior management from various semiconductor, pharmaceutical, petrochemical and chemical companies in Singapore. The panel serves as an avenue for feedback from these industries, and promotes collaboration and knowledge sharing on power quality management. Satisfaction Guaranteed An independent annual customer satisfaction survey showed customer satisfaction levels at a record high. The survey of 1,202 respondents, conducted between October 2014 and February 2015, found that 88 per cent were “satisfied” or “very satisfied” with the service they received from SP Services, in areas including responsiveness and accuracy of information. SP’s satisfaction rankings were higher than those of seven other large Singapore service providers that our customers frequently interact with. We also outperformed utility providers both in Asia and other parts of the world. ENHANCING CUSTOMER EXPERIENCES Greater Convenience After decades of being located off Orchard Road, SP Services’ Customer Service Centre left its Somerset home in March 2015 to move to the Raffles Place-Chinatown area. Customers can now access our services at our new service centre on Cross Street, conveniently located next to the Telok Ayer MRT station. TWENTYPOWERFACTS MILLIONS OF METERS Each of our 1.4 million customers has meters to measure their electricity, water and gas usage. On average, SP Services’ meter readers read some 75,000 meters a day while our SP technicians install close to 500 new meters a day. 07 All three of our customer service centres – the other two are at Toa Payoh and Woodlands – now have self-service e-Kiosks where customers in a rush can apply for or terminate a residential utilities account, view and print utilities bills and payment slips, and submit meter readings, among other things. Mohamed Asadullah bin Mohd Khalid, Meter Reader, leveraging technology to ensure reliable meter data readings SP On-the-Go While we upgrade our physical locations, we continue to emphasise our digital channels. With more customers going mobile, SP Services has launched a host of service channels for users on the go, from self-service e-Kiosks and online FAQs to e-billing. In January 2015, we introduced a mobile app that will help users reduce their energy and water consumption, lower their utilities bill and do their part in conserving the environment. 35 SERVING UP POWER WITH A SMILE (CONT’D) Teo Kai Zhi, Customer Care Officer (right), assisting a customer at the new SP Services Customer Service Centre at Cross Street With the one-stop app, users can access their past bills, track their power consumption against their neighbours’, find out which of their home utilities is consuming the most energy and water, set savings targets and find ways to reduce their bills. They can also submit meter readings and open or close a utilities account using the app. The app was road-tested by 310,000 customers during the pilot phase in the last quarter of 2014 and was well-received. Quicker Feedback Loop In the pilot trial of our new Electronic Customer Feedback System, customers can look forward to a fuss-free and more convenient way to provide feedback on our services. Instead of having to manually fill up forms, they will be able to send their feedback through a tablet. This touch-button convenience does away with paper forms and also allows for faster responses from SP Services staff. Power to Pay less SP Services has been working closely with the Energy Market Authority and the industry on a national programme that will improve the efficiency and reliability of Singapore’s energy market. The Demand Response (DR) programme will incentivise contestable consumers to adjust their electricity usage in response to high energy prices. The programme will go live in December 15. All contestable consumers who are able to offer a load curtailment of at least 0.1MW can participate in the Demand Response programme. TWENTYPOWERFACTS ONE AND ONLY SP Services is the only utility company in the world that connects residential customers to electricity, water and piped gas within one business day of their application. 08 36 Our key responsibility will be to provide reliable meter data on a daily basis for wholesale and retail settlement. GIVING CUSTOMERS CHOICES Supporting Contestability In the last year, SP Services has provided support and transfer services to a growing pool of contestable customers – commercial or industrial consumers – who can buy electricity from the retailer of their choice or from the wholesale market. We provided retail settlement, meter reading, meter data management, and enabled them to switch seamlessly from one retailer to another to make electricity purchases from the competitive wholesale market. Our recently introduced Advanced Metering Infrastructure (AMI) meters measure contestable customers’ usage at half-hour intervals, yielding accurate data to help consumers decide on the best service provider for them. We have also improved our IT systems to provide reliable back-end support. The number of contestable consumers is set to rise again as the contestability threshold is lowered in July 2015 to an average monthly consumption of at least 2,000 kWh. This will bring the pool of consumers eligible for contestability to 90,000, or 84 per cent of total electricity demand. Electricity Futures The EMA had decided to establish the Electricity Futures Market (EFM) to encourage new generation companies and independent retailers to enter into the Singapore electricity market. This will help to mitigate any market power concentration and further facilitate retail competition. SP Services has upgraded its IT system to support the smooth operation of the EFM. SUPPORTING GREEN SOLUTIONS In support of the increasing interest in solar energy adoption, SP now facilitates requests from contestable consumers who wish TWENTYPOWERFACTS SPOILT FOR CHOICE to sell excess solar energy to the national grid. Previously, they would have had to first register with the Energy Market Company (EMC), an onerous process when the amount of energy to be sold was very small. Now, they have the option of receiving payments from SP Services, which will aggregate their meter readings and settle payment with the EMC on their behalf. This move is aimed at simplifying the administrative process for the generation of solar energy, which is classified as an Intermittent Generation Source (IGS). The IGS scheme was introduced in July 2014. Forty years ago, customers had to make a monthly trip to the former Municipal Building at City Hall to pay their utilities bills. Today, our customers have several payment modes to choose from, like credit card, cheque, Giro and e-banking. If you prefer a friendly face to process your payment, you can still make your way to any one of our Customer Service Centres at Cross Street, Toa Payoh or Woodlands. BILL$ 09 37 THEN EMPOWERED TO EXCEL From the classroom to the field, our people are armed with the knowledge, skills and exposure to give their best to their customers, company and country. TAN SWEE SENG Senior Trainer, Training NOW Singapore Power has awarded more than 570 higher education scholarships and sponsorships to emerging engineering talent, helms the Singapore Institute of Power and Gas, and is home to possibly the largest number of certified professional engineers in Singapore. From Left U KAR MING Principal Engineer, Electricity Operations, SP PowerGrid MOHAMED AIDIL BIN SALIM Senior Engineer, Electricity Operations, SP PowerGrid LEE PEIRU Executive Engineer, Electricity Operations, SP PowerGrid SHIVA RAJ S/O RATHA KRISHNAN Executive Engineer, Electricity Operations, SP PowerGrid POWER PEOPLE SP Group CEO Wong Kim Yin with our second batch of SP Nithiah Nandan scholars at the SP Scholarship Award Ceremony 2015 At SP, we believe that people are our most important asset. We take pride in how we care for our people, channelling substantial resources into grooming and building existing and future talents. From nurturing youths in educational institutions, to developing the skills and leadership potential of our staff, our efforts are continuous, and driven by the conviction that it is our people that make us who we are. Our people have been working to power up Singapore even before it was a nation. Last year, six of our power veterans, who joined the organisation in 1964 and 1965, were honoured with 50-years long service awards from SP. They are an inspiration not only to their colleagues, but to all workers in Singapore. BUILDING OUR TALENT PIPELINE Nurturing The Next Generation To ensure a strong pipeline of talent for the power sector, SP awards scholarships, internships and book prizes to students from universities, polytechnics and the Institutes of Technical Education (ITEs) every year. In FY14/15, we awarded Singapore Power undergraduate scholarships to 10 university undergraduates and our second batch of SP Nithiah Nandan scholarships to 21 students from polytechnics and Institutes of Technical Education (ITE). Once they graduate and join us, these scholars will benefit from structured training and job rotations, as well as rich and diverse professional exposure. Since May 2013, we have given out a total of 72 book prizes to students of various tertiary institutions in our ongoing efforts to build mindshare in schools, and to reach out and inspire those with a passion for Engineering. TWENTYPOWERFACTS LEAVE IT TO THE PROFESSIONALS 10 Engineers looking to advance their careers would be in great company at Singapore Power. We have one of the highest number of certified Professional Engineers (95) in Singapore. 40 That year, the scope of the SP Book Prize was expanded to include not just top performers in electrical and power engineering at universities, but also in ITEs and Polytechnics. Ultimately, this will expand the pool of potential engineers and technical staff for the power industry. Hands On Experience We also hosted a record 87 interns from universities, polytechnics, ITEs and junior colleges. The interns – who were assigned a ‘buddy’ to guide them along – were given insights and a first-hand feel of working in the power industry to spark an interest in a career with us. Engineering the Right Skill Sets Our in-house leadership development programme – the Engineering Development for Graduates (EDGE) programme – started its third run for 30 engineers in July 2015. Since EDGE was started in July 2013, over 80 engineers have benefited from the structured programme that trains and develops a pool of multi-skilled engineers to meet SP’s business needs. This not only strengthens the practical engineering foundation of the fresh graduates, but also exposes them to a wide spectrum of our businesses and operations during their formative years. Powering our Leaders In June 2014, we extended a leadership development tool, the 360° Leadership Feedback Survey, to our Deputy Directors and Heads of Section. With this inclusion, 200 of our middle and senior managers are benefitting from feedback on TWENTYPOWERFACTS LIFETIME OF COMMITMENT Through the years, our staff have worked hard to power the nation – even before we were a nation. In 2014, we had three technicians and one meter reading inspector who joined us before Singapore was declared independent in August 1965, back when we were still a part of the Public Utilities Board (PUB ). 2015 1994 11 19841974 1964 Muhammad Redzuan Bin Sulaiman, Gas Operations, Dennis Khah, Electricity Operations, and Leong Qian Wei, Electricity Operations, are part of Singapore Powers EDGE leadership development programme 41 POWER PEOPLE (CONT’D) the effectiveness of their leadership not just from their immediate supervisors, but also from their peers and subordinates. We also conducted four runs of a customised Leadership Milestone Programme – Powering Leaders – to reinforce our leaders’ development in the leadership competencies that address business and management challenges. Participants also benefitted from hearing SP’s senior leaders share their personal leadership experiences relating to strategy, innovation and change management during the programme. STAYING AHEAD WITH OUR LABOUR RELATIONSHIPS In August 2014, SP became the first company in the power and gas industry to sign a Memorandum of Understanding with the Union of Power and Gas Employees (UPAGE) to extend the scope of the union’s representation in certain areas beyond Non-Executives, to include Executives, Engineers and Managers. This initiative was made in acknowledgement of the changing workforce profile in the SP Group of Companies where there has been a growing number of executive employees. CARING FOR OUR PEOPLE With an eye on our employees’ well-being, we re-designed our employee wellness programme to the more holistic StepUp! programme. Launched last year, StepUp! encourages employees to take charge of their personal health and wellness by attending programmes covering areas such as health, parenting, workplace bonding and financial planning. This more holistic approach to total wellness seeks to encourage healthy lifestyle habits within a total wellness framework. Our inaugural Health and Wellness Celebration Week was held in October 2014. Participating staff members were given a healthy snack starter pack and a pedometer to measure the number of steps they walked each day. They also took part in sporting activities, including a mass Telematch event at the Bedok Sports Hall, and the first-ever SP Games which saw more than 400 staff members participate in various competitive team sports. MEETING INDUSTRY NEEDS In September 2014, the Singapore Institute of Power and Gas (SIPG) was established as a one-stop training and development centre for professionals in the power and gas sector. One of the key milestones of SIPG was its recognition as an Approved Training Organisation by the Energy Market Authority (EMA) in June 2015. This will enable SIPG to leverage the Energy Training Fund administered by EMA. NTUC Secretary-General Mr Chan Chun Sing (centre) interacting with SP’s Manangement and UPAGE Delegates To broaden existing training in the area of transmission and distribution (T&D) of electricity and gas, four new courses have been developed. We have started 42 new course development work not only in T&D but also for Power Generation Plants, with industry support. All courses in SIPG will be mapped to the National Energy Competency Framework launched by EMA to ensure that they meet the competency needs of the industry. In addition, to address the emerging and increasingly pervasive use of solar power in Singapore, SIPG has introduced a new course on the Installation and Commissioning of Grid Tied Photovoltaic System. TWENTYPOWERFACTS ALL AROUND YOU Have you ever noticed Singapore Power’s substations or electricity overground boxes in your neighbourhood? There are more than 37,000 overground boxes and almost 11,000 substations across the nation that help to transmit and distribute electricity to our buildings and facilities – combined, that’s 10 times more than the number of bus stops in Singapore. 12 Over the past year, more than 280 training sessions across 100 courses have been organised to develop and deepen the skills of our staff and the industry. SIPG is working with local and global industry players to enhance local capabilities for the present and future needs of the industry. Executive Engineer Zac Teo Zi Cheng (right) cheering his team on during the annual Sports for Life event 43 THEN LIGHTING UP LIVES A helping hand when it’s least expected, and a smile when it matters most. The friends we can count on will get us through each day and are right by our side when we need them. Right TOH BEE HOON JANICE Executive Assistant, Regulatory Management, Singapore Power NOW We flex our muscles and reach out as far as we can – to our pioneers, little ones and families-in-need. Giving our time and energy to create joyful memories that last a lifetime. From left, in blue SP t-shirt JONATHAN OOI WEI HSIN Director, Legal & Corp Secretariat, Singapore Power KOON SWEE LING Manager, Finance, Singapore Power INDRA SHUN Administrative Assistant, Electricity Operations, SP PowerGrid POWERING WITH HEART Just as we power the nation’s growth and economy, SP is also proud to be able to light up the lives of those who need it most. Our efforts centre around donations to the needy elderly through the Singapore Power Heartware Fund, and active volunteerism by employees who devote time to causes such as care for the needy elderly, energy efficiency and safety for the community. Whether through the contribution of funds or time, we play our part in improving the quality of life of communities-in-need, and provide Staff volunteers assembling Power Packs of food essentials, to be distributed to beneficiaries of the Singapore Power Heartware Fund TWENTYPOWERFACTS POWERING THE HEART 13 Powering the Nation is about more than just keeping the lights on and the gas flowing. It’s also about improving the lives of the underprivileged. Since its inception in 2005, the Singapore Power Heartware Fund has supported the delivery of more than 4.9 million warm meals to the doorsteps of needy seniors and made sure seniors were accompanied on more than 82,000 trips for medical and rehabilitation care. sustainable solutions that reinforce our commitment to nation-building. RAISING FUNDS SP Heartware Fund Last year, the SP Heartware Fund reached out to 31,000 beneficiaries of 26 elderly programmes managed by the Community Chest. We were able to provide warm, nutritious meals and medical transport for those who live alone, dementia day care, hospice care, caregiver support, and living expenses for those who live in community homes. In FY14/15, we raised over S$1.2 million for the Fund. This was made possible by staff donations, fundraising events and contributions from members of the public who responded generously to our letters of appeal. Our annual Charity Golf Event, now in its 9th year, raised a record S$600,000 for the Fund last September. Under the Care and Share movement, funds were matched dollar-for-dollar by the Government. Our consistent efforts to raise funds for the Heartware Fund earned us the 2014 Special Events Platinum Award from the Community Chest. More than 30 per cent of our staff make monthly contributions to the Community Chest’s SHARE programme, which provides a stable source of funds to its beneficiaries. In recognition of these contributions, we received the SHARE Silver Award in September 2014. 46 GIVING TIME Besides donating money, our staff were also generous with their time. In FY 14/15, SP staff members spent 5,000 volunteer hours giving back to the community, far exceeding the 3,000-hour target we set for the year. The broad range of volunteer activities undertaken by our staff included presenting a charity gala dinner and concert, distributing emergency preparedness kits to Singapore households, and organising festive outings and celebrations for families from lowincome backgrounds. One highlight was packing and distributing 3,000 Power Packs of food essentials for needy seniors across Singapore. More than 370 staff volunteers spent over 1,600 hours on this activity, some driving their own SP volunteers bringing smiles to the faces of the elderly residents of All Saints Home through games and music vehicles to deliver the kits to destinations island-wide. Another first for SP was our Community Day event on 22 November 2014, held in partnership with Central Singapore and PEACE- Connect. More than 120 staff visited elderly residents living in North Bridge Road and cleaned their one- and two-room rental flats, decluttering, giving the homes fresh coats of paint, and even fumigating to rid some units of bed bugs. We also gave the elderly advice on how to use their electrical appliances safely, and conducted an enjoyable terrarium-making workshop for them. Volunteers and children alike enjoying the magic show during the outreach at Viva Foundation for Children with Cancer 47 POWERING WITH HEART (CONT’D) TWENTYPOWERFACTS 14 NATURAL GOODNESS SP Group CEO Wong Kim Yin (right) with representatives from various partners at the launch of our “Gift of Power” for SG50 CELEBRATING SG50 Free Charging Of Mobile Devices To commemorate the nation’s 50th birthday, SP is giving Singapore a “Gift of Power” to help people stay connected on the go. Two hundred mobile device charging stations are being set up at public hospitals and polyclinics, libraries, tertiary institutions and supermarkets throughout Singapore. These stations offer free charging services for members of the public to give their mobile devices a power boost on us. The stations will also screen public service videos on safety, energy efficiency, charitable causes and other useful topics. Love From The Stars In May 2015, SP was the presenter and main sponsor of Love from the STARS, a charity gala dinner and concert held in conjunction Singapore generates 90 per cent of our electricity today by burning natural gas, which is cleaner than fuel oil. This is up from just 10 per cent less than five years ago. We at Singapore Power are doing our part by transporting natural gas from our neighbours Malaysia and Indonesia through undersea pipes, and transporting it to the power generation companies. SP was the presenter and main sponsor of Love from the STARS which raised $6.4 million for six charities 48 with SG50. Proceeds from the event went to more than 160,000 beneficiaries of six local charities: Singapore Power Heartware Fund, All Saints Home, Sian Chay Medical Institution, Singapore University of Technology and Design scholarship fund, Thye Hua Kwan Moral Charities and Viva Foundation for Children with Cancer. For the first time, international artistes Jackie Chan, Wakin Chau, Jonathan Lee and Eric Tsang collaborated on the same stage for a good cause. Guests included Guest of Honour President Tony Tan and Mrs Mary Tan, Emeritus Senior Minister Goh Chok Tong and Mrs Goh, corporate leaders, sponsors and donors, as well as beneficiaries and their families. Singapore Power contributed more than S$500,000 towards the operating expenses of Love from the Stars and ran the event secretariat, helping to organise and promote the event. SP staff also volunteered their time to bring cheer to the beneficiaries of the charities by organising entertaining activities for them. Through the sale of dinner tables, an auction and outright donations, we helped to raise close to S$6.4 million, exceeding the S$6 million target. Energy Efficiency Taskforce Co-Lead Mike Chan Siang Chin (left) and Electricity Efficiency Centre Executive Assistant Haameshwaran s/o Panirselvam (third from left) show Second Minister for Trade and Industry S Iswaran (second from left) how the Great Energy Challenge is played during the launch of the “Energy Heroes: It’s your Power!” campaign at the Singapore International Energy Week Energy Heroes: It’s Your Power In October 2014, during the Singapore International Energy Week, SP launched a campaign to bring energy awareness to schools. Throughout 2015, some 16,000 students will be treated to an interactive roving exhibit where they will get the chance to learn about energy conservation through interactive games. This joint initiative by Singapore Power and the Energy Market Authority (EMA) is aimed at educating students in a fun and interactive way and inspiring them to take action in energy conservation. TWENTYPOWERFACTS JUST IN CASE 15 Have you ever noticed a giant, bright yellow metallic sphere in the Toh Tuck area? That iconic structure is the Toh Tuck gasholder, opened in 1998, which serves as a contingency store of town gas. The Toh Tuck gasholder can supply the nation with gas for up to 6 to 8 hours, should a backup be needed for the main gas supply from Senoko Gasworks. 49 SAFETY FIRST A PLEDGE TO SAFETY Safety excellence is essential to the responsible delivery of energy. At all our staff events, we reaffirm our pledge to safety. Safety is our highest priority. Every life is precious. Every accident is avoidable. We uphold safe practices and strive for zero accident. TWENTYPOWERFACTS FROM START TO FINISH SP Services processes about 31,000 requests monthly to open and close utilities accounts - that’s more than 1,000 a day on average. Powering the nation is busy work! 17 While delivering a power network that stands amongst the world’s best in terms of reliability and efficiency, we also emphasise the safety of our colleagues, our contractors and our community. Last year, everyone from the senior management to workers on the ground continued to drive home TWENTYPOWERFACTS REACHING DEEP 16 By 2018, Singapore Power will have built the deepest of any utilities or transportation tunnel in Singapore. Our tunnels for electricity transmission cables reach up to 60 m deep – more than the height of a 30-storey HDB block! the safety message by upholding rules and procedures, and through training, regular inspections and personal diligence. We pay special heed to road safety, ensuring that our workers navigate the roads without compromising their own safety or that of the public. Our efforts were recognised by the Workplace Safety and Health Council (WSHC) at their annual industry awards. Taking Care of our People In 2014, our safety performance improved by 50 per cent compared to 2013, as measured by the Lost Time Injury Frequency Rate (LTIFR). Our safety efforts are led by line management, who walk the talk to demonstrate their commitment to safety. Each month, our senior management conducts safety walkabouts at our work sites. This initiative has not only created traction with the rest of the line organisation but has also sent a strong message to both staff and contractors that we make safety a priority. In 2014, we conducted more than 50 senior management walkabouts, and over 15,000 safety observations group wide. To keep an even tighter rein on safety, we expanded the window of reporting safety incidents to include those with injuries resulting in between one and three lostwork days, and also included those incidents in our safety performance. Previously, we only included incidents with injuries resulting in more than three lostwork days, in line with Ministry of Manpower requirements. In 2014, we set up the Group Safety & Health department to further 50 to refresh their skills. In future, the requirement will be extended to all employees who have driving licences. Before setting off for work, the vehicles of the workers are inspected by their supervisor, to ensure that each vehicle does not pose a threat to the driver, passengers or other road-users. Singapore Power Senior Management at a work-site safety walkabout raise safety standards across SP. It we launched a group-wide Vehicle develops and spearheads initiatives and Driving Safety Campaign within the company. These include in February 2015, where risk sharing of lessons learnt from past assessment, safety briefings and incidents and the enhancement training were a key part. Contests of near-miss reporting. This new were organised to encourage staff department’s work complements participation in the campaign. the annual Safety Roadshow that our safety officers have rolled out Safety on the Move at all district offices and the Safety We installed video cameras in our Refresher Course that covered fleet of vehicles, including motor more than 1,700 workers last year. cars and motorcycles. The ‘eye’ in the vehicle encourages our drivers TARGETED SAFETY MEASURES to drive more safely, while the high definition graphics captured For specific activities with high provides an impartial record in the perceived risks, we implemented case of an accident. targeted safety measures to mitigate the risks. A new guideline was also developed that requires all field staff with a Many of our employees have to be driving or riding licence to attend on the road as part of their work. defensive driving or riding training In order to enhance driving safety, respectively once every five years Working at Heights Programme We introduced a Work-at-Height (WAH) programme for staff who often perform tasks high above the ground, for example examining substation roofs or maintaining transformers and switchgears within our substations. The programme covers topics such as fall prevention measures and the safe use of work-at-height equipment like ladders. We also conducted briefings on related safety equipment and WAH regulations, and shared industry best practices. TWENTYPOWERFACTS UNDER THE SEA When an undersea tunnel linking Jurong Island to the mainland is completed in 2018, Singapore Power staff carrying out their work there will be able to walk under the sea to get to Jurong Island – all 4,500 steps or so. 18 51 SAFETY FIRST (CONT’D) TWENTYPOWERFACTS CARVING OUT SPACE To construct two crossisland underground cable tunnels to house the high-voltage transmission cables of the future, we will have to excavate more than 1.1 million cubic metres of dirt, soil and rocks – enough to fill more than 450 Olympic-sized swimming pools! 19 System Certifications We were pleased to receive the following certifications in the past year, in recognition of our safety management system: The safety management systems of both SP PowerGrid and SP Services were certified under SS 506 (Singapore Standard on Occupational Safety and Health Management System) and OHSAS 18001:2007 (International Standard on Occupational Health and Safety Management System). Both systems were subsequently awarded the bizSAFE Star, the highest level of certification under the Workplace Safety and Health Council’s bizSAFE framework. Taking Care of our Contractors We continued to improve the safety of our contractors through frequent communication sessions, safety induction, safety orientation courses, safety inspections, and a post-contract performance evaluation at the end of each project. As part of our contractor safety efforts, our project and safety officers conducted regular safety audits and shared their findings with our contractors, who then carried out corrective actions to improve their own safety. We also had regular dialogues with our contractors to identify areas that may pose a danger to their workers. Through these dialogues, we discovered that workers faced a higher risk of leg injury when doing road works with heavy machinery nearby. We have since installed both rear-view and other additional mirrors on our excavators to remove blind spots. This reduces the chances of excavator operators accidentally injuring their fellow workers performing jobs nearby. We also installed alarms that beep while the machines are in operation, so that surrounding workers are constantly aware that the machine is close by. Safety is a concerted multi-level effort between SPPG, its partners and contractors Safety programmes In July 2014, we initiated a compulsory safety programme for our contractor workers. Safety@ SPPG is conducted in the various native languages of the workers so 52 that the safety message is easily embraced by the workers. Our goal is to raise their safety awareness when performing common jobs like road works. Since the launch of the programme, we have trained more than 1,500 workers. In February 2015, the SP Training Institute customised this course for workers involved in our transmission cable tunnel project. In addition to classroom training, the workers are taken on a tour of a cable tunnel site to see the twostorey-high Tunnel Boring Machine up close. This helps them better understand the need for safety. About 800 cable tunnel workers have undergone this course by the SP Training Institute. We have also conducted briefings on the importance of wearing Personal Protective Equipment (PPE) – including helmets, reflective vests and safety boots – to standardise practices among our contractors. Mr Peter Leong (right) Managing Director, SP PowerGrid, receiving the bizSAFE Partner Award from then Manpower Minister Mr Tan Chuan-Jin have obtained at least bizSAFE Level 4 certification. SP PowerGrid won the bizSAFE Partner Award in February 2015. The award is testimony to SP PowerGrid’s continuous efforts in helping contractors and partners improve safety at both the company and national level. behaviour among our workers as well as to identify and rectify unsafe practices. The footage will also help us share and learn from incidents and near-misses. TWENTYPOWERFACTS 20 AWARDS AND RECOGNITION All contractors who work with us must join the bizSAFE programme, a nation-wide five-step safety programme run by the Workplace Safety and Health Council (WSHC). Since last year, we have required all our contractors and subcontractors to be at least bizSAFE Level 4-certified, up from our previous requirement of bizSAFE Level 3. To date, over 130 of our contractors Recognising Safety To promote a culture of safety, we reward our contractor workers for adopting safe practices by giving them supermarket vouchers on the spot. We also give cash awards to those contractors who have made measurable progress in their safety performance. We will be installing closed-circuit television (CCTV) cameras at critical work sites to encourage safe A POWERFUL HISTORY Some of Singapore’s most prominent arts and entertainment buildings used to be power facilities. One is The Substation at Bras Basah, and another is St James Power Station near Sentosa, which was Singapore’s first coal-fired power plant. 53 FINANCIAL SUMMARY CONTENTS Summary Directors’ Report 55 Independent Auditor’s Report 57 Balance Sheets 58 Income Statements 59 Statements of Comprehensive Income 60 Statements of Changes in Equity 61 Notes to the Summary Financial Statements 63 54 SUMMARY DIRECTORS’ REPORT YEAR ENDED 31 MARCH 2015 IMPORTANT NOTE The summary financial statements as set out on pages 58 to 67 contains only a summary of the information in the directors’ report and financial statements of Singapore Power Limited’s (the “Company”) annual report. It does not contain sufficient information to allow for a full understanding of the results and the state of affairs of the Company or of the Company and its subsidiaries (collectively the “Group”). The full annual report, including the independent auditor’s report on those financial statements and the directors’ report, can be found on the Group’s website www.singaporepower.com.sg. 1. DIRECTORS The directors in office at the date of this report are as follows: Tan Sri Mohd Hassan Marican Mr Ho Tian Yee Mr Tan Chee Meng Mr Choi Shing Kwok Mrs Oon Kum Loon Mr Tan Puay Chiang Mr Ong Yew Huat Mr Timothy Chia Chee Ming (Appointed on 16 June 2014) Mr Ng Kwan Meng (Appointed on 16 June 2014) Mr Wong Kim Yin 2. PRINCIPAL ACTIVITIES The principal activities of the Company are that of investment holding and provision of management support services. Its subsidiaries are engaged principally in the transmission and distribution of electricity and gas, provision of related consultancy services and investments in related projects. 3. UNUSUAL ITEMS DURING AND AFTER FINANCIAL YEAR In the opinion of the directors, no item, transaction or event of a material and unusual nature has arisen during the financial year or in the interval between the end of the financial year and the date of this report which would substantially affect the results of the operations of the Group and the Company for the financial year in which this report is made, or render any item in the financial statements of the Group and the Company for the current financial year misleading, and/or affect the ability of the Group and the Company in meeting the obligations as and when they fall due, except as disclosed in the notes to the full financial statements. 55 SUMMARY DIRECTORS’ REPORT YEAR ENDED 31 MARCH 2015 The summary financial statements set out on pages 58 to 67 was approved by the Board of Directors on 11 June 2015 and was signed on its behalf by: TAN SRI MOHD HASSAN MARICAN Chairman MR WONG KIM YIN Group Chief Executive Officer/Director 11 June 2015 56 INDEPENDENT AUDITOR’S REPORT ON THE SUMMARY FINANCIAL STATEMENTS REPORT TO THE MEMBER OF SINGAPORE POWER LIMITED The accompanying summary financial statements of Singapore Power Limited (the “Company”) and its subsidiaries (the “Group”), which comprise the consolidated balance sheet of the Group and the balance sheet of the Company as at 31 March 2015, the consolidated income statement, statement of comprehensive income and statement of changes in equity of the Group and the income statement and statement of comprehensive income of the Company for the year then ended, and related notes as set out on pages 58 to 67, are derived from the audited financial statements of the Group for the year then ended. We expressed an unmodified audit opinion on those audited financial statements in our report dated 11 June 2015. The summary financial statements do not contain all the disclosures required by the Singapore Financial Reporting Standards. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of the Group. Management’s responsibility for the summary financial statements Management is responsible for the preparation of a summary of the audited financial statements on the basis described in note 1. Auditors’ responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Singapore Standard on Auditing 810 “Engagements to Report on Summary Financial Statements”. Opinion In our opinion, the accompanying summary financial statements derived from the audited financial statements of the Group for the year ended 31 March 2015 are consistent, in all material respects, with those audited financial statements, on the basis described in note 1. Other Matter The summary financial statements of the Group and Company for the year ended 31 March 2014 were audited by another auditor who expressed an unmodified opinion on those statements on 30 May 2014. ERNST & YOUNG LLP Public Accountants and Chartered Accountants Singapore 11 June 2015 57 BALANCE SHEETS AS AT 31 MARCH 2015 Group Company 2015 2014 2015 2014 $ million $ million $ million $ million (restated)* (restated)* Non-current assets Property, plant and equipment 10,292.1 9,437.5 22.3 24.0 Intangible assets 117.7 106.6 7.6 7.6 Subsidiaries – – 6,854.9 6,779.5 Associates and joint venture 3,010.3 3,354.3 1.3 1.3 Other non-current assets 227.3 170.5 60.3 1.1 Deferred tax assets 8.3 12.1 – – Other investments 197.2 – 197.2 – 13,852.9 13,081.0 7,143.6 6,813.5 Current assets Other investments 3.8 – 3.8 – Inventories 53.0 48.3 – – Trade and other receivables 522.0 730.3 3,827.6 2,689.1 Cash and cash equivalents 1,203.3 3,120.4 544.6 2,872.4 1,782.1 3,899.0 4,376.0 5,561.5 Total assets 15,635.0 16,980.0 11,519.6 12,375.0 Equity Share capital 2,911.9 3,911.9 2,911.9 3,911.9 Reserves (265.9) 39.7 (0.6) – Accumulated profits 5,882.0 5,269.4 4,918.1 4,886.5 Equity attributable to owner of the Company 8,528.0 9,221.0 7,829.4 8,798.4 Non-controlling interests – 46.9 – – Total equity 8,528.0 9,267.9 7,829.4 8,798.4 Non-current liabilities Bank loans 79.7 100.0 – – Debt obligations 3,174.5 3,715.3 – – Other financial liabilities 71.6 111.6 9.4 – Other non-current liabilities 364.7 470.7 3.5 3.6 Deferred tax liabilities 1,150.9 1,099.8 0.4 1.4 4,841.4 5,497.4 13.3 5.0 Current liabilities Trade and other payables 1,531.9 1,886.8 3,668.7 3,567.1 Debt obligations 582.4 162.1 – – Other financial liabilities 13.2 34.0 – – Current tax payable 138.1 131.8 8.2 4.5 2,265.6 2,214.7 3,676.9 3,571.6 Total liabilities 7,107.0 7,712.1 3,690.2 3,576.6 Total equity and liabilities 15,635.0 16,980.0 11,519.6 12,375.0 * See note 2 58 INCOME STATEMENTS YEAR ENDED 31 MARCH 2015 Group Company 2015 2014 2015 2014 $ million $ million $ million $ million (restated)* Continuing operations Revenue 4,840.3 4,793.1 477.3 198.3 Other income 191.7 265.6 5.0 10.3 Expenses - Purchased power (2,873.4) (3,202.7) – – - Depreciation of property, plant and equipment (502.4) (456.2) (4.9) (5.8) - Amortisation of intangible assets (23.8) (21.7) (2.1) (2.6) - Maintenance (87.4) (97.4) (5.9) (4.6) - Staff costs (259.0) (337.0) (60.7) (57.7) - Property taxes (44.1) (56.3) (0.3) (0.3) - Other operating expenses (132.8) (163.0) (24.3) (13.8) Operating profit 1,109.1 724.4 384.1 123.8 Finance income 20.1 13.5 27.9 21.9 Finance costs (88.8) (82.5) (4.8) (6.9) Share of profit of associates, net of tax 146.3 33.3 – – Share of profit of joint venture, net of tax 1.5 3.1 – – Profit before taxation 1,188.2 691.8 407.2 138.8 Tax (expense)/credit (191.8) (151.9) (5.6) 4.9 Profit from continuing operations 996.4 539.9 401.6 143.7 Discontinued operations Profit from discontinued operations, net of tax – 344.6 – – Exceptional items - Gain on derivatives used for economic hedge – 129.0 – – Profit for the year 996.4 1,013.5 401.6 143.7 Profit attributable to: Owner of the Company 991.1 921.8 401.6 143.7 Non-controlling interests

2 | TOP STORIES The Business Times | Monday, August 12, 2019 Charging power still a chicken-and-egg gripe for electric fleets Private players moving into charging market amid relative paucity of charging points By Annabeth Leow leowhma@sph.com.sg @AnnabethLeowBT and Navin Sregantan navinsre@sph.com.sg @NavinSreBT Singapore DESPITE plans to drive pollutive petrol and diesel cars into history, electric vehicles (EVs) have still struggled to lose their training wheels. The relative paucity of charging points has been held up as a “critical gap” in Singapore’s electric road map. But, even as policymakers look at fleetwide electrification for larger transport companies, private players are moving into the charging market, with the state-owned SP Group leading in its target for charging stations. In a surprise Budget 2019 move, Singapore’s excise duty on diesel was doubled to S$0.20 a litre in February. But more charging points would spur investment in EVs, industry players said – the carrot to the tax hike’s stick. Bain had estimated in a recent report that South-east Asia’s annual investment in charging infrastructure would be US$500 million by 2030. SP Group, which is owned by state investment firm Temasek Holdings, now manages 50 of the country’s roughly 200 public charging points. It is gunning for 1,000 points by next year, including 250 fast-charging DC stations, which can charge a battery in half an hour. SP Group is not the sole provider of public charging points in the city state. Greenlots, owned by Shell since January, first began operations in Singapore in 2010. It runs 34 charging points across 23 spaces, with most in the central business district. Since May, Red Dot Power’s electric charging operations have been funnelled through sister company REVO Charge. It operates seven charging points, with plans to hit 50 points in public and private areas. And, as BlueSG marked its first anniversary in Singapore, the availability of public charging stations was given a boost with the electric car-sharing platform opening up 99 charging points across 25 locations. Meanwhile, Swiss industrial vendor ABB, which already provides the equipment used by SP Group, will supply charging infrastructure for the operators behind two-thirds of “One of the challenges in Singapore is the size of the market – which will limit the logic of having too many different networks competing with one another.” Bain partner Dale Hardcastle Singapore’s 60 electric buses in 2020. Jagwinder Singh, Singapore general manager of overland and distribution for Kuehne + Nagel, called islandwide charging availability “a key consideration” in the logistics multinational’s decision to roll out two light-duty Renault electric vans last year. But Goh Chee Kiong, head of strategic development at SP Group, noted that charging infrastructure – which the Bain report called a chicken-and-egg issue – now makes for “a critical gap, often expressed by prospective EV buyers in their considerations”. “One of the challenges in Singapore is the size of the market – which will limit the logic of having too many different networks competing with one another,” Bain partner Dale Hardcastle later told The Business Times. “It may be more logically and faster to have few networks set up by single parties of consortium to accelerate the pace of development.” Johan de Villiers, managing director for Singapore and South-east Asia at ABB, told BT that, as the sector evolves, “the need for collaboration is greater than ever”, as businesses like his will have to work with manufacturers and operators on issues such as technology standards. But Vijay Sirse, chief executive of REVO Charge, said operators are still trying to build up their own bases. “There are also technical challenges for roaming that must be addressed – for example, the harmonisation of different communication and data transfer technologies,” said Mr Sirse. “Another challenge is the safe and secure exchange of consumer usage data.” Tan Kong Hwee, executive director for mobility at the Economic Development Board (EDB), told BT that charging infrastructure providers must figure out the business case for their own solutions and services. “Thereafter, they could become the first movers in Singapore’s transition to EVs,” he said. “(The) EDB will continue to engage various fleet players – including logistics companies – to understand how fleet electrification could benefit their businesses.” Christopher Leck, deputy group director of technology and industry development at the Land Transport Authority (LTA), had told the Credit Suisse Global Supertrends Conference in April that “it makes sense” to The total cost of ownership for EVs may also yield more favourable economics for commercial fleet owners that have higher-intensity operations with light vehicles or lorries ..., the Bain report says. BT FILE PHOTO focus on electrifying large fleets of buses, lorries and taxis, rather than private, individually owned vehicles. ComfortDelGro Corp, which has some 12,000 cabs on Singapore’s roads, tied up with Greenlots in 2018 to run a fast-charging station through an engineering unit. It plans to open a second such station later this year. These charging stations support ComfortDelGro’s four fully electric Hyundai Ioniq and Kona taxis, which are part of an ongoing trial. Those drivers can also use other Greenlots charging services, and a charging station at Komoco Motors in Alexandra. Bain has suggested that commercial fleets will help to flip the switch in the region, as fleet owners “may develop their own charging infrastructure and only would need to make outside investments (or tap third parties) for top-up charging” elsewhere. The total cost of ownership for EVs may also yield more favourable economics for commercial fleet owners that have higher-intensity operations with light vehicles or lorries – especially in markets such as Singapore with higher fuel costs, the report added. Bloomberg New Energy Finance has previously reported that “long-haul, heavy-duty trucks will be harder to electricify” and may have to tap natural gas and hydrogen cells. Yet EDB executive director Lee Eng Keat, whose portfolio includes Singapore’s logistics industry cluster, noted at the Invest Asia 2019 conference in May that, “as fleet replacements come, the cost of a diesel or a carbon engine versus an electric vehicle is coming to close up”. Bain pointed to ride-hailing firm Grab, which has deals with SP Group and car maker Hyundai to lease and manage 200 electric vehicles here until year-end. It suggested that food delivery fleets could follow Grab’s lead – although, when asked what other sectors might go electric, Mr Hardcastle said that logistics providers will need to wait for more EV options to hit the market, while public buses rely on larger and costlier batteries, making a switch a matter of “a few more years”. But “BlueSG and other car sharing services would be able to capture similar benefits to fleets like Grab or Go-Jek, depending upon their business and leading model”, he added. “When looking at charging capacity for buses and trucks, the industry is currently limited to a maximum charge of 600kW,” noted ABB’s Mr de Villiers. “However, there is also significant potential for evolution in this sector, with 1MW charging possible in the not-too-distant future.” Grab’s fleet electrification was part of a joint government trial – which, a spokesman for the LTA told BT, has found out that shared-car fleets could reap economies of scale “with higher daily mileage and potentially lower running costs” than private vehicles. Mr Leck said that the LTA has worked with infrastructure vendors and hopes to “proliferate these sorts of charging infrastructure” publicly. “But, for most of these companies... the primary purpose, as in the case of BlueSG, is really to provision infrastructure for their own shared vehicles first,” he acknowledged. Meanwhile, Kuehne + Nagel’s Mr Singh said that the group will increase its number of EVs here “as the range of EVs improve, the size of the vehicle increases and there are more charging points along our transportation routes in commercial areas”. With the two electric vans now charged at the group’s logistics hub in Pioneer Crescent, “an increase in the number of charging points across the island would have a positive impact on our plans to increase our EV investment in Singapore”, he said, adding that government funding “would help to defray costs and accelerate the transformation” as well. BT Infographics Are we there yet? The central question regarding the growth of electric vehicle (EV) use in Singapore is whether infrastructure needs to be developed first before interest in EVs pick ups among individuals and business owners. The answer is somewhere in between. In the last couple of years, cheaper running costs and more affordable variants of electric vehicles have sprouted up, together with more public and private charging facilties being built.There were 560 electric cars in Singapore last year compared with 12 in 2016. Electric goods and services vehicles have more than doubled in that time. Here is a breakdown of vehicle charging stations available for public use. BY NAVIN SREGANTAN KRANJI EXPRESSWAY AYERRAJAH EXPRESSWAY PAN-ISLA N D EXPRESSWAY SELETAR E XPRE SSWAY E SS CENTRAL EXPRESS WAY L E TAMPINES EXPRESSWAY XPRE W Y AY WA KALLANG-P AYA LEBAR E XPRESSWAY MACALISTER ROAD EAST COAST PARKWAY COLLEGE ROAD Singapore General Hospital K A MPONG BAHRU ROAD Police Cantonment Complex Cantonment Primary School CANTONMENT LINK NEIL ROAD CANTONMENT ROAD CLEMENCEAU AVE Tanjong Pagar Plaza HOE CHIANG ROAD RIVER VALLEY RD Clarke Quay station ANSON ROAD CHJIMES BOON TAT ST SHENTON SHENTON WAY WAY Singapore River Raffles Place station City Hall station Tanjong Pagar station Padang Esplanade station Marina Reservoir Bugis station MARINA BOULEVARD Downtown station One Fullerton Suntec City Mall Bayfront station Promenade station Gardens by the Bay MARINA GARDENS DRIVE AYER RAJAH EXPRESSWAY KEPPEL ROAD Shenton Way Bus Terminal BlueSG, a subsidiary of French conglomerate Bollore Group, commenced operations in Dec 2017 as Singapore's first, electric-only car sharing service. In celebration of its first year here, BlueSG opened up a select group of charging stations for public use. Since late April, drivers of electric vehicles were able to charge their rides at HDB, URA & JTC carparks at 99 charging points across 25 locations in Singapore. While drivers are slowly shifting to electric vehicles, Jenny Lim, BlueSG's commercial and network director notes that currently, BlueSG has 30,000 rentals a month across its 465 BlueCar fleet from 6,000 a year ago. SP Group started operating public charging stations in January and currently has opened 54 electric vehicle charging points across 12 locations with plans to operate 1,000 charging points in Singapore by 2020. The points comprise 50kW direct current (DC) chargers, which are able to fully power up a vehicle in 30 minutes, and 43kW alternating current (AC) chargers. The grid operator's head of strategic development Goh Chee Kiong said that in the past two years, the company started replacing its fleet of vehicles with electric ones and through that, realised that there was a need to address a critical gap in electric vehicle charging infrastructure. An early mover into the electric vehicle charging space, Greenlots commenced operations in 2010 to address the lack of dedicated infrastructure for EV charging. In January, it was acquired by oil major Royal Dutch Shell where it is now a wholly-owned subsidiary of Shell New Energies. It continues to grow its footprint with 34 public charging points across 23 locations, with half of them concentrated in the central business district. It is in discussions with other parties to expand reach and accessibility of electric vehicle charging points in Singapore. It operates many charging points in condominiums and office buildings. Red Dot Power has had its eye on the EV charging business as part of the firm’s strategic plan to offer a one-stop energy solution for buildings. Since May, its electric charging operations are funnelled through sister company REVO Charge, a wholly owned entity of homegrown energy services company vTrium Energy. REVO Charge currently has seven public chargers in operations with the rest of its chargers being private chargers or pending commissioning. Six of those public chargers are at Bukit Timah Shopping Centre and one is at Holland Road Shopping Centre. Two more are under installation at Gardens By The Bay. REVO Charge is on track to hit its target of 50 EV chargers (both private and public) by the end of 2019. Compiled by BT Sources: BlueSG, Greenlots, REVO Charge and SPGroup (charging stations as at August 8, 2019) BT Graphics: Hyrie Rahmat Source: The Business Times © Singapore Press Holdings Limited. Permission required for reproduction.

News Release Singapore Polytechnic Students Rebuild Solar Car After Setback, Supported By Singapore Power   Singapore, 29 September 2015 – Just three weeks from departure for a prestigious international race, Singapore Polytechnic students’ chances of competing were crushed when their self-built solar car, SunSPEC4 was destroyed. Undaunted, the Singapore Polytechnic team rose to the challenge to rebuild the car, with strong support from sponsor Singapore Power. The team of 52 students and lecturers worked nights and weekends to rebuild a new vehicle in four weeks, compared to eight months for the original car. With additional funding and logistical support from Singapore Power, the team acquired and assembled parts under a highly-compressed schedule. Airfreight saved two weeks, compared to marine freight. Singapore Power alumni – all alumni of Singapore Polytechnic – also provided additional support. The polytechnic’s team is the only Singapore contender in what is considered the toughest solar car race in the world. The team will travel 3,000km from Darwin to Adelaide in six days, using only solar energy. Singapore Power is the sponsor of this initiative, through a five-year $1 million-partnership. The wide-ranging agreement will enable the Singapore Polytechnic team to compete at the biennial World Solar Challenge in 2015, 2017 and 2019. Mr Steven Chew, Team Manager and Senior Lecturer at the polytechnic’s School of Electrical and Electronic Engineering, said, “The students had worked so hard to create the solar car. Just when we were ready to unveil it and pit it against the world’s best at the World Solar Challenge, the setback took everything away. We were devastated to see 20 months of hard work totally destroyed in front of us. But we received strong encouragement from our Board and management, and the students responded by committing to rebuild the car to stay in the Challenge. This became possible when Singapore Power stepped up their sponsorship, including airfreighting the car, which shaved two weeks from the schedule.” Mr Lee Kok Kin, Singapore Power’s Head of Group Risk Management and alumni of the polytechnic, said “Singapore Power stepped up our support so that the entire production can be expedited, especially with supply of materials. We also helped to secure space for road testing. My colleagues and I, all alumni, joined the team to help where we are needed. We want to see our juniors bounce back from this setback, and are committed to supporting them with funding, time and all resources necessary.” Singapore Power Group CEO Mr Wong Kim Yin said, “It is important that we support the students to help them overcome the setback. Against all odds, they have committed themselves to stay in the World Solar Challenge. We must nurture this resilient, “never-say-die” spirit in our younger generation. Singapore can be proud of our SunSPEC team as they hold our flag high in Australia!” Besides being Singapore’s sole entry, SunSPEC4 is the only team from a polytechnic, competing alongside leading global universities such as Stanford University, Cambridge University, and the Massachusetts Institute of Technology. The team is in the advanced Cruiser Class category of the competition which encourages the cars to be designed for practicality and acceptance in today’s market segment. Please refer to the accompanying factsheet for details on the World Solar Challenge, Singapore Polytechnic’s participation with SunSPEC4 and Singapore Power’s sponsorship. Follow the SunSPEC team’s journey on Facebook at https://www.facebook.com/TeamSunSPEC. About Singapore Power Singapore Power Group 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, and district cooling businesses in Singapore and China. More than 1.4 million industrial, commercial and residential customers in Singapore benefit from Singapore Power’s world-class transmission, distribution and market support services. The networks in Singapore are amongst the most reliable and cost-effective worldwide. For more information, please visit www.singaporepower.com.sg. About Singapore Polytechnic Established in 1954, Singapore Polytechnic is Singapore’s first polytechnic. It has 10 schools that offer 49 full-time diploma courses for close to 16,000 students. Singapore Polytechnic adopts a proven creative teaching and learning framework and offers students a holistic, authentic and industry-relevant curriculum, innovative and vibrant learning spaces, and enriching overseas programmes. The Polytechnic is committed to producing competent and versatile graduates who are also imbued with sound values, so that they can be work ready, life ready and world-ready. Singapore Polytechnic has more than 184,000 graduates and among them are successful entrepreneurs, top executives in multi-national and public-listed corporations, and well-known professionals across various industries and leaders in government. Singapore Polytechnic is the first polytechnic to be awarded the President’s Award for the Environment in 2010 and the President’s Social Service Award in 2011. Follow Singapore Polytechnic on Facebook at http://www.facebook.com/singaporepolytechnic or Twitter at http://twitter.com/SingaporePoly   FACT SHEET About the World Solar Challenge The World Solar Challenge is considered one of the world’s toughest solar car challenges, and regularly sees leading global universities such as Cambridge University, the Massachusetts Institute of Technology, and Stanford University participating. Participants in the Cruiser Class race some 3,000km across the breadth of Australia from Darwin to Adelaide, without a single drop of fuel and with only one mid-point charging station. Vehicles operate on actual roads, at road speeds. Singapore Polytechnic is participating in the World Solar Challenge for the third time, with SunSPEC4 as its first entrant in the Cruiser Class. About the partnership between Singapore Power and Singapore Polytechnic Singapore Power and Singapore Polytechnic announced a SGD $1 million, five-year partnership which will see the two organisations collaborate to participate at the next three editions of the World Solar Challenge in 2015, 2017 and 2019. As part of the partnership, Singapore Power will contribute building materials, subject-matter expertise, logistics and public education. Singapore Power’s key objectives for this partnership are: To nurture and develop the next generation of engineers and talents Sustainability – To develop energy efficiency initiatives in caring for the environment Innovation – To promote renewables and innovation in technology developments, such as Solar Powered devices Project Overview About the Team   Size:  43 students, nine lecturers and three Singapore Power engineers Background : Multi-disciplinary team representing expertise from the schools of Electrical & Electronic Engineering; Mechanical & Aeronautical Engineering; and Digital Media & Infocomm Technology The team designed and built the original SunSpec4 over a 20-month period – from December 2013. Following a fire on 25 August 2015, the team subsequently rebuilt a new SunSPEC4 from scratch in just four weeks. Singapore Power stepped up its sponsorship to help the team stay in the race. The new SunSPEC4 was also rebuilt with the additional safety measures: Reinforcements to strengthen solar car body Solar panels able to follow body contour for improved aerodynamics Improved battery system with compartmentalisation and usage of flame retardant materials Enhanced battery management system with external fuse protection for battery system Improved ventilation for driver and passenger Detailed handling checklists and procedures, covering e.g. mechanical, battery, and motor subsystems About SunSPEC4   SunSPEC4 is Singapore Polytechnic’s fourth solar car, and its first two-seater model. Designed and built completely in-house, SunSPEC4 resembles a futuristic saloon car – albeit one powered solely by solar cells. In contrast to the polytechnic’s previous solar models, SunSPEC4 is designed to perform similarly to a standard commercial car in terms of speed, seating capacity, and range. Incorporating leading-edge technology throughout its engineering, many of the car’s features out-perform commercial variants. For example, SunSPEC4 weights a mere 220kg – a fifth of an average 1.6 litre car, and uses thinner solar panels which are approximately 10 per cent more efficient than typical commercial versions. SunSPEC4’s drag coefficient of 0.13 is more than 50 per cent more efficient than an average passenger car. The car is Singapore Polytechnic’s most technologically advanced and highest performing model to date. SunSPEC4 will be Singapore’s sole representative at the World Solar Challenge; and the only team from a polytechnic, competing alongside leading global universities such as Stanford University, Cambridge University, and the Massachusetts Institute of Technology. For the first time in Singapore Polytechnic’s participation at the World Solar Challenge, the team will be competing in the more advanced Cruiser Class. In this category, teams are encouraged to design their cars based on innovation, energy consumption, as well as practicality and acceptance from end-users. SunSPEC4 Key Specifications Dimensions: 4.5m (l) x1.8m (w) x 1.2m (h, max) Body: Full carbon fibre body Motor Drive System: 2-wheel drive, powered by two – 2 kilowatt high efficiency brushless DC motor Top Speed: 90 – 100 km/h Drag Coefficient: 0.13 Passenger Capacity: 1 driver and 1 passenger Power Supply: 122V 15 kW Li-ion battery pack – The car runs on less power than a household electric kettle Unladen Weight: 220kg  - About a fifth of the weight of an average 1.6litre family sedan Driving Range: A single charge provides a range of 500km – enough to drive a journey from Singapore to Malacca and back

OVERCOMING CHALLENGES Forging Ahead Annual Report 2009 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. 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. We practise the highest ethical standards. CONTENTS 01 ABOUT SP GROUP 04 FROM THE CHAIRMAN 07 FINANCIAL HIGHLIGHTS 08 GROUP STRUCTURE 09 AWARDS & ACCOLADES 10 CORPORATE REVIEW 12 CORPORATE GOVERNANCE 12 Board of Directors 18 Organisational Structure 19 Ethics & Accountability 22 Senior Management 26 OPERATIONS REVIEW – SINGAPORE OPERATIONS 28 SP PowerAssets 30 PowerGas 32 SP PowerGrid 38 SP Services 41 SP Global Solutions 44 Singapore District Cooling 46 OPERATIONS REVIEW – AUSTRALIA OPERATIONS 48 SP AusNet 52 SPI (Australia) Assets / Jemena 56 OPERATIONAL SUPPORT 56 Human Resource 59 Infocomm Technology 61 Risk Management 62 COMMUNITY & ENVIRONMENT 65 FINANCIAL SUMMARY 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, primarily consisting of 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$30.7 billion of assets in FY 09/10. OVERCOMING CHALLENGES Forging Ahead Amidst the economic downturn, we sustained our capabilities and performance, and delivered all-round excellence. With a keen eye on the future, we develop capacity for tomorrow’s demands. Together, as a group, we seek to capture the opportunities ahead. We are Singapore Power. SP Annual Report 09 FROM THE CHAIRMAN OVERCOMING CHALLENGES Forging Ahead 04 Ng Kee Choe Chairman Amidst a challenging economic backdrop, the SP Group proved to be resilient in every aspect of its business and operations whilst continuing on a growth path to surpass past performance. SP Annual Report 09 Financial Performance SP Group’s net profit for the financial year ended 31 Mar 2010 was S$728 million, excluding exceptional and non-recurring items. This represents an 18 per cent increase over the previous year’s results, largely driven by higher electricity and gas volumes in Singapore. The Group’s return on equity stood at 13.4 per cent, excluding exceptional and non-recurring items. During the financial year, an adjustment charge of S$1.0 billion was recognised due largely to changes in cost of capital and assumptions used in the forecasted cash flows in respect of certain assets. The charge relates mainly to goodwill and has no impact on the Group’s business operations. As a result of this adjustment charge, the reported profit was a negative S$238.2 million. Total assets grew by 17 per cent to S$30.7 billion, partly due to a strengthened Australia dollar. We continue to invest our network to meet growth demand and to replace and renew ageing assets. To this end, S$1.7 billion was invested in our networks. Given the continuing uncertainties in the global financial situation and to further strengthen our capital structure, we increased our equity by S$1.5 billion during the year. And reflecting our financial strength and the sound fundamentals of our underlying business, we successfully refinanced our maturing debts and secured fresh funding for capital expenditures at competitive terms. A total of S$3 billion financing was completed in FY 09/10. Operational Excellence SP PowerGrid recorded its best ever performance in electricity network in FY 09/10. The System Average Interruption Duration Index (SAIDI) score of 0.31 minute for the electricity grid was a 55 per cent improvement over the FY 08/09 performance. For the third time in the Group’s history, electricity SAIDI went below a minute, indicating a network reliability of 99.9999 per cent. The System Average Interruption Frequency Index (SAIFI) score of 0.007 interruption per customer per year was 56 per cent better than the FY 08/09 result of 0.016 interruption per customer per year. Similarly, the SAIFI score for its gas network was 0.0011 interruption per customer per year, a 45 per cent improvement over FY 08/09’s score of 0.0020 interruption per customer per year. SP Services’ efforts in providing customers with hassle-free service were recognised in a global survey. Singapore ranked number one among 26 countries in the ease of setting up utilities accounts. The survey results revealed that 82 per cent of the expatriate community in Singapore found setting up utilities accounts here a fuss-free experience. For its high standard of service and excellence, SP Services was awarded the Service Quality Class (Star) Award. In Australia, SP AusNet became the first Australian electricity distribution business to introduce a fully-automated Distribution Feeder Automation (DFA) scheme in its power system control. The DFA scheme allows the network to respond to momentary faults, as well as transfer supply on the network automatically and remotely within 60 seconds, enabling SP AusNet to deliver more reliable electricity to its customers. The Select Solutions group was established in April 2009 as a non-regulated business unit under SP AusNet. It provides Data Measurement Solutions, Technical Services, Telecommunications and Utility Services to help customers manage their energy, water and environmental requirements. The service provision extends across Australia, New Zealand and Asia, with facilities in New South Wales and Victoria. To address industry challenges more effectively, a group-wide information and communications technology approach was adopted. The IT units of SP Ltd, SP PowerGrid and SP Services were consolidated to form the Infocomm Technology Department (ITD). The move also seeks to better support various functions to achieve business objectives and capture synergies for the SP Group. Major Developments and Projects A key focus was preparing the Group to overcome anticipated challenges and seize opportunities in the energy and utilities landscape where energy conservation and smart grid technologies will be important drivers. In line with this direction was the management’s priority to put in place human resource and training initiatives towards building the workforce capacity and core competencies to enable SP to meet the requirements of tomorrow’s operations and business. During the year, SP became an active partner in Energy Market Authority (EMA)-led projects, to facilitate and introduce new technologies to the Singapore market. These included the Intelligent Energy System (IES) pilot project to test and evaluate new applications and technologies around a Smart Grid. 05 SP Annual Report 09 FROM THE CHAIRMAN In Australia, under the Advanced Meter Infrastructure initiative, smart meters are being installed for all residential and small business customers connected to the electricity distribution network, as mandated by the Victorian Government. SP AusNet and Jemena commenced the rollout of the meters in late 2009 and completion is currently scheduled for 2013. SP also contributed nearly S$130,000 towards some other 20 charities and community groups. Our dedication and contributions were recognised in the form of the SHARE Corporate Gold Award and 2008 Special Events Platinum Award, conferred by the Community Chest of Singapore. 06 Growing Human Capital Human capital development continues to be a key activity for the Group. Our efforts in this regard were recognised; SP has been recertified as a ‘People Developer’ by SPRING Singapore. A number of initiatives have been put in place to build capacity and develop people. Among these were an enhanced Engineering and Technical Career Track to advance the professional development of engineering staff, and our partnership with the Union of Power and Gas Employees (UPAGE), Workforce Development Agency of Singapore (WDA), Employment & Employability Institute (e2i) and major industry players towards the rollout of Workforce Skills Qualifications (WSQ) training for the Energy Utilities Industry. SP’s strong partnership with UPAGE underpinned a collaboration that helped the company weather a volatile and uncertain year. In recognition of the joint effort between SP management and UPAGE to help employees ride out the tough times together through re-skilling and upgrading, SP was conferred the May Day Model Partnership Award 2009 by the National Trades Union Congress (NTUC). In Australia, SP AusNet and Jemena remained committed to attracting, recruiting, developing and retaining high performing professionals to strengthen their respective talent pool. Jemena introduced the Graduate Development Program which is designed to equip competent professionals with a thorough understanding of Jemena and a broad range of relevant skills and experiences to excel in their careers. SP AusNet continued to keep its sights on building a strong employee engagement culture by implementing a framework which enhances employee engagement on a ‘Say, Stay and Strive’ methodology. Caring for the Community SP reaffirmed its commitment to aiding the needy elderly through our continued support for the Singapore Community Chest through the SP Heartware Fund. In FY 09/10, thanks to the support of our corporate partners, members of the public and staff, S$707,000 was raised for the Home Help Service, enabling over 1,000 needy elderly to their golden years in their own homes and within their communities with grace and dignity. Appreciation I would like to thank my fellow Board members for their guidance, support and invaluable advice which helped to steer the company through a difficult year. I also wish to extend my appreciation to Mr Paul Chan who retired from the Board at the SP Annual General Meeting in July 2010. SP has benefited much from Mr Chan’s past contributions in the SP Board and Board Risk Management Committee. I am also pleased to welcome Mrs Oon Kum Loon and Mr Ng Yat Chung who joined the Board on 1 April 2010. To the Executive Committee and members of UPAGE, as well as the Unions representing our employees in Australia, I thank them for fostering the close relationship that we enjoy and for their support through the difficult economic conditions. For their dedication and commitment in overcoming the challenges in a recession year, I thank the management and staff of SP in Singapore and Australia. Not least, my sincere appreciation goes to our business partners and customers for their continued support and patronage. Forging Ahead Through prudent financial management, keen business focus, and a committed and competent workforce led by able management, the SP Group has emerged stronger from the recent economic turmoil. With the support of our stakeholders, we will continue to build resilience to face new challenges while creating the capability to exploit future opportunities. We are on track to delivering greater value and in moving towards our vision of being a leading energy infrastructure company in the Asia Pacific. Ng Kee Choe Chairman 5 July 2010 FINANCIAL HIGHLIGHTS SP Annual Report 09 Operating Revenue (S$million) Total Assets (S$million) 8,000 6,000 5,447 7,215 6,626 40,000 30,000 29,043 26,298 30,724 4,000 20,000 2,000 10,000 0 FY 07/08 FY 08/09 FY 09/10 FY 07/08 FY 08/09 FY 09/10 0 Underlying Net Profit After Tax* (S$million) Shareholders’ Equity (S$million) 800 600 400 628 616 728 8,000 6,000 4,000 4,615 4,052 6,783 200 2,000 0 FY 07/08 FY 08/09 FY 09/10 FY 07/08 FY 08/09 FY 09/10 0 Economic Value Added (EVA) (S$million) Underlying Return On Equity* (Percentage) 07 400 20 300 200 220 172 212 16 12 8 14.7 14.2 13.4 100 4 0 FY 07/08 FY 08/09 FY 09/10 FY 07/08 FY 08/09 FY 09/10 0 * Excluding Exceptional and Non-recurring items. SP Annual Report 09 GROUP STRUCTURE Singapore Power Limited Singapore Operations Australia Operations Main Businesses Other Businesses Main Businesses SP PowerAssets SP Telecommunications SP AusNet PowerGas Singapore District Cooling (60%) SPI (Australia) Assets SP PowerGrid SP Global Solutions SPI Management Services SP Services Jemena Asset Management Companies Asset owning companies Management services companies 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, while 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 Telecommunications provides telecom infrastructure services, leveraging SP’s expertise in managing and developing infrastructure assets. Singapore District Cooling is a joint venture company providing chilled water for the air-conditioning of commercial buildings. SP Global Solutions provides consultancy, training and management services, leveraging SP’s expertise in developing and operating energy utility infrastructure and businesses. 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 (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. SPI Management Services is the management company operating the business of SP AusNet under a management services agreement. 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. SP Annual Report 09 AWARDS & ACCOLADES ISO 9001:2008 Certification for Quality Management System • SP PowerGrid (Distribution Control & Customer Services Section) by Certification International, FY 06/07 to present • SP PowerGrid (Network Development) (Electricity) by Certification International, FY 02/03 to present • SP PowerGrid (Network Management) (Electricity) by Certification International, FY 02/03 to present • SP PowerGrid (Gas Operations) by SGS International Certification Services Singapore Pte Ltd, FY 00/01 to present • SP Services by BSI Management Systems, FY 04/05 to present Singapore Quality Class Certification (STAR) • SP Services by SPRING Singapore, 2010 to 2013 Singapore Service Class Certification • SP Services by SPRING Singapore, 2010 to 2013 ISO/IEC 17025 for Calibration and Measurement of Gas Meters • PowerGas by Singapore Accreditation Council-Singapore Laboratory Accreditation Scheme, 2005 to present BSI PAS 55 Certification to British Asset Management Specification • SP AusNet by Asset Management Consulting Limited, 2008 to 2013 Innovation in Utility Services Engineering Award • Jemena Sydney Primary Loop Project by Institute of Public Works Engineering Australia (NSW) Team of Excellence in a Long Term Alliance • CLM Infrastructure (a member of the Jemena Group of Companies) by Alliancing Association of Australasia Safety Initiative Award • Jemena Gas and Water operations by New South Wales Gas Excellence Awards SAP Most Outstanding Project Award • SP Services, 2009 OHSAS Certification for Occupational Health & Safety Management System • Singapore District Cooling by TÜV SÜD PSB Pte Ltd, 2008 to 2011 People Developer by SPRING Singapore • Singapore Power, 2000 to 2013 • SP PowerGrid, 2005 to 2012 • SP Services, 2005 to 2013 Singapore H.E.A.L.T.H. (Helping Employees Achieve Life-Time Health) Award, Gold • Singapore Power Group by Health Promotion Board, 2004 to 2010 Work-Life Achiever Award • Singapore Power Group by Ministry of Manpower, 2006 to 2010 Leading HR Practices Awards in Strategic HR, Employee Relations & People Management, Compensation and Rewards Management, Learning & Human Capital Development and The Corporate HR Award • Singapore Power Group by Singapore Human Resources Institute, 2009 Minister for Defence Award • Singapore Power Group by Ministry of Defence, 2005 to 2010 The Minister’s Honours Roll & Minister for Home Affairs Award • Singapore Power Group by Ministry of Home Affairs, 2008 to 2010 2009 Equal Opportunity for Women in the Workplace Agency (EOWA) Business Achievement Award for Outstanding Equal Employment Opportunity (EEO) Practice • SP AusNet by Equal Opportunity for Women in the Workplace Agency (EOWA), 2009 SHARE Corporate Gold Award • Singapore Power Group by Community Chest, 2003 to 2008 Special Events Platinum Award • Singapore Power Group by Community Chest, 2006 to 2008 09 SP Annual Report 09 CORPORATE REVIEW The second half of FY 09/10 witnessed the nascent recovery of economies following the 2007 global financial crisis. The upturn is, however, uneven with Asian economies finding a firmer footing than the US and EU economies. The SP Group’s strategic focus on transmission and distribution segments of electricity and gas industries has stood us in good stead, providing us with defensive, stable and predictable revenues and earnings even during a volatile period. Despite the economic slowdown, we continued to strengthen our core capabilities and expertise in operations by continuing to invest in the development of our people and technical competencies. These serve to strengthen our business and better engage our customers. The strength of SP stems from four key pillars, namely Investment Strategy Financing Strategy and Capital Management Operational Excellence Human Capital 10 Investment Strategy SP continuously seeks to improve returns and deliver sustainable, long term value to our stakeholders by optimising its capital structure, enhancing the regulatory framework, streamlining operations and improving business efficiencies. Australia remains the focus of SP’s overseas strategic investments. The earning contribution from Australia was 33 per cent in FY 09/10 and was primarily driven by the regulated network businesses. The past year also saw the completion of three major regulatory revenue applications, namely the Electricity Distribution Price Review for the Jemena Electricity Network and SP AusNet Electricity Network in Victoria, and the Gas Access Arrangement Review for the Jemena Gas Network in New South Wales. During the year in review, we reinforced our Australian portfolio through a further injection of capital into Jemena. SP Annual Report 09 The optimised capital structure would enable Jemena to focus on building a long term sustainable business, growing in tandem with the Australian economy and expansion of the energy infrastructure sector. In seeking to enhance shareholder value, SP looks within to realise synergies among our units. Enterprise Business Services (Australia) Pty Ltd, established in October 2008, represents a major step forward in creating efficiencies and economy in IT operations for the Australian entities in the SP Group. Further progress is being made as the Singapore and Australian entities explore more opportunities for shared services within the Group. At the same time, in Singapore as well as in Australia, SP seeks to assimilate emerging technologies with the promise of efficiency gains or revenue potential in both the regulated and unregulated sectors. One such example is the rollout of state-of-the-art Advanced Metering Infrastructure by SP AusNet and Jemena in Victoria. The expertise and experience gained from implementing this programme will put SP in good stead as the development of Smart Grid technology gathers momentum in Singapore and Asia. Financing Strategy and Capital Management Despite a challenging financing environment with constrained lending capacity, particularly in the first half of 2009, SP managed to successfully refinance our maturing debts and fund our capital expenditure at competitive rates. The following financial transactions were completed during the year: • SP PowerAssets Limited (SPPA) issued S$875 million of bonds through a series of private bond placements. These issuances comprised notes with maturities ranging from 3.5 to 20 years in three different currencies, and were issued under SPPA’s Global Medium Term Note Programme. • SP AusNet raised A$325 million of credit facilities in April 2009 and issued an equivalent of A$920 million of bonds through a combination of CHF, HKD and AUD issues in February and March 2010. • SPI (Australia) Asset Pty Ltd secured a total of A$370 million in bank debt facilities in June 2009. The favourable response to SP’s financing initiatives reflects the strength of our underlying business fundamentals and the market’s recognition of our prudent and disciplined debt strategy. The Group is committed to an optimal capital structure and to maintaining our strong credit ratings. SP is rated AA- by Standard & Poor’s and Aa3 by Moody’s Investors Service. Operational Excellence SPPA’s electricity network in Singapore is rated one of the world’s best in international benchmarking. In Singapore, our electricity network achieved its best ever network reliability performance, where a customer experienced an average of 0.31 minute of unplanned electricity interruptions during the year. Similarly, the average number of unplanned gas supply interruptions experienced in the year was only 0.0011 interruption per customer, which is equivalent to one unplanned gas interruption every 909 years. These stellar network performances were a result of SP’s quality management of the network in delivering a highly reliable and quality supply. In Australia, collaboration between SP AusNet and Jemena has yielded operational efficiencies for both. Operational agreements concluded between SP AusNet and Jemena in 2009 have resulted in SP AusNet providing services in which it has a natural competitive advantage to Jemena, and vice versa, thus achieving cost savings for mutual benefit. Building Human Capital SP’s sustained competitive advantage resides in our competent and committed workforce. At the end of FY 09/10, SP Group had a total workforce of 6,866 employees in Singapore and Australia. The development and nurturing of our people is given priority even in an economic downturn. In FY 09/10, employee training exceeded what we had targeted. Remaining firmly committed to enabling our people to realise their full potential and advance in their careers, SP provided opportunities for higher education, on-the-job training, involvement in special projects, overseas postings, job rotations and mentorship programmes. SP’s approach to building human capital recognises the need to maintain a balanced workforce in terms of experience and youth. To help older employees remain relevant, we support them in their pursuit of lifelong learning. We also recognise the importance of more experienced staff sharing and passing on their knowledge to their younger colleagues. To renew our talent pool, we actively reach out to fresh prospects at scholarship fairs, career fairs and through internships, and nurture and develop them. 11 SP Annual Report 09 BOARD OF DIRECTORS 12 From left: Mr Alan Chan Heng Loon, Mr Ng Kee Choe and Prof Jeremy Guy Ashcroft Davis AM SP Annual Report 09 Mr Ng Kee Choe Mr Ng Kee Choe, 66, 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, Fullerton Financial Holdings Pte Ltd and CapitaLand Limited. 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, 57, 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. He was appointed Chairman of the Corporate Governance Council which was established in February 2010 by the Monetary 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, Blu Inc Media Sdn Bhd and World Association of Newspaper – IFRA. Mr Chan was awarded the Public Administration Medal (Gold) in 2002. Prof Jeremy Guy Ashcroft Davis AM Prof Jeremy Guy Ashcroft Davis, 67, 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, the Australian Institute of Management Canberra and Asian Renewable Energy Management Ltd. 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. 13 SP Annual Report 09 BOARD OF DIRECTORS 14 From left: Mr Ho Tian Yee, Mr Tan Chee Meng, SC, Mr Bobby Chin Yoke Choong and Mr Eric Gwee Teck Hai SP Annual Report 09 Mr Ho Tian Yee Mr Ho Tian Yee, 58, 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, 53, 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 the Deputy Managing Partner of WongPartnership LLP and Chairman of its Middle East Practice. 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, St Gabriel’s Foundation, All Saints Home and WOPA Services Pte Ltd. Mr Bobby Chin Yoke Choong Mr Bobby Chin Yoke Choong, 58, 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). He was appointed to the Council of Presidential Advisers in January 2010. 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. Mr Eric Gwee Teck Hai Mr Eric Gwee Teck Hai, 71, 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. 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. 15 SP Annual Report 09 BOARD OF DIRECTORS 16 Clockwise from top left: Mr Choi Shing Kwok, Mr Ng Yat Chung, Mr Quek Poh Huat, Mr Paul Chan Kwai Wah and Mrs Oon Kum Loon SP Annual Report 09 Mr Paul Chan Kwai Wah Mr Paul Chan Kwai Wah, 56, is a non-executive independent Director of Singapore Power Limited. He was appointed on 1 August 2006. He was appointed to the Board of SP Services Limited on 1 April 2010. 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. 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, 51, is a non-executive independent Director of Singapore Power Limited. He was appointed on 1 August 2006. He is 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. Mrs Oon Kum Loon Mrs Oon Kum Loon, 59, is a non-executive independent director of Singapore Power Limited. She was appointed on 1 April 2010. Mrs Oon currently serves on the boards of China Resources Microelectronics Limited and Keppel Corporation Limited. She was formerly a director of PSA International Pte Ltd and SP PowerGrid Limited. Mrs Oon has approximately 30 years of extensive experience with DBS Bank Ltd, having held a number of management and executive positions. During her career with the Bank, she was involved with treasury and markets, corporate finance and credit management activities. She was the Chief Financial Officer of DBS Bank Ltd before she retired in 2003. Prior to serving as Chief Financial Officer, she was the Managing Director and Head of Group Risk Management, responsible for the development and implementation of a group-wide risk management framework. Mr Ng Yat Chung Mr Ng Yat Chung, 48, is a non-executive director of Singapore Power Limited. He was appointed on 1 April 2010. Mr Ng is currently Head, Portfolio Management and Operations and Co-Head, Singapore of Temasek Holdings (Private) Limited. Mr Ng is the Chairman of the Board of Trustees for the Singapore Institute of Technology and a Trustee of the National University of Singapore. He is also a board director of publicly-listed Fraser and Neave, Limited. Mr Ng was formerly a Director of PSA Corporation Ltd, ST Aerospace Supplies Pte Ltd, publicly-listed Singapore Technologies Engineering Ltd, ST Kinetics Ltd and Singapore Technologies Electronics Limited. Prior to joining Temasek Holdings, Mr Ng was the Chief of Defence Force of the Singapore Armed Forces (SAF). During his career in the SAF, Mr Ng commanded various units and served in senior staff positions including the Chief of Staff (Joint Staff) and Chief of Army respectively. Mr Quek Poh Huat Mr Quek Poh Huat, 63, 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. Mr Quek 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. 17 * 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 27 May 2010 SP Annual Report 09 ORGANISATIONAL STRUCTURE BOARD OF DIRECTORS Chairman Mr Ng Kee Choe Group Chief Executive Officer Mr Quek Poh Huat Head (Internal Audit) Ms Madalene Hee • Reports to Board Audit Committee Chief Operating Officer Mr Ong Boon Hwee Chief Financial Officer Ms Lim Lay Hong Chief Information Officer Mr Wong Chit Sieng General Counsel & Company Secretary Ms Helen Tay Bee Hoon Managing Director SPI Management Services Mr Nino Ficca Managing Director Jemena Mr Paul Adams Managing Director SP PowerGrid Mr Sim Kwong Mian Managing Director Strategic Investments Mr Lim Howe Run Deputy Managing Director Jemena Mr Lim Howe Run Managing Director SP Services Mrs Jeanne Cheng Group Finance Subsidiaries’ Finance 18 Head Human Resource Ms Lim Chor Hoon Group Risk Management Subsidiaries’ Risk Management Head Corporate Affairs Mr Nicky Tay • Reports to Board Risk Management Committee Deputy Managing Director (Planning & Strategy) Mr Jimmy Khoo Deputy Managing Director (Network Development) Mr Chung Choon Heong Deputy Managing Director (Network Management) Mr Chang Swee Tong CORPORATE GOVERNANCE SP Annual Report 09 ETHICS & ACCOUNTABILITY The SP Board is committed to good corporate governance. The Group adheres closely to the principles set out in the revised Code of Corporate Governance 2005 (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. 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 six times and held a Board Strategic Review in October 2009. 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, professional advisors 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. 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 with independent non-executive Directors constituting 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 twelve 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 Securities 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. 19 SP Annual Report 09 CORPORATE GOVERNANCE 20 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 respectively. As and when required for specific projects, special board steering committees and due diligence committees are formed to provide support and guidance to Management. Audit Committee The Audit Committee (AC) comprises three non-executive Directors and a co-opted external member, 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 within applicable laws, regulations and codes of conduct. The AC holds at least three meetings each year and is responsible for the following: • 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 accounts of the Group and the Company; • Review of the independence and objectivity of the external auditors; and • Nomination of external auditors for re-appointment. 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 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 managing risks. 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 Mrs Oon Kum Loon 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: • consider and recommend, for the Board’s approval, SP’s annual operating and capital expenditure budgets, and business and financing plans; • approve or endorse mergers, acquisitions, divestments or corporate restructuring; • approve or endorse SP’s borrowing and financing-related matters; and • approve or endorse such other matters as provided from time to time in the SP Authority Manual. The FC holds at least two meetings a year. SP Annual Report 09 The members are: Mr Ng Kee Choe (Chairman)* Mr Ho Tian Yee Mr Eric Gwee Teck Hai Mr Ng Yat Chung (appointed wef 1 April 2010)* Mr Quek Poh Huat (ex-officio)* 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. 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 require 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 – – – – Mrs Oon Kum Loon – Member – – – Mr Ng Yat Chung* – – Member – – Mr Quek Poh Huat* – Ex-officio Ex-officio Member Board Committee Members Mr Timothy Chia Chee Ming Co-opted Member – – – – 21 As at 9 April 2010 *Non-independent SP Annual Report 09 SENIOR MANAGEMENT 22 Mr Quek Poh Huat Mr Quek Poh Huat, Group Chief Executive Officer, is also 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. SP Annual Report 09 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 Mr Sim Kwong Mian Mr Sim Kwong Mian, Managing Director, SP PowerGrid, has been with SP for 15 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 (HAPUA), which leads the power interconnection project to link the member countries’ electricity networks. Between June 2009 and June 2010, Mr Sim was Chairman of the HAPUA Council. 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 (Technology) 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. 23 SP Annual Report 09 SENIOR MANAGEMENT 24 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, Group Chief Information Officer, oversees the group wide delivery of Information and Communications Technology applications and services for SP’s Singapore and Australia businesses. He has over 30 years’ experience in strategic business IT planning and the development and management of banking and utilities application systems. Prior to his appointment as Group Chief Information Officer, Mr Wong was Head (Information Systems), Singapore Power Ltd, and Managing Director, SP Services. 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 with Distinction and a Master of Business Administration from the Royal Melbourne Institute of Technology, Australia. He also graduated from the Harvard Business School’s Advanced Management Program in 2009. Mrs Jeanne Cheng Mrs Jeanne Cheng was appointed Managing Director of SP Services Ltd in September 2009. In her eight years with SP Services, she helped establish the company in its new role as the market support services licensee with the restructuring of the electricity market in 2003. Mrs Cheng has been with the SP Group for more than 14 years and has held senior positions in Corporate Communications and Business Development. Prior to joining the SP Group, Mrs Cheng worked as a media and communications specialist in both private and public sector entities. SP Annual Report 09 From far left: Mr Paul Adams Managing Director Jemena Ltd Mr Wong Chit Sieng Group Chief Information Officer Mrs Jeanne Cheng Managing Director SP Services Mr Lim Howe Run Managing Director Strategic Investments & Deputy Managing Director Jemena Ltd Ms Helen Tay Bee Hoon General Counsel & Company Secretary Ms Lim Chor Hoon Head (Human Resource) Mrs Cheng graduated from the National University of Singapore with a degree in Economics. She was awarded the Public Service Medal in 2009 for her community work. 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. Ms Helen Tay Bee Hoon Ms Helen Tay Bee Hoon, General Counsel & Company Secretary, provides legal advice on all the Group’s major deals and transactions. She is responsible for implementing policies involving board governance. Prior to joining SP, Ms Tay was Director, Legal & Regulations, at Temasek Holdings. In her legal career of more than 20 years, Ms Tay has held several key legal and secretarial positions in the Singapore Technologies/ SembCorp Group including Head of Legal Department and Company Secretary of the SembCorp Logistics Group. She has also served in private practice for several years. Ms Tay is a member of the Singapore Law Academy. She has a Bachelor of Law degree with Honours from the National University of Singapore and was called to the Singapore Bar in 1990. Ms Lim Chor Hoon Ms Lim Chor Hoon, Head (Human Resource), has over 20 years’ experience in human resource. Ms Lim is overall responsible for the Human Resource policies, programmes and services of SP. Before joining the Group, she was with the NOL Group as Vice President, Talent Management and Global Learning and Development and Temasek Holdings as Director, Human Resource. She has also worked in GuocoLand Limited, United Overseas Bank Group, and the National University of Singapore. Ms Lim holds a Bachelor of Science in Psychology from the University of Wisconsin at Madison and a Graduate Diploma in Personnel Management. As at 1 June 2010 25 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 and SP Telecommunications. OPERATIONS REVIEW 28 SP PowerAssets continues to plan ahead to meet the nation’s growing power needs. SP POWERASSETS Expanding the Electricity Network SP PowerAssets owns the electricity transmission and distribution assets in Singapore. Its fixed assets base valued at S$7.3 billion comprises modern and robust networks at 400kV, 230kV and 66kV for transmission, and 22kV, 6.6kV and 400V for distribution. SP Annual Report 09 In FY 09/10, SP PowerAssets continued to plan ahead to meet the growing electricity needs of the Singapore economy. Network infrastructure projects to expand capacity were commissioned, and existing transmission assets progressively replaced or upgraded to ensure continued reliability of the national grid. • Two 400kV circuits from Seraya were commissioned to transport generation output via the 400kV network, bringing more power from western to central Singapore. • A new 66kV substation with three 230/66kV 200MVA transformers at Labrador was commissioned. The Labrador II 230kV Extension substation supplements the existing Labrador I 66kV substation in meeting the rapidly growing demand for electricity in southern Singapore. • A new 66kV substation at Tuas was commissioned to serve the extensive industrial development, including pharmaceutical plants, in the southern part of Tuas. • As part of an ongoing network renewal programme for existing 66kV substations, six substations were commissioned. Three 230kV substations are currently under construction. When commissioned in 2012, the new Marina South substation will serve as another primary power source supplying to Marina South’s future downtown area. Meanwhile, new 230kV switchboards to replace the existing aged ones will be commissioned in 2010 and 2011. SP PowerAssets is working closely with the Economic Development Board, Jurong Town Corporation, Urban Redevelopment Authority and Energy Market Authority on the proposed 230kV substation at Tembusu, Jurong Island. Targeted for completion in December 2014, the substation will cater to new customer connections as well as manage the fault level margin for distributed generation connections on Jurong Island. The development of two major cable tunnels – a 17 km East-West tunnel and an 18 km North-South tunnel – for the future installation of transmission cables on the island is in progress. Soil investigation works were completed in the third quarter of 2009. When completed, the two tunnels will provide secure corridors for faster and more efficient installation of transmission cables, and enable the orderly and controlled replacement of ageing 230kV circuits. A new 400kV substation at Rangoon Road serving as a power injection node for bulk power transmission to the load centres in central Singapore is expected to be commissioned by December 2014. The new substation will help meet the rapid growth in demand for electricity. Network assets are inspected regularly to ensure good condition and maintain the electricity grid’s high reliability. 29 OPERATIONS REVIEW 30 Gas mains laying work in progress. POWERGAS Expanding the Gas Network PowerGas is the sole licensed gas transporter, system operator and owner of the gas transmission and distribution networks in Singapore. Among its network assets are two onshore natural gas receiving facilities and 3,100 km of underground town gas and natural gas pipelines. SP Annual Report 09 PowerGas operates the web-based round-the-clock Gas Transportation IT System Solution (GTSS), which manages the transportation of natural gas according to the rules of the Gas Network Code (GNC). During the year in review, there were no major issues with regard to capacity booking, nomination and scheduling of gas transportation services and imbalance settlement. The operation and maintenance of the pipelines, gas transmission and distribution facilities also remained relatively trouble-free. Gas Network Extension and Reinforcement In FY 09/10, PowerGas extended the natural gas network by 7 km and successfully connected six new transmission customers and six new distribution customers. The town gas network was also extended by 16 km, reaching more customers in new public housing estates as well as private residential and commercial premises. In addition, PowerGas renewed 18 km of pipelines and diverted 17 km of pipelines affected by the Mass Rapid Transit system construction, Housing & Development Board upgrading programmes and other third-party construction works. PowerGas is the sole licensed gas transporter and gas system operator in Singapore, delivering both natural gas and town gas. New Transmission Infrastructure Development PowerGas is working closely with the Energy Market Authority and Singapore Liquefied Natural Gas Corporation Pte Ltd to connect the proposed Liquefied Natural Gas (LNG) Terminal to the existing gas transmission networks. When completed, re-gasified natural gas from the LNG Terminal will be transported to end-users via PowerGas’ gas transportation system. The first phase of the S$380 million project is targeted for completion by end 2012. The 24/7 web-based GTSS system enables PowerGas to manage the transportation of natural gas. 31 SP Annual Report 09 OPERATIONS REVIEW SP POWERGRID Management 32 1 3 5 2 4 6 1 Mr Sim Kwong Mian Managing Director 2 Mr Chang Swee Tong Deputy Managing Director (Network Management) 3 Mr Jimmy Khoo Deputy Managing Director (Planning & Strategy) 4 Mr Chung Choon Heong Deputy Managing Director (Network Development) 5 Mr Chew Min Lip General Manager (Network Management) 6 Mr Cheng See Tau General Manager (Operations & Maintenance) 7 Mr Han Tek Fong General Manager (Planning & Strategy) 8 Mr Peter Leong General Manager (Projects) 9 Mr Law Chin Ho Director (Finance) & Head (Regulatory) 10 Dr Yoon Kok Thean Director (Procurement) 7 8 9 10 SP Annual Report 09 SP POWERGRID Delivering Reliable and Quality Supply SP PowerGrid manages and operates the electricity and gas transmission and distribution networks in Singapore. Network Performance – Electricity The network performance in FY 09/10 was well within regulatory targets and a significant improvement over FY 08/09’s performance. This improvement was largely attributed to SP PowerGrid’s success in averting potential failures through diligent condition monitoring and condition-based maintenance of the network. For FY 09/10, the Network Performance Indicators – System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI) were 0.31 minute and 0.007 interruption per customer respectively. These results were all-time best and were 55 per cent and 56 per cent better than FY 08/09’s SAIDI and SAIFI respectively. Network Performance – Gas SP PowerGrid has embarked on the following smart grid initiatives: • Enhancing existing intelligent systems SP PowerGrid is building upon existing systems to extend its Supervisory Control and Data Acquisition system (SCADA) monitoring to 6.6kV substations and enhance its successful online partial discharge monitoring system to cover more substations. • Leveraging smart grid initiatives by Energy Market Authority (EMA) SP PowerGrid is participating in the project management of the Intelligent Energy System (IES) pilot project spearheaded by EMA. The project seeks to test and evaluate new applications and technologies in a smart grid. Through its involvement in the IES, SP PowerGrid seeks to gain in-depth knowledge, experience and insights into smart grid solutions. • Collaborating with research institutes SP PowerGrid is also working with relevant research institutes such as A*STAR to develop other smart grid solutions to enhance its technical know-how. Gas network performance for FY 09/10 was well within regulatory targets. Gas SAIDI and SAIFI scores were 0.142 minute and 0.0011 interruption respectively. These were 13.6 per cent higher and 45 per cent lower than FY 08/09’s SAIDI and SAIFI respectively. 33 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. Smart Grid Developments The growing concern over energy efficiency coupled with advancements in telecommunication technology has propelled the smart grid into the limelight. The smart grid offers new potential for the optimisation of grid performance and forms the focus for the development of the future power grid. SP PowerGrid officers carry out an OWTS test in a substation. SP Annual Report 09 OPERATIONS REVIEW Condition Monitoring for Better Performance SP PowerGrid successfully carried out Oscillating Wave Testing System (OWTS) test for the condition monitoring of 230kV cables. This was the world’s first OWTS test at 230kV voltage level. For distribution cables, OWTS has successfully averted 107 potential failures. In FY 09/10, OWTS tests were conducted on a total of 832 230kV, 66kV, 22kV and 6.6kV circuits. SP PowerGrid continued to expand its online partial discharge monitoring system for 230kV and 66kV substations. During the year, two 230kV and four 66kV substations were retrofitted with online condition monitoring systems. In FY 09/10, a total of 55 potential failures were averted through concerted efforts in condition monitoring, contributing to improved network performance. SP PowerGrid is also working on a pilot project to monitor the water level in gas syphons located in flood-prone areas. The wireless remote monitoring of water levels in syphons enables timely intervention to prevent choking in gas pipes, which can cause gas supply disruption. A trial project will be carried out in FY 10/11. Customer Management Programme SP PowerGrid continued to engage key customers under its Customer Management Programme whereby engineers double-up as customer managers to serve them as a single point of contact. In addition, SP PowerGrid has been in close interaction with the high-tech industries on power quality through the workings of the five Power Quality Interest Groups (PQIGs) for the semiconductor, pharmaceutical, petrochemical and banking sectors and essential services. Formation of New Operational Units FY 09/10 saw the formation of a Cable Jointing Unit (CJU) and a Mass Rapid Transit Diversion Unit (MRTU) within SP PowerGrid. The CJU was formed to retain the strategic capability of cable jointing and to strengthen quality management in jointing work. The CJU manages all jointing work and training, thereby ensuring consistency in jointing practices and joint quality. The unit also audits jointers’ competency and conducts investigations of joint failures. 34 SP PowerGrid’s power quality specialists conducting voltage fluctuation tests. SP POWERGRID SP Annual Report 09 A Cable Jointing Apprenticeship Scheme was introduced to attract and train young technicians as jointers. Under the scheme, trainees undergo a one-year cable jointing course in order to qualify as junior cable jointers. They are then assigned to carry out low voltage jointing work before progressing to on-the-job training for high voltage jointing. The MRTU was formed to coordinate and manage the extensive diversion of cables and gas pipes affected by the construction of the MRT Downtown Lines. A total of 200 km of cables and pipes are expected to be diverted in the next five years. The MRTU provides a one-stop service on electricity and gas matters relating to the Downtown Lines construction, working closely with the Land Transport Authority and its contractors to minimise the extent of diversion and prevent damage to services during the construction of MRT lines. Cable and Gas Pipe Damage Prevention Programme With the integration of electricity and gas operations in SP PowerGrid, cable and gas pipe damage prevention efforts were streamlined under the Earthworks Monitoring and Cable Protection (EMCP) Section, which oversees the surveillance of transmission cables and natural gas pipelines. In FY 09/10, Cable Protection Management Teams (CPMT) comprising management staff from SP PowerGrid and government agencies took a leading role in cable damage prevention at construction sites. Regular meetings were held with the government agencies involved and their contractors to safeguard underground services at construction sites. A total of 55 sites were monitored by the CPMT. Wireless Remote Monitoring and Control of 6.6kV Network To further improve its network performance, SP PowerGrid introduced the use of wireless technology for the remote control and monitoring of its 6.6kV network, starting in public housing estates. In FY 09/10, wireless remote monitoring and control capabilities were installed in 340 substations. SP PowerGrid targets to equip another 530 substations in FY 10/11. Inline Inspection of Gas Transmission Pipelines SP PowerGrid completed the inline inspection of three gas transmission pipelines – from Attap Valley to Admiralty, Sakra to Mandai and Sakra to Tembusu – using the Magnetic Flux Leakage technology to check the internal pipelines for signs of corrosion, coating defects or metal loss. During the year, an inline inspection of the submarine pipeline linking Plentong in Johor to the Onshore Receiving Facility in Singapore was jointly carried out by SP PowerGrid and Petronas, Malaysia’s gas transporter. All the pipelines inspected were found to be in good condition. Transmission cables along worksites are patrolled daily to prevent cable damage. 35 SP Annual Report 09 OPERATIONS REVIEW ISO Certification SP PowerGrid first obtained its ISO 9001:2000 certifications in 2002. In FY 09/10, it received the ISO 9001:2008 certification for the development and management of its transmission and distribution networks, distribution control and customer services as well as for its gas operations covering network management and system operations. These certifications affirm SP PowerGrid’s institutionalised quality processes that drive consistently high performance standards. Electricity Demand The volume of electricity transmitted and distributed in FY 09/10 grew by 4.8 per cent over the previous financial year to 39,259 GWh. The increase in electricity consumption reflects the recovery in the domestic economy from the second half of 2009 as manufacturing activity grew. Demand for electricity from both manufacturing and non-manufacturing sectors was higher compared to a year ago. 36 A team from the newly-formed Cable Jointing Unit carries out maintenance work on cable oil equipment. SP POWERGRID SP Annual Report 09 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 5.00 3.70 4.00 3.85 2.20 2.25 1.21 1.14 1.99 0.69 0.31 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 09/10 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 0.269 0.149 0.387 0.491 0.199 0.125 0.142 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Electricity SAIDI – Singapore Gas SAIDI – Singapore 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 0.097 0.097 0.090 0.071 0.073 0.053 0.041 0.031 0.016 0.011 0.023 0.007 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 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 0.0047 0.0035 0.0028 0.0040 0.0016 0.0021 0.0011 0.0020 0.0011 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Electricity SAIFI – Singapore Gas SAIFI – Singapore KEY NETWORK INDICATORS – SINGAPORE 37 % Change Year-On-Year 10 8 6 4 2 0 (2) (4) 1.6 5.0 4.2 4.6 2.9 9.2 3.7 7.4 4.8 8.6 8.5 Real GDP Growth (%) (1.2) Demand Growth (%) (1.3) 3.3 4.2 1.8 1.4 01 02 03 04 05 06 07 08 09 Calendar Year 0.1 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 39,259 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Financial Year Real GDP Vs Electricity Demand Growth (% Change) Source: Singapore Department of Statistics Electricity Transmitted and Distributed (GWh) Revenue rose by 3.4 per cent in FY 09/10 due to higher electricity consumption. SP Annual Report 09 OPERATIONS REVIEW SP SERVICES Management 1 2 1 Mrs Jeanne Cheng Managing Director 2 Mr Lawrence Lee Director (Operations) 3 Ms Shirley Tan Lee Cheng Director (Customer Relationship Management) 4 Ms Lee Chui Ping Acting Director (Finance & Accounts) 3 4 38 Achieving customer service satisfaction is a priority. SP Annual Report 09 SP SERVICES A One-Stop Shop for Electricity, Water and Piped Gas Supplies SP Services provides every household and business in Singapore with a convenient and efficient one-stop service for electricity, water and piped gas supplies. As the Market Support Services Licensee, SP Services provides metering and billing services to the electricity market. It also facilitates competition in the retail market by enabling consumers to switch seamlessly between retailers and to buy electricity at wholesale market prices. For the convenience of customers, SP Services also provides metering, billing and payment collection, and customer service on behalf of other utility service providers, including PUB for water charges, City Gas for gas charges, and various refuse collection companies for refuse removal fees. In the year under review, SP Services continued to re-engineer operations and business processes aimed at increasing productivity and improving its services and operations to keep pace with the rising expectations and needs of customers. Tapping Technology to Enhance Services With modern technology changing the way people go about their daily lives, SP Services explored ways to improve its customer service, combining the use of technology with service innovation to cater to the needs of today’s IT-savvy customers. Through the Wireless Work Force Management System (WWMS), SP Services implemented the Work-From-Home Scheme for its field operations staff. Under the scheme, technicians receive their daily job orders for supply turn-on and cut-off through their Personal Digital Assistants (PDAs), which are connected to WWMS via GPRS at home. The Work-From-Home Scheme has also been extended to SP Services’ customer service staff. Staff at the Integrated Call Centre (ICC) can now attend to calls from their homes, accessing the same IT systems to process transactions for customer service accounts remotely. This enables the ICC to extend its operation hours beyond office hours, providing more accessibility to customers. SP Services implemented the Work-From-Home scheme for its field operations staff through the Wireless Workforce Management System. The implementation of the scheme led to an improvement in employee productivity by an average of 10 per cent. The higher productivity has resulted in cost savings while benefiting employees in terms of reduced travelling time and the flexibility of working from home. Currently, 51 field staff and another 17 customer service staff are under the Work-from-Home Scheme. The scheme has resulted in customer service being enhanced with extended service hours and shorter waiting time. Tapping on the widespread use of SMS messaging, SP Services has added SMS technologies as another avenue to reach customers. A residential customer may request for utility supplies turn-on via SMS and the date and time of the appointment would in turn be confirmed via SMS. The year also saw the successful completion of the pilot project for the SMS payment reminder service which would be extended to all customers. Delivering Service Excellence Demonstrating its strong commitment towards service excellence, SP Services achieved certification in SPRING Singapore’s Singapore Quality Class (SQC) and the Singapore Service Class (S Class), and the re-certification of the People Developer Standard (PDS). For demonstrating a high standard of service excellence in the SQC assessment, SP Services was conferred the SQC (Star) Award. The award recognises SP Services’ use of technology to achieve operational efficiency as well as the effective deployment of customer service strategies to achieve customer satisfaction. 39 SP Annual Report 09 OPERATIONS REVIEW 40 During the year, SP Services also retained its ISO 9001 certification for Quality Management System. Key business areas covered top management responsibilities, system maintenance, improvement processes, staff training and operations. Well-established quality control and processes and confident staff who demonstrated good knowledge of work procedures were but some of the key findings leading to SP Services retaining its ISO certification. SP Services’ efforts in providing a hassle-free service experience were well regarded by the expatriate community in Singapore. In a global survey of over 3,000 expatriates in over 50 countries about their quality of life and experience assimilating into a new culture away from home, Singapore topped the league table of 26 countries when it came to ease of setting up utilities accounts and supply. An overwhelming 82 per cent of expatriates here found it a hassle-free experience. Pursuing Service Excellence In FY 09/10, SP Services’ Customer Service Centre was relocated within the Woodlands Civic Centre. The new location saw the introduction of self-help kiosks where customers can access an array of utilities account services, including meter reading submission, updating mailing addresses, and application/termination of GIRO. Co-located with the SP Services’ Customer Service Centre at Somerset Road is the City Gas Gallery. This is a result of SP Services’ efforts to establish a win-win business proposition together with its utility service partner. This convenient onestop service hub now allows piped gas customers to arrange for turn-on or cut-off appointments, purchase gas appliances and arrange electricity and water supplies all at one location. Customers can access an array of utilities account services through the self-help kiosks at SP Services’ Customer Service Centre in Woodlands Civic Centre. SP Services also made the payment of utility bills even more convenient by expanding its payment channels to include iNets. Customers can now pay their utility bills via iNets Mobile using Nets Cheque, or at any of the iNets kiosks conveniently located island-wide at any time using NETS, NETS CashCard or NETS Flashpay. Broader Scope of Services As part of its efforts to promote the use of GIRO facilities, SP Services conducted a GIRO promotion for all existing and new GIRO/POSB Everyday Card customers from February to end May 2009 during which GIRO participation increased by more than 20 per cent, in comparison with previous months. The year under review also saw SP Services participate in the Energy Market Authority’s (EMA) Electricity Vending System (EVS) pilot project trial run. Initiated by EMA, the EVS tested the concept of an efficient retailing scheme to small consumers incorporating smart meter technologies and e-payment system. The project trial runs involving household volunteers at selected areas of Marine Parade and West Coast Group Representation Constituency were completed in November 2009. SP Services is also participating in an Intelligent Energy System (IES) pilot project launched by EMA in November 2009. The pilot project is aimed at testing and evaluating new applications and technologies around a smart grid to enable the rolling out of more innovative solutions for Singapore’s power system. During the year, SP Services, together with SP Global Solutions, provided consultancy and training services to utility companies in the region, including China and India. In the year ahead, SP Services will continue to provide advisory services to companies looking to improve their customer service management. As part of its continuing drive to improve performance, SP Services has embarked on a project to upgrade its Market Support Services Licensee (MSSL) System with the aim of expanding current system capabilities to enhance customer service and operational effectiveness. Rising to the Challenge In the years ahead, SP Services will, in its relentless pursuit of operational and service excellence, seek to leverage technology and draw the best from its people, complementing innovations in systems and processes while managing rising business costs. SP Annual Report 09 SP GLOBAL SOLUTIONS New Markets, New Opportunities SP Global Solutions (SPGS) is the consultancy and training arm of Singapore Power. Leveraging the expertise and knowledge within the SP group, SPGS offers consultancy and training to utilities clients in Singapore and overseas. FY 09/10 was a fruitful year for SPGS. New initiatives and collaborative efforts resulted in consultancy projects for new markets. New programmes were also developed to meet the training demand of different segments of customers in Singapore and beyond. 1 PARTNERSHIPS: In the year, SPGS established linkages with new partners overseas.These partnerships paved the way for new collaboration in projects undertaken by SPGS as well as in ongoing professional exchanges. An MOU was signed between SPGS and China Southern Power Grid Ltd (CSG), which manages the power networks in the rapidly-growing provinces of Guangdong, Guangxi, Yunnan, Guizhou and Hainan. 41 SPGS and Calcutta Electric Supply Corporation (CESC) collaborated to offer a range of joint programmes on Distribution Network Management for practitioners in the industry. The joint programmes were kicked off at a launch event in New Delhi, India. SP Annual Report 09 OPERATIONS REVIEW 2 TRAINING IN SINGAPORE: During the year, delegates from foreign utilities companies came to Singapore to participate in a variety of training programmes in technical competencies, services skills and system management. They included management and staff from utilities in China, India and Africa. Demonstration of Partial Discharge Mapping for cables. Practical training conducted outside of classrooms at distribution installations. An SP PowerGrid engineer conducted hands-on training on Condition Monitoring techniques for overseas trainees. A safety briefing conducted for overseas delegates at an outdoor deployment. 42 3 PROJECTS CONDUCTED OVERSEAS: Through customised training and consultancy projects, SPGS developed new initiatives in niche areas of expertise so as to reach new markets and to meet clients’ requirements. These included projects that assisted our partners in their preparation for significant large-scale events. SP PowerGrid engineers conducting Condition Monitoring tests in Johannesburg, South Africa. SP PowerGrid engineers conducting Condition Monitoring tests in Guangzhou, China. SP GLOBAL SOLUTIONS SP Annual Report 09 4 LOCAL INDUSTRY TRAINING: During the year, over a thousand participants from the local energy utilities sector attended various courses organised by the SP Training Institute (SPTI). Technical training by experienced instructors at the SPTI. 5 INTERACTIONS: As part of our continual interaction with friends and partners, SPGS coordinated and hosted delegations from various countries when they visited SP for professional exchange and exploration of collaboration. These interactions included delegations from China, India, Africa, Mongolia and New Zealand. Government officials from Mongolia during a visit to SP. 43 A delegation of government officials and industry representatives from New Zealand engaged in lively exchange of views and exploring possible collaborations with SP. OPERATIONS REVIEW New Control Room coordinates and controls the chilled water production and its distribution to customers intake stations. 44 SINGAPORE DISTRICT COOLING Partner in Energy Efficiency Singapore District Cooling (SDC) achieved positive NPAT of S$0.7 million for FY 09/10. Its revenue and EBITDA for the year rose to S$13.3 million and S$5.2 million respectively. SP Annual Report 09 Operations The aggregate supply capacity requirement declared by customers increased from 17.4 MWr in March 2009 to 68.7 MWr in March 2010. The increase was due primarily to the commencement of supplies to the Marina Bay Sands (MBS) in October 2009. FY 09/10’s Supply Availability Index (measured in terms of the ability to maintain supply temperature within specifications) was 99.99 per cent against the regulatory standard of 99.50 per cent. Business Development SDC completed its scope of work for commencement of supplies to MBS in August 2009, two months ahead of the actual turn-on to the first intake in the development in October 2009. In addition to chilled water, as a business enhancement, SDC also commenced the provision of hot water supplies to MBS under a separate heat supply agreement. Phase 1 of the Marina Bay Financial Centre (MBFC) also started receiving chilled water supplies from 1 April 2010. Another development, Asia Square, will require chilled water supplies from 2011. The technical scheme for the development was finalised during the year. SDC made significant progress in extending its services to premises outside the mandated zone. Keppel Land has signed the agreement for supplementary/back-up supplies for its Ocean Financial Centre to commence in January 2011. NParks has also committed to subscribing for the district cooling service to supplement its in-fence chiller plant for the Gardens by the Bay commencing in June 2011. Going Forward Demand for district cooling is expected to expand robustly in the next few years with the progressive completion of new developments in the new downtown. SDC’s primary focus in near term will be the continued building up of the district cooling system at Marina Bay Business District to serve developments in the mandated zone. For system operations, SDC will continue to ensure a high service level to its customers in an effort to build strong market credentials for the new utility service. SDC will continue its capability building for production optimisation. The operation of two district cooling plants as a coordinated system will create new opportunities for optimising production scheduling for lower production costs. SDC’s vision is to grow district cooling as an essential utility service in commercial districts in Singapore. It will continue its marketing effort to extend its service to existing buildings outside the mandated zone and work with government agencies for replicating the district cooling system in new business districts. COOLING DEMAND PROJECTION 45 250 MWr 200 150 100 50 Others Asia Square Ocean Financial Centre Marina Bay Financial Centre Marina Bay Sands One Raffles Quay 0 2009 2010 2011 2012 2013 2014 2015 Cooling demand is expected to robustly expand in the next few years with the progressive completion of developments in the new downtown. 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, New South Wales and Western Australia. SP Annual Report 09 OPERATIONS REVIEW SP AUSNET Management 1 3 5 2 4 6 1 Mr Nino Ficca Managing Director 2 Mr Charles Popple Group General Manager (Networks Strategy & Development) 3 Mr Norm Drew Group General Manager (Integrated Network Services) 4 Mr Geoff Nicholson Chief Financial Officer & General Manager (Finance & Strategy) 5 Ms Susan Taylor General Counsel & Company Secretary 6 Mr John Kelso General Manager (Select Solutions) 7 Ms Claire Hamilton General Manager (Risk and Assurance) 8 Ms Geraldine Leslie General Manager (People and Safety) 48 7 8 SP Annual Report 09 SP AUSNET Victoria’s largest diversified energy infrastructure business As the owner and operator of Victoria’s electricity transmission network and two distribution networks, SP AusNet is committed to enhancing network safety and reliability for its customers, employees and the communities in which it operates. SP AusNet’s infrastructure delivers energy to more than one million customers across Victoria, with approximately 87 per cent of revenue coming from the operation of these regulated assets. Following the establishment last year of Select Solutions, a consolidated commercial arm focused on emerging technologies and solutions, SP AusNet continued to build on and expand its non-regulated service-based businesses. The multi-million dollar Hazelwood Terminal Station 500kV circuit breaker and current transformer replacement project will replace infrastructure at this key terminal station, which is on the 500kV transmission backbone between the Latrobe Valley and Melbourne. Most of the power generated in the Latrobe Valley is transmitted via Hazelwood Terminal Station to the load centre in Melbourne. Electricity Transmission The Victorian transmission network, owned and operated by SP AusNet, consists of more than 6,500 km of transmission lines carrying electricity from power stations to electricity distributors and large customers around Victoria. The network is centrally located among Australia’s five eastern states that form the National Energy Market, providing key connections between South Australia, New South Wales and Tasmania’s electricity transmission networks. In FY 09/10, the electricity transmission network contributed A$531.3 million in regulated revenue to SP AusNet’s financial performance. SP AusNet invested A$162.5 million to improve network performance on the transmission system during the year. 49 Upgrades and Extensions As part of ongoing efforts to upgrade and augment the electricity transmission network to meet demand, SP AusNet successfully completed a A$9 million project at the Cranbourne Terminal Station. More than 110,000 Victorians benefited from the upgrade. In November 2009, SP AusNet connected the Bogong Hydro Power Station to its electricity transmission network which, as part of the larger Kiewa hydroelectric scheme, creates an additional 94,000 MWh of renewable electricity each year. SP AusNet’s electricity transmission network delivers power to regional Victoria as well as Melbourne’s CBD. SP Annual Report 09 OPERATIONS REVIEW Electricity Distribution The 47,000 km electricity distribution network carries electricity from SP AusNet’s transmission network to substations for distribution to approximately 620,000 connected electricity customers in outer eastern metropolitan Melbourne and eastern Victoria across an area of approximately 80,000 square kilometres. In FY 09/10, the electricity distribution network contributed A$626.2 million in revenue to SP AusNet’s financial performance, and distributed 7,780 GWh of electricity. SP AusNet invested approximately A$350.6 million in capital expenditure to extend SP AusNet’s electricity distribution network and improve its performance, further connecting 11,417 new customers across eastern Victoria. Performance and Reliability Even as SP AusNet continues to invest in strengthening and upgrading its electricity distribution network, a number of severe weather events during the year caused service disruptions to customers. To reduce the impact of such storm-related interruptions, SP AusNet is reinforcing its focus on the S-Factor reliability programme to assist in the delivery of safe and continuous electricity supply. The ability for smart meters to measure energy consumption remotely every 30 minutes means customers will be able to manage their energy use more efficiently. This will also allow SP AusNet to better oversee its electricity distribution network. Gas Distribution SP AusNet’s 9,757 km of gas distribution and transmission pipeline networks deliver natural gas to more than 572,000 customers across 60,000 square kilometres of central and western Victoria. In FY 09/10, the gas distribution network contributed A$190.8 million in revenue and distributed 71.4 PJ of gas. SP AusNet invested A$67.6 million to expand the network and connected 17,181 new customers across central and western Victoria. Upgrades and Extensions As part of its commitment to the replacement of aged low pressure gas assets, SP AusNet invested more than A$10 million in its gas mains renewal programme during the year to enhance the safety and reliability of the natural gas network. 50 The recent introduction of a number of network ‘self-healing’ schemes, known as Distribution Feeder Automation (DFA), will continue to see SP AusNet deliver electricity to customers with greater reliability. SP AusNet is the first Australian electricity distribution business to implement fully-automated DFA schemes, which enable the network to respond to momentary faults and transfer supply on the network automatically and remotely within 60 seconds. Smart Meters In late 2009, SP AusNet commenced the rollout of smart meters to all residential and small business customers in its electricity distribution network, as mandated by the Victorian Government. SP AusNet is on track to having more than 680,000 smart meters installed by the end of 2013, with over 19,000 already installed in Melbourne’s northern suburbs. SP AusNet apprentice Alex Gray assists with undergrounding electricity cables in a new housing development. SP AUSNET SP Annual Report 09 SP AusNet carries out extensive maintenance work to ensure a reliable supply of energy throughout the year. Select Solutions The establishment of Select Solutions brought together existing niche services into one SP AusNet division, which continues to deliver non-regulated end-to-end services to utilities, government, energy and water retailers, and commercial and industrial customers. Select Data and Measurement Solutions under the Selection Solutions group is managing the installation of 680,000 smart meters across SP AusNet’s electricity distribution network, ensuring the installations meet all operational and market requirements involved in the collection of meter data for SP AusNet. Following long-term agreements reached with Jemena in 2009, the Select Utility Solutions group under the Selection Solutions group has been successfully providing asset management services to the utility. These services include managing Jemena’s conductor assessment programme using a 21-metre Hi-Mast to inspect 3,500 poles. This industry-leading inspection technique allows optical zoom high resolution photographic inspection and accurate assessment of the condition of Jemena’s assets. Safety SP AusNet is a major employer with 1,500 employees located across Victoria, often in the local communities in which it operates. The safety and well-being of SP AusNet’s people is a top priority, so there is a commitment to ensuring a safe workplace for all employees and a safe environment for the communities in which it operates. A key measure of safety performance is the Recordable Injury Frequency Rate, which measures lost time and medical treatment injuries on a rolling 12-month basis. The company achieved a result of 11.12 against a target of ≤18. A safety observation programme was introduced in FY 09/10, based on the belief that everyone is responsible for leading safety and that together they seek out and correct all unsafe behaviours and situations whilst aiming for zero injuries. This programme is part of SP AusNet’s safety plan implemented after the engagement of safety experts DuPont. This is a lead indicator of safety and has assisted in bringing down the number of reportable incidents. 51 SP Annual Report 09 OPERATIONS REVIEW SPI (AUSTRALIA) ASSETS / JEMENA Management 1 Mr Paul Adams Managing Director 2 Mr Lim Howe Run Deputy Managing Director 1 3 5 2 4 6 3 Mr Tony Beach Executive General Manager (Asset Strategy) 4 Mr Patrick Patterson Executive General Manager (Infrastructure Services) 5 Ms Joanne Pearson Chief Financial Officer 6 Dr Shaun Reardon Executive General Manager (Infrastructure Investments) 7 Mr David Clerk Executive General Manager (Strategy & Business Development) 8 Ms Jodie Blake Executive General Manager (People, Safety and Services) 9 Ms Tina Ooi General Counsel & Company Secretary 52 7 8 9 SP Annual Report 09 SPI (AUSTRALIA) ASSETS / JEMENA Growing Capabilities and Developing Possibilities A number of significant objectives were accomplished for SPI (Australia) Assets Pty Ltd and its Jemena subsidiaries in FY 09/10. Overall business activity was focused on a number of strategic priorities, including optimising its core business, pursuing new growth paths and strengthening customer focus. Achieving ‘Zero Harm, Safety First’ remained a priority through the implementation of a behavioural driven approach to safety. A New Organisational Structure On 1 April 2009, Jemena began operating under a new organisational structure, designed to build a stronger commercial and customer service focus for the business. The new structure is a step towards growing the contracting services business by ensuring it is focused on understanding customer needs and the costs of delivering high quality service. The new structure also brings out the focus on safety and ensures the creation of long term value for the assets Jemena owns and manages. In preparation for its revised Access Arrangement submission, JGN successfully applied to the Australian Competition Tribunal to have its transmission pipelines connecting Sydney, Newcastle and Wollongong reclassified as distribution pipelines for the purposes of access regulation. This reclassification will enable JGN to price its distribution services more efficiently and in a manner compatible with the Short Term Trading Market to be introduced in 2010. Jemena Electricity Network (JEN) In FY 09/10, the JEN electricity distribution network contributed A$208.5 million in revenue (net cost of sales) and distributed 4,419 GWh of energy. Demand for connections to the network was very strong with A$30.2 million being invested to meet demand for customer initiated projects. In addition A$41.3 million was invested to maintain reliability and capacity in the network. The customer base continued to grow with the connection of 4,416 new customers. 53 Jemena Gas Network (JGN) In FY 09/10, the gas distribution network contributed A$381.9 million in revenue and distributed 97.4 PJ of gas. A significant investment of A$98.2 million was made 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 28,986 new customers. Replacing a pole in Melbourne. SP Annual Report 09 OPERATIONS REVIEW Working on the expansion of the QGP. 54 New Growth Paths In 2009, Jemena secured significant wins in the Tasmanian market, including a place on the Transend Networks Pty Ltd panel, which provided Jemena with the opportunity to undertake substation design and construction work over the next five years. Transend owns and operates the electricity transmission system in Tasmania. In addit

SUSTAINABLE SOLUTIONS SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINABLE SOLUTIONS At Singapore Power, our relentless drive to excel is fuelled by our desire to best meet the needs of our customers. We make every effort to provide reliable and efficient power to people, industries and communities by investing in our talent, technology and infrastructure. Anchored by principles of safety, accountability and continuous improvement, we constantly look ahead to ensure the performance and outcomes of today can stand the test of time and serve the nation’s evolving needs, with solutions that can sustain our community well into the future. CONTENTS From the Chairman 6 / Financial Highlights 10 / Group Structure 11 / Board of Directors 12 Senior Management 17 / Corporate Governance 18 / Risk Management 21 Awards & Accolades 22 / Sustaining Reliability and Efficiency 24 / Sustaining Service Excellence 38 Sustaining Our Talent 46 / Sustaining Our Community 54 / Financial Summary 61 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. THE SINGAPORE POWER GROUP Singapore Power (SP) Limited is a leading energy utility company in Asia Pacific. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia. The SP Group is wholly owned by Temasek Holdings (Private) Limited. Over a 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, the SP Group serves 2.8 million consumers through 40%-owned SGSPAA, a diversified energy utility company, and 31.1%-owned AusNet Services, which is publicly listed on the Australian and Singapore Stock Exchanges. As one of Singapore’s largest corporations, SP recorded revenue of S$4.8 billion and assets of S$17.0 billion in FY 13/14. PETER LEONG Managing Director
 SP PowerGrid YAO DAILIN, PhD Executive Engineer Asset Management, Electricity SP PowerGrid LIAN JUNYUE Executive Engineer
 Gas Operations SP PowerGrid TAN HUNG KHING Principal Engineer Network Development, Electricity SP PowerGrid POWERING JURONG ISLAND Home to many of the world’s leading energy and chemical companies, Jurong Island is the lynchpin of Singapore’s success as a global chemicals hub. Singapore Power ensures that the growing energy needs at Jurong Island are met. Driving the ongoing developments on Jurong Island is the recently commissioned 230/66kV Tembusu Substation – the first substation in Singapore to be installed with 230kV series reactors, which will reduce the fault currents in the network and increase power resilience. In addition, the West Jurong Island 400 kV Substation, scheduled to be commissioned in 2019, will further boost the reliability and efficiency of the network. SP is also constructing a 5.2-kilometre undersea transmission cable tunnel that will transmit electricity from the power plants on Jurong Island to consumers throughout the nation. SP is also working to connect the LNG Terminal on Jurong Island to the gas transmission network so that more customers will have access to this latest source of gas supply. 6 SINGAPORE POWER ANNUAL REPORT 2013/14 FROM THE CHAIRMAN Singapore Power plays an important role by providing safe and reliable utility services, supporting the economy and enhancing the quality of life of people. We are committed to building reliable networks and bringing quality services safely and efficiently to our stakeholders. FINANCIAL PERFORMANCE Group net profit (excluding exceptional items) for the year was S$920 million, an increase of S$42 million from the previous year contributed by the strong operating performance from all our businesses. During the year we completed the re-balancing of our portfolio by reducing our investments in Australia. In May 2013, we signed two separate agreements with State Grid International Development Ltd. of China to divest 60 per cent of our shareholding in SPI (Australia) Assets Pty Ltd (SPIAA) and 19.9 per cent security holding in SP AusNet. Upon completion of these transactions in January 2014, our Australia portfolio is now 22 per cent of the Group’s assets compared to 70 per cent as at 31 March 2013. Group debt decreased to $4 billion from $17 billion at 31 March 2013. Moving forward, we will continue to focus on delivering value through driving capital efficiency and enhancing productivity, as well as through strategic investments. Our electricity, gas and cooling businesses provide the launch pads for significant growth. Internationally, having established our reputation and with a partner with exceptional capabilities, Australia will remain a prime area of our growth strategy, even as we explore new geographies for expansion. SERVICE EXCELLENCE For the year ended 31 March 2014, the average electricity customer in Singapore experienced an interruption of 0.74 minutes and for gas customers, the average interruption to service was 0.59 minutes, making Singapore’s power and gas networks amongst the most reliable in the world. Our subsidiary, Singapore District Cooling (SDC), delivered 100 per cent reliability with no disruptions throughout the year. SDC is the largest underground district cooling network in the world, providing chilled water supply for air-conditioning exclusively to the Marina Bay district, including Marina Bay Sands, Marina Bay Financial Centre, and Gardens by the Bay. SINGAPORE POWER ANNUAL REPORT 2013/14 7 SINGAPORE EXPERIENCES THE FEWEST AND SHORTEST ELECTRICITY OUTAGES WORLDWIDE MINUTES PER CUSTOMER 200 SYSTEM AVERAGE INTERRUPTION DURATION INDEX (SAIDI) AVERAGE DURATION OF UNPLANNED INTERRUPTIONS A CONSUMER EXPERIENCES IN A YEAR (2013) 175.9 150 115.4 127.0 134.5 100 50 0 0.7 2.3 5.0 7.0 7.9 12.2 14.3 19.1 23.2 36.5 43.1 45.4 46.7 49.6 49.9 50.5 61.7 64.6 68.7 75.0 75.0 Singapore Hong Kong Tokyo Osaka Frankfurt Rotterdam New York City Taipei Amsterdam Milan Manchester Manila Bangkok London Rome Melbourne Toronto Kuala Lumpur Seattle Paris San Diego San Francisco Dublin East Victoria West Victoria Source: DNV GL, 2014 During the year, we achieved a key milestone in implementing a smart metering system in Singapore, including an island-wide communication network. The system will progressively enable consumers to buy electricity directly from the wholesale electricity market or from retailers. From 1 April 2014, consumers using 8,000kWh or more a month could purchase electricity from the competitive market, and by 1 October 2014, this will be extended to consumers using 4,000kWh or more. This is a key step to supporting the government’s policy to provide competition and choice for consumers. To enhance customer experience, a smart phone app built on the existing app that enables customers to submit their own meter readings was made available for the public to provide feedback on electricity or gas supply matters. In a further step to empower the customer and improve service experience, consumers with e-billing accounts can now compare their electricity consumption against the average consumption of their neighbours. Technology has enabled new dimensions to service experience, and we will continue to develop new and innovative ways to engage customers. EFFICIENCY AND PRODUCTIVITY Our world-class reliability and service standards were achieved through continuous investments in systems and infrastructure. As we upgrade the aging assets and expand networks to meet Singapore’s growing demand, we strive to do so efficiently for the benefit of our consumers. To validate that Singapore consumers pay competitive prices, and to instill operating and commercial discipline, we engaged independent consultants to benchmark our performance. In 2013, Det Norske Veritas’s (DNV) benchmarking study ranked SP Services top in service excellence. In 2014, DNV also conducted a benchmarking study on SP PowerAssets (SPPA) and concluded that SPPA’s operating efficiency surpasses major international utilities. 8 SINGAPORE POWER ANNUAL REPORT 2013/14 FROM THE CHAIRMAN SERVICE COMMITMENT: ONE CALL, ONE CLICK, ONE STOP, ONE BUSINESS DAY WORKING DAYS 16 12 TIME TAKEN TO INSPECT AND TURN ON PRE-TESTED ELECTRICAL INSTALLATION 14 8 4 0 1 2 2 3 3 5 6 7 8 9 Singapore Hong Kong Portugal USA USA Italy Spain Malaysia Hungary Slovenia Austria Source: DNV KEMA, 2013 TALENT DEVELOPMENT We continue to recruit and develop a strong, dynamic and forward looking workforce. A key initiative to attract and develop talent for the power sector was the launch of the Singapore Power Nithiah Nandan ITE and Polytechnic Scholarship for engineering students, our first scholarship for ITE and Polytechnic students. The inaugural batch of 22 scholars received their awards earlier this year. They can look forward to various development opportunities and sponsorship for further studies, as they advance in their careers with SP. The Engineering Development for Graduates (EDGE) Programme welcomed its second batch of fresh engineering graduates this year, bringing the total number of engineers under the programme to 58. This unique programme aims to develop a sustainable pipeline of engineering talent within the organisation through structured training and exposure to key business operations, leading to a Professional Engineer accreditation and leadership opportunities. SAFETY AND COMMUNITY The safety of our people, our contractors and our community is critical to us. During the year, we established a Management Safety Committee (MSC), chaired by the Group CEO. The MSC sets strategic directions and oversees safety improvement efforts. Our commitment to safety is further underscored by the formation of a new Group Safety and Health unit to spearhead safety initiatives across the Group. A Safety Policy and Safety Pledge were also introduced to our staff and contractors. Amongst various initiatives, we increased public safety measures by building two roads for heavy construction vehicles to access our May Road and Kallang construction sites directly from the expressways, in order to bypass nearby residential areas and schools. Formulated in consultation with community stakeholders, this move was well received. In our efforts to contribute to the well-being of the greater community, we are proud to be a lead SINGAPORE POWER ANNUAL REPORT 2013/14 9 CONSUMERS IN SINGAPORE ENJOY VALUE FOR MONEY kWh/SGD POWER DISTRIBUTED PER DOLLAR OF OPERATING EXPENSE 200 150 166.7 100 116.5 50 0 14.4 17.9 32.8 38.9 44.4 47.3 54.4 San Diego G&E ConEd Seattle City Light TEPCO TNB CLP CenterPoint Energy EDF London SPPA Source: DNV GL, 2014 partner in the nationwide Stay Prepared Starter Kits programme with Temasek Cares and Singapore Post, to empower individuals and families to stay prepared for emergencies. SP and SingPost delivered an emergency starter kit comprising three N95 masks to every household in Singapore in the first week of May 2014. SP volunteers also delivered over 400,000 starter kits to 144 charity homes, 86 constituencies and 37 foreign worker dormitories. During the year, SP raised over $1 million for the SP Heartware Fund. The SP Heartware Fund supports the needy elderly under the Home Help Service programmes. From this year, we have expanded the support to all 26 elderly programmes managed by the Community Chest. With the expansion of the Fund’s coverage, Singapore Power will be able to assist over 31,000 beneficiaries through elderly social service programmes such as dementia day care, hospice care, community homes and caregiver support. IN APPRECIATION On behalf of the Board of Directors, I would like to express my appreciation to the Management and staff, UPAGE, regulators and government agencies in Singapore and Australia. I would like to place on record our thanks and appreciation to Mr Alan Chan, Mr Bobby Chin and Prof Jeremy Davis, who retired from the Board on 16 June 2014, for their contributions to the company. I would like to welcome Mr Timothy Chia and Mr Ng Kwan Meng to the Board and look forward to their contribution. Together with our stakeholders, we look forward to continued growth by creating sustainable solutions to enhance the economy and quality of life. MOHD HASSAN MARICAN Chairman September 2014 10 SINGAPORE POWER ANNUAL REPORT 2013/14 FINANCIAL HIGHLIGHTS REVENUE FROM CONTINUING OPERATIONS ($million) TOTAL ASSETS ($million) 6,000 5,000 4,000 40,000 4,685^ 4,942^ 4,793 32,366 30,000 34,456 3,000 2,000 1,000 20,000 10,000 16,991 0 FY11/12 FY12/13 FY13/14 0 FY11/12 FY12/13 FY13/14 NET PROFIT AFTER TAX ($million) SHAREHOLDERS’ EQUITY ($million) 1,000 800 930 878* 920 10,000 8,000 8,336 8,464 9,219 600 6,000 400 4,000 200 2,000 0 FY11/12 FY12/13 FY13/14 FY11/12 FY12/13 FY13/14 0 ECONOMIC VALUE ADDED (EVA) ($million) RETURN ON EQUITY (%) 400 20 300 200 339 257 235 15 10 11.5% 10.5%* 10.6% 100 5 0 FY11/12 FY12/13 FY13/14 0 FY11/12 FY12/13 FY13/14 ^ Restated * Exclude exceptional items on impairment SINGAPORE POWER ANNUAL REPORT 2013/14 11 GROUP STRUCTURE SINGAPORE OPERATIONS AUSTRALIA OPERATIONS SP POWERASSETS SINGAPORE DISTRICT COOLING (60%) AUSNET SERVICES (31.1%) SP CROSS ISLAND TUNNEL TRUST SP TRAINING AND CONSULTANCY COMPANY SGSP (AUSTRALIA) ASSETS (40%) POWERGAS SP TELECOMMUNICATIONS SP POWERGRID POWER AUTOMATION (51%) SP SERVICES SINGAPORE OPERATIONS We own and operate the Singapore 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 is a joint-venture company providing 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 jointventure systems integration company providing power system control, smart grid/metering, protection system and substation automation solutions. AUSTRALIA OPERATIONS AusNet Services and SGSP (Australia) Assets (SGSPAA) 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. AusNet Services (formerly known as SP AusNet) owns and operates Victoria’s electricity transmission network, an electricity distribution network in eastern Victoria, and a gas distribution network in western Victoria. SGSPAA comprises Jemena, which owns and operates gas transmission pipelines, 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. 12 SINGAPORE POWER ANNUAL REPORT 2013/14 BOARD OF DIRECTORS TAN SRI MOHD HASSAN MARICAN 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, 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. ALAN CHAN HENG LOON Mr Alan Chan Heng Loon was a Director from June 2001 till 16 June 2014. He was formerly the Chairman of SP PowerAssets Ltd and PowerGas Limited. Mr Chan is the Chief Executive Officer of Singapore Press Holdings Ltd. He sits on the boards of Singapore Press Holdings Ltd and its subsidiaries, MediaCorp TV Holdings Pte Ltd and MediaCorp Press Ltd. Mr Chan is the Chairman of the External Review Panel on SAF Safety; Chairman of the Singapore- China Foundation, a member of the Public Service Commission and the Centre for Liveable Cities Distinguished Advisors Panel; and a Director of Business China, and the Lee Kuan Yew Fund for Bilingualism. He also serves on the boards of the Federation Internationale of Periodics Publishers and World Association of Newspapers – IFRA. Mr Chan was formerly the Permanent Secretary for the Ministry of Transport. He chaired the Council that reviewed the Code of Corporate Governance in 2012. Mr Chan was awarded the Public Administration Medal (Gold) in 2002 and the Meritorious Service Medal at the 2012 National Day Awards. HO TIAN YEE Mr Ho Tian Yee joined the Board in May 2003. He is also a Director of AusNet Services (formerly known as SP AusNet). Mr Ho is the Managing Director of Pacific Asset Management (S) Pte Ltd. He is appointed as Investment Advisor of Blue Edge Advisors Pte Ltd and holds directorships in publicly-listed companies including DBS Group Holdings Ltd and DBS Bank Ltd. He is also a Director of Fullerton Fund Management Co Ltd and was formerly a Director of Fraser and Neave Ltd and Singapore Exchange Ltd. Mr Ho has over 30 years’ experience in managing global financial products and in organisational management. He was awarded the Public Service Medal in 1997. SINGAPORE POWER ANNUAL REPORT 2013/14 13 TAN CHEE MENG Mr Tan Chee Meng joined the Board in August 2005. A Senior Counsel, Mr Tan is the Deputy Managing Partner of WongPartnership LLP. Mr Tan sits on the boards of Urban Redevelopment Authority, Jurong Town Corporation, St Gabriel’s Foundation, All Saints Home and WOPA Services Pte Ltd. He is also the Chairman of the School Management Committee of Assumption English School. Mr Tan was a Director of SGSP (Australia) Assets Pty Ltd (formerly known as SPI (Australia) Assets Pty Ltd) and Mapletree Commercial Trust Management Ltd. BOBBY CHIN YOKE CHOONG Mr Bobby Chin Yoke Choong was a Director from January 2006 till 16 June 2014. He is the Deputy Chairman of NTUC Enterprise Co-operative Ltd, the Chairman of NTUC Fairprice Co-operative Ltd, a Director of the Singapore Labour Foundation and Temasek Holdings (Private) Ltd. He is also a board member of various listed companies including AV Jennings Ltd, Yeo Hiap Seng Ltd, Ho Bee Land Ltd, Sembcorp Industries Ltd and Singapore Telecommunications Ltd. He was appointed to the Council of Presidential Advisers in January 2010. 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, Chairman of the Singapore Totalisator Board from 2006 to 2012, and a Director of Oversea-Chinese Banking Corporation Ltd from October 2005 to April 2014. PROFESSOR JEREMY GUY ASHCROFT DAVIS AM Professor Jeremy Guy Ashcroft Davis was a Director from August 2006 till 16 June 2014. Professor Davis is the Chairman of UNSW Professorial Superannuation Pty Ltd and the Deputy Chairman of AMWIN Management Pty Ltd. He is also a Director of CHAMP Ventures Pty Ltd. He was the former AMP Society Professor at the Australian Graduate School of Management. Professor Davis spent 10 years as a management consultant with the Boston Consulting Group. He was also Chairman of AIDC Ltd and Amdel Holdings Pty Ltd; and Director of the Transurban Group and AusNet Services (formerly known as SP AusNet). 14 SINGAPORE POWER ANNUAL REPORT 2013/14 BOARD OF DIRECTORS CHOI SHING KWOK 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 also the Chairman of PowerGas Ltd and a Director of SP PowerAssets Ltd until he retired from the boards in April 2014. 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. OON KUM LOON Mrs Oon Kum Loon joined the Board in April 2010. She is also a Director on the boards of Keppel Corporation Ltd and Keppel Land Ltd. She was a Director of SP PowerAssets Ltd and PowerGas Ltd until she retired from the boards in April 2014. Mrs Oon is a member of the Securities Industry Council. 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. TAN PUAY CHIANG Mr Tan Puay Chiang joined the Board in April 2012. He is also a Director of SP Services Ltd. Mr Tan’s other board memberships include Neptune Orient Lines Ltd, Keppel Corporation Ltd, and the Energy Studies Institute at the National University of Singapore. Mr Tan was Chairman, 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 has 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. SINGAPORE POWER ANNUAL REPORT 2013/14 15 ONG YEW HUAT Mr Ong Yew Huat joined the Board in February 2013. He is the Chairman of the National Heritage Board, Singapore Tyler Print Institute and the Tax Academy of Singapore. He also serves on the boards of United Overseas Bank Ltd and United Overseas Bank Berhad. Mr Ong is the Chairman of the Tax Academy of Singapore. 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. He was awarded the Public Service Medal in 2011. TIMOTHY CHIA CHEE MING Mr Timothy Chia joined the Board in June 2014. Mr Chia is Chairman of Gracefield Holdings Ltd and Hup Soon Global Corporation Ltd. A Senior Advisor of EQT Funds Management Ltd, JM Financial Singapore Pte Ltd and Chairman – Asia for Coutts & Co. Ltd, Mr Chia also serves on the boards of several private and public-listed companies, including Banyan Tree Holdings Ltd and Fraser & Neave Ltd. Mr Chia is a member of the Board of Trustees of Singapore Management University. 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 from 1982 to 1986 and as President of Unithai Oxide Company Ltd from 1980 to 1981. From 2009 to 2011, he was Chairman – Asia for UBS Investment Bank. 16 SINGAPORE POWER ANNUAL REPORT 2013/14 BOARD OF DIRECTORS NG KWAN MENG Mr Ng Kwan Meng joined the Board in June 2014. 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. WONG KIM YIN 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, SPI Management Services Pty Ltd and Enterprise Business Services (Australia) Pty Ltd as well as a Director of SP Services Ltd. 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. SINGAPORE POWER ANNUAL REPORT 2013/14 17 SENIOR MANAGEMENT IN ALPHABETICAL ORDER PAUL ADAMS 1 Managing Director Jemena AMELIA CHAMPION Head Corporate Affairs JEANNE CHENG Managing Director SP Services LENA CHIA 2 Chief Legal Officer & General Counsel MICHAEL CHIN Managing Director Special Projects SP PowerGrid CHUAH KEE HENG Head Strategic Development NINO FICCA 1 Managing Director AusNet Services MADALENE HEE Head Internal Audit JIMMY KHOO Managing Director Singapore District Cooling PETER LEONG Managing Director SP PowerGrid LIM CHOR HOON Head Human Resource LIM HOWE RUN Head Regulatory Management and Strategic Investments LIM LAY HONG Chief Financial Officer CHRIS LIM Managing Director SP Training and Consultancy Company SIM KWONG MIAN Executive Vice President Chairman, SP Engineering Board HELEN TAY 3 General Counsel & Company Secretary SAMUEL TSO 4 Head Group Safety and Health WONG CHIT SIENG Chief Information Officer WONG KIM YIN Group Chief Executive Officer 1 Till 3 January 2014 2 From 1 July 2014 3 Till 30 June 2014 4 From 2 June 2014 18 SINGAPORE POWER ANNUAL REPORT 2013/14 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 meets at least four times a year to review the Group’s business performance. Special Board meetings may be convened as and when necessary to consider urgent corporate actions or specific issues of importance. During the financial year, the Board met four times and held a Board Strategic Review in October 2013. 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. The Directors may also 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 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. The Board comprised 11 members during the financial year. The current Board size is 10 and 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 Management. These are the Audit Committee, the Board Risk Management Committee, the Board Executive Committee (formed on 1 April 2014), the Finance Committee (dissolved on 1 April 2014), 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 are formed to provide support and guidance to Management. AUDIT COMMITTEE During the financial year, the Audit Committee (AC) comprised four independent Directors. Currently, the 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. SINGAPORE POWER ANNUAL REPORT 2013/14 19 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 accounts of the Group and the Company; • Review of the independence and objectivity of the external auditors; and • Nomination of external auditors for re-appointment. The AC holds at least three meetings a year. BOARD RISK MANAGEMENT COMMITTEE During the financial year, the Board Risk Management Committee (BRMC) comprised six independent Directors. Currently, the 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 • the policies, procedures and methodologies for identifying, assessing, quantifying (where appropriate), monitoring and managing 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 meets at least three times a year. FINANCE COMMITTEE The Finance Committee (FC) comprised four Directors, three of whom were independent Directors. The responsibilities of the FC were to consider and endorse, for the Board’s approval, SP’s annual operating and capital expenditure budgets, and business and financing plans; and approve or endorse SP’s borrowing and financing-related matters. The FC was subsequently dissolved on 1 April 2014, and its responsibilities have been subsumed under the recently constituted Board Executive Committee (ExCo). BOARD EXECUTIVE COMMITTEE The ExCo comprises five Directors, four of whom are independent Directors. The ExCo assists the Board to oversee 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 meets at least four times a year. NOMINATING COMMITTEE The Nominating Committee (NC) comprises four Directors, all of whom are independent Directors. 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 concerning 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 Articles of Association of the Company. The Articles of Association of the Company also require not less than one-third of Directors to retire by rotation at every AGM. The NC meets at least twice a year. 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 meets at least twice a year. 20 SINGAPORE POWER ANNUAL REPORT 2013/14 CORPORATE GOVERNANCE COMPOSITION OF BOARD AND BOARD COMMITTEES (AS AT 16 JUNE 2014) Staff Board^ Board Risk Development & Audit Executive Management Nominating Compensation Board Members Committee Committee Committee Committee Committee Tan Sri Mohd Hassan Marican 1 , Chairman – Chairman – Member Chairman Mr Alan Chan Heng Loon 2 – – – Mr Ho Tian Yee 3 – Member Chairman – – Mr Tan Chee Meng 4 Member Member Chairman – Mr Bobby Chin Yoke Choong 5 – – – Prof Jeremy Guy Ashcroft Davis 6 – – – Mr Choi Shing Kwok Member – – Member – Mrs Oon Kum Loon 7 Member – Member – Member Mr Tan Puay Chiang 8 – Member Member – – Mr Ong Yew Huat 9 Chairman – – Member – Mr Timothy Chia Chee Ming 10 – – Member – Member Mr Ng Kwan Meng 11 Member – – – Member Mr Wong Kim Yin 12 non–independent – Member Ex-officio – – ^ Formed on 1 Apr 2014. 1 Tan Sri Mohd Hassan Marican was appointed as Chairman of the ExCo on 1 Apr 2014. 2 Mr Alan Chan Heng Loon retired as a Director of the Board and ceased to be Chairman of the NC and a member of the SDCC on 16 Jun 2014. 3 Mr Ho Tian Yee was appointed as a member of the ExCo on 1 Apr 2014. 4 Mr Tan Chee Meng stepped down as a member of the BRMC on 1 Apr 2014. He was appointed as a member of the ExCo and Chairman of the NC on 1 Apr 2014 and 16 Jun 2014 respectively. 5 Mr Bobby Chin Yoke Choong retired as a Director of the Board and ceased to be a member of the NC and the SDCC on 16 Jun 2014. 6 Prof Jeremy Davis retired as a Director of the Board and ceased to be a member of the AC and the BRMC on 16 Jun 2014. 7 Mrs Oon Kum Loon was appointed as a member of the AC on 16 Jun 2014. 8 Mr Tan Puay Chiang was appointed as a member of the ExCo on 1 Apr 2014. 9 Mr Ong Yew Huat was appointed as a member of the NC on 16 Jun 2014. 10 Mr Timothy Chia was appointed as a Director of the Board and a member of the BRMC and the SDCC on 16 Jun 2014. 11 Mr Ng Kwan Meng was appointed as a Director of the Board and a member of the AC and the SDCC on 16 Jun 2014. 12 Mr Wong Kim Yin was appointed as a member of the ExCo on 1 Apr 2014. SINGAPORE POWER ANNUAL REPORT 2013/14 21 RISK MANAGEMENT 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 BRMC. 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 RISK MANAGEMENT INITIATIVES IN FY13/14 • Enhancement of existing risk management processes • Implementation of the Risk Information Management System • Review of IT risks – Cyber Security & Personal Data Protection Act Compliance • Review of Group insurance policies • Review of SP PowerGrid’s key operational risks – Capex Execution & Tunnel Construction • Review of SP Services’ business risks, including Full Retail Contestability 22 SINGAPORE POWER ANNUAL REPORT 2013/14 AWARDS & ACCOLADES 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 Singapore Quality Class Certification (STAR) SP Services by SPRING Singapore, 2010 to 2014 Singapore Service Class Certification SP Services by SPRING Singapore, 2010 to 2014 People Developer Standard by SPRING Singapore Singapore Power, 2000 to 2017 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, 2008 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 17025:2005 in Calibration and Measurement for Gas Flow Meters PowerGas by the Singapore Accreditation Council – Singapore Laboratory Accreditation Scheme, 2005 to present BS OHSAS 18001:2007 Certification for Occupational Health & Safety Management System Singapore District Cooling by TÜV SÜD PSB Pte Ltd, 2008 to 2014 SP PowerGrid, 2005 to 2017 SP Services, 2005 to 2015 SINGAPORE POWER ANNUAL REPORT 2013/14 23 Utility of the Year Award, 5 th Annual Asia Power & Electricity Awards SP Services by Terrapinn, 2014 Smart Grid Project of the Year Award, Asian Power Awards Singapore Power Group by Charlton Media Group, 2014 Minister’s Honour Roll (Star) Singapore Power Group by the Ministry of Home Affairs, 2013 to 2018 Minister for Defence Award Singapore Power Group by the Ministry of Defence, 2005 to 2015 Plaque of Commendation (Gold), May Day Awards Singapore Power Group by National Trades Union Congress, 2014 Singapore H.E.A.L.T.H. Platinum Award Singapore Power Group by the Health Promotion Board, 2004 to 2014 Special Events Platinum Award Singapore Power Group by the Community Chest, 2014 SHARE Corporate Silver Award Singapore Power Group by the Community Chest, 2014 From Left: Lim Beng Chuan, Technical Officer, Network Management, Electricity
 and Shawn Cham Say Hong,
Principal Engineer,
Network Management, Electricity
 SUSTAINING RELIABILITY AND EFFICIENCY 10,794 substations delivering electricity to all in Singapore North-South and East-West Transmission Cable Tunnels 3,305km of gas pipelines 6m Internal Diameter 35km Long 377,542bbtu of natural gas transported in FY13/14 26,458km of electricity cables 43,690GWh of electricity transmitted and distributed in FY13/14 60m Deep 18 Shafts 2 Tunnels 5,644bbtu of town gas transported in FY13/14 MINUTES PER CUSTOMER 200 150 100 50 0 0.7 2.3 5.0 7.0 7.9 12.2 SYSTEM AVERAGE INTERRUPTION DURATION INDEX (SAIDI) Average duration of unplanned interruptions a consumer experiences in a year (2013) 14.3 19.1 23.2 36.5 43.1 45.4 46.7 49.6 49.9 50.5 61.7 64.6 68.7 75.0 75.0 115.4 127.0 134.5 175.9 Singapore Hong Kong Tokyo Osaka Frankfurt Rotterdam New York City Taipei Amsterdam Milan Manchester Manila Bangkok London Rome Melbourne Toronto Kuala Lumpur Seattle Paris San Diego San Francisco Dublin East Victoria West Victoria Source: DNV GL, 2014 26 SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINING RELIABILITY AND EFFICIENCY Technical Officers Mohamed Musa bin Abdul Majeed (left) and Yakob Bin Mahdar carrying out inspection works at the Banyan gas offtake station. Our network performance tops global benchmarks, and this is only possible with rigorous operations and processes that are in line with established international best practices. We also invest in infrastructure and advanced technology to strengthen our electricity and gas networks. SP owns the electricity and gas transmission and distribution assets in Singapore. With the rising demand for power in Singapore, SP is committed to providing world-class energy utility services which remain reliable, efficient and sustainable. Our network performance tops global benchmarks, and this is only possible with rigorous operations and processes that are in line with established international best practices. We also invest in infrastructure and advanced technology to strengthen our electricity and gas networks. OPERATIONAL EXCELLENCE WORLD-CLASS NETWORK PERFORMANCE Singapore continues to experience the fewest and shortest electricity outages worldwide. The System Average Interruption Duration Index (SAIDI) was 0.74 minute per customer per year, while the System Average Interruption Frequency Index (SAIFI) was 0.02 interruptions per customer per year. This means the average electricity customer would only experience one interruption every 50 years. SINGAPORE POWER ANNUAL REPORT 2013/14 27 Gas network performance for the year was also within the set targets. The SAIDI and SAIFI score for the year was 0.59 minute and 0.003 interruptions per customer per year respectively. Singapore District Cooling (SDC) – which provides chilled water service to buildings for air-conditioning purposes – achieved 100 per cent performance in three areas: an accident-free record for workplace safety since it started operations in 2006; 100 per cent reliability in the supply of chilled water so its customers did not experience unplanned disruptions for yet another year and each of its customers experienced perfect quality of supply defined within stringent temperature ranges for the first time (no supply deviation). All this has translated to a high level of operational performance and strong customer satisfaction. INVESTMENT IN INFRASTRUCTURE Every successfully commissioned infrastructure adds to the reliability and resilience of Singapore’s power network and on this front, SP is constantly upgrading and expanding its operational infrastructure. The year saw good progress made on major 400kV and 230kV projects, while new projects and network planning initiatives were started. Several major 400kV, 230kV and 66kV Transmission Projects were commissioned. They include: • The Rangoon 400/230/66kV Substation will cater to a growing demand for power and strengthen the network in central Singapore. • The Tembusu 230/66kV Substation will serve as an additional primary source to meet increasing load demand in Jurong Island, which is home to leading petroleum and petrochemical industries, and improve the fault level margin for more generation connections. Staff at Singapore District Cooling work round the clock to deliver high levels of performance and reliability for customers. 28 SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINING RELIABILITY AND EFFICIENCY The Tembusu 230/66kV Substation is the first in Singapore to be installed with 500MVA 230kV series reactors, which will reduce the fault currents in the network and increase power resilience. Key Transmission Projects in progress include: • The Changi Expo 66kV Underground Substation is the first substation to be located underground in line with the government’s strategy to optimise use of land. Scheduled for completion in 2016, the substation will serve the upcoming Downtown MRT line. • A 230kV substation at Upper Jurong is scheduled for completion in 2015, to meet the area demand and facilitate customer connections. The natural gas network was extended by 34km to connect to more industrial customers, while that for town gas was extended by 90km for residential and commercial premises in Woodlands, Sengkang, Yishun, Punggol, Tampines and Sembawang. The Liquefied Natural Gas (LNG) Terminal, which commenced operations in May 2013, is a key government initiative to diversify the sources of gas supply to Singapore to strengthen energy resilience and security. SP is working closely with the Energy Market Authority and the Singapore Liquefied Natural Gas Corporation Pte Ltd to connect the LNG Terminal to its existing transmission networks. More industrial consumers and power stations now have access to gas supply from the LNG Terminal, following the completion and commissioning of 20km of gas transmission pipelines and the Bahar Offtake Station in January 2014. This followed the first phase – completed in March 2013 – which involved the laying of underground pipelines, construction of gas offtake stations in Jurong Island and Tuas South, and laying a submarine pipeline across the West Jurong Channel. SINGAPORE POWER ANNUAL REPORT 2013/14 29 SP operates the Gas Transportation IT System Solution (GTSS) which manages the transportation of natural gas in accordance with requirements under the Gas Network Code (GNC). In response to the expansion of the natural gas market as a result of LNG arrival, the GTSS has been upgraded to enhance system reliability and security. The Supervisory Control & Data Acquisition (SCADA) system upgrading was completed in June 2014 and certified to International Standard ISO 27001 to ensure both network and market operations meet the required performance standard. The North-South and East-West transmission cable tunnel project, comprising two cross-island cable tunnels constructed 60m underground, will provide a long-term solution to the ongoing upgrading and renewal of the power cable grid infrastructure in Singapore. It reached a milestone with the launch of the first Tunnel Boring Machine (TBM) in February this year, which signified the commencement of the tunnelling phase. Tunnel shaft construction is ongoing at the Shipyard, Benoi and West Jurong Island sites of the Jurong Island-Pioneer transmission cable tunnel project, and is expected to be completed by end of the year. Workers at the tunnel boring machine, May Road shaft. TAN KIM LENG Shift Leader Singapore District Cooling JIMMY KHOO Managing Director Singapore District Cooling ANG CHEE KEONG General Manager Singapore District Cooling SINGAPORE’S SUCCESS IN DISTRICT COOLING Located at basement five in downtown Marina Bay is Singapore District Cooling, the world’s largest underground district cooling network, where chilled water is produced and distributed to commercial buildings in the area for air-conditioning purposes. The intricate network includes 8km of pipelines that connect the different plants and customers in the vicinity, such as Marina Bay Sands Integrated Resort, Marina Bay Financial Centre and Gardens by the Bay. Singapore District Cooling recently achieved a milestone performance by scoring 100 per cent for an accident-free safety record, reliability, and quality of supply. In addition, a recent benchmarking study by DNV GL ranked Singapore District Cooling as having the world’s highest utilisation of its distribution network, in terms of air-conditioned area per kilometre of network. Singapore District Cooling’s efficient network frees up land in the commercial centre of Marina Bay and is especially valuable in land-scarce Singapore. It is also up to 30 per cent more efficient than conventional building cooling systems, helping customers achieve significant energy savings. The SDC team who celebrated the trio of “perfect” scores attributed their success to a strong operations philosophy, rigorously maintained processes geared toward keeping people and equipment safe, a customer-centric focus and good teamwork. 32 SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINING RELIABILITY AND EFFICIENCY Technical Officer Abbas Bin Mohd Supiah using the drawing versioning app. It was one of many apps developed to improve workplace productivity. PRODUCTIVITY IMPROVEMENTS SP is developing an Enterprise Asset Management (EAM) system for better productivity outcomes. The system optimises the use of SP assets such as equipment and facilities, by streamlining business processes and leveraging technology to align with best market practices. In addition, SP is developing a Health Index (HI) System for network assets to support asset management decisions. The system would provide a better indication of the overall health status of individual assets and its remaining useful life, so that SP can adopt a more objective and systematic approach in planning and prioritising ageing assets for replacement. A Supplier Relationship Management (SRM) system will also be introduced to enable the procurement team to better analyse the performance of suppliers and support management reporting requirements. SRM will also automate and improve processes by providing online workflows, electronic approvals of purchase requisitions, automated contract monitoring, and supplier collaboration functionalities. Several productivity apps have been developed to enable staff to perform intranet-based services while on the go, such as submission of claims and leave application. A drawing versioning app was also developed for distribution planners to vet substation drawings and send to external Licensed Electrical Workers (LEWs) electronically. This saves time and paper compared to using hardcopy plans. SINGAPORE POWER ANNUAL REPORT 2013/14 33 TECHNOLOGY FOR THE FUTURE To create sustainable solutions for the electricity and gas networks, we are constantly engaged in research and development on energy efficiency and grid modernisation. SMART GRID TECHNOLOGY In collaboration with research institutes and tertiary institutions, SP is undertaking five Smart Grid projects. The projects, with a total funding of $7m, focus on the reliability and resilience of the electricity grid and span areas such as energy analytics, storage, condition monitoring and control systems. One such project is a collaboration with Singapore Polytechnic to develop an intelligent and scalable DC micro-grid control system which allows for the transmission and usage of electricity from renewable generation sources without the need for any AC-DC conversion. IMPACT OF INTERMITTENT PV ON THE GRID In 2014, SP embarked on the study of photovoltaic (PV) impact on the distribution network, especially in areas with a high penetration of solar energy. SP will work with industry partners and research institutes to study the potential issues arising from the integration of PV systems with the network grid, and come up with mitigating solutions. GAS TRANSMISSION PIPELINE PROTECTION An intelligent Fiber Optic Sensing System is being developed to monitor, detect and pinpoint, in real-time, any unauthorised third-party construction activities in the vicinity of gas pipelines. This enables SP to intervene early in protecting the safety and integrity of the gas network. 34 SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINING RELIABILITY AND EFFICIENCY OUR SAFETY PLEDGE Safety is our highest priority Every life is precious Every accident is avoidable We uphold safe practices and strive for zero accident SAFETY – OUR HIGHEST PRIORITY The safety of our people, our contractors and our communities is of the highest priority. During the year, a Management Safety Committee chaired by the Group CEO, was instituted to set strategic directions and oversee safety improvement efforts. Further underscoring our commitment to safety, a new Group Safety and Health unit was established to spearhead safety initiatives across the Group, while a Safety Policy and Safety Pledge were implemented for staff and contractors. SP conducted safety workshops for contractors to raise awareness of safety issues and facilitate sharing of lessons learnt and best practices at worksites. Apart from preventing accidents, engaging the contractors on safety issues also allows them to take ownership, and partner SP to build a strong safety culture. A Personal Protective Equipment (PPE) campaign was also launched in April 2014 to encourage contractors to don PPE. As part of the campaign, training sessions were organised, while site safety inspections were conducted by SP PowerGrid management which were well-received by the contractors. A Safety Refresher Course involving interactive group activities, videos and case studies was also conducted for about 1,700 technical staff. During the annual Safety Roadshow conducted by the Health, Safety & Environment unit (HSE) under Operational Audit section in March 2014, HSE officers visited the various district offices to brief staff on safety matters and legislation concerning workplace safety and health. For the first time, office-based staff also benefited from these safety briefings. SINGAPORE POWER ANNUAL REPORT 2013/14 35 Senior Principal Engineer Yew Mun Cheong leading workers in reciting the safety pledge. SAFETY SCORECARD SP PowerGrid engaged DuPont to conduct a Safety Management Evaluation in 2013. The evaluation showed improvement over the previous one in 2007, in many areas including visible management commitment, line organisation responsibility, infrastructure of safety organisation, supportive safety personnel, awareness and communication. A DuPont Safety Perception Survey was also carried out to better understand staff perceptions on safety. Based on the findings of the evaluation and the survey, SP PowerGrid charted a Safety Roadmap to formulate and crystallise safety initiatives, to continue to drive improvement on safety performance. RAISING STANDARD OF OCCUPATIONAL HEALTH & SAFETY SYSTEM SP PowerGrid has embarked on a journey to improve its existing Occupational Health and Safety Management System (OHSMS), and gain accreditation under SS 506 Part 1 and the equivalent international OHSAS 18001 Standards. SP PowerGrid is reviewing its safety documentation and practices, ensuring that they meet the requirements stipulated under these standards. The accreditation process is due for completion in end 2014. SHAWN SEAH Principal Engineer Special Projects SP PowerGrid MICHAEL CHIN Managing Director Special Projects SP PowerGrid SAFETY IS OUR HIGHEST PRIORITY As Singapore Power embarks on infrastructure projects to enhance the reliability and efficiency of its network, safety remains its highest priority. SP spares no effort to ensure the safety of the community, its workers and contractors. SP invested $4 million in building two access roads allowing heavy vehicles to access its cable tunnel construction projects at May Road and Kallang directly from expressways. This ensures the heavy vehicles safely bypass schools and residential areas. The move has been well received by community stakeholders, whom SP consulted in the course of undertaking this initiative. The new access roads are the latest of safety measures implemented from the onset of the cable tunnel construction in 2012. Initial safety measures include deploying traffic marshals at schools, restricting heavy vehicle traffic during school peak hours, giving talks to students to raise road safety awareness and installing water barricades to prevent jaywalking around the construction sites. MICHAEL AARON YAP Assistant Director
 Special Projects SP PowerGrid DR LEE HEE SUK Construction Manager SK Engineering & Construction Co Ltd From Left: Customer Care Officers Hema Jayaseelan, Camelle Lim and Freddy Nyi SUSTAINING SERVICE EXCELLENCE 3.3 million electricity, water and gas meters are read every two months 1.4 million customers Best in Service SP Services is ranked among the best in service standards, according to an international benchmarking study conducted by established global consulting firm DNV KEMA 26,000 smart meters installed as at August 2014 31,300 utilities account opening and closing requests monthly 104,950 customer service transactions monthly 16 12 SERVICE COMMITMENT: ONE CALL, ONE CLICK, ONE STOP, ONE BUSINESS DAY Time taken to inspect and turn on pre-tested electrical installation 14 WORKING DAYS 8 4 0 1 2 2 3 3 5 6 7 8 9 Singapore Hong Kong Portugal USA USA Italy Spain Malaysia Hungary Slovenia Austria Source: DNV KEMA, 2013 40 SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINING SERVICE EXCELLENCE Customer Care Officer Siti Nurtifah Binte Omar always serves promptly and with a smile. SP Services provides customers with excellent service, according to an international benchmarking study by DNV GL. Our customers are at the heart of everything we do. We strive to uphold worldclass energy utility services and take every opportunity to ensure customers enjoy convenient, cost-efficient service at every touch point. SERVICE EXCELLENCE SP Services is ranked among the best in service standards, according to an international benchmarking study conducted by established global consulting firm DNV KEMA (now known as DNV GL) last year. The study affirmed the customer-centric culture of SP Services, which is the only utility company in the world that connects consumers to electricity, water and piped gas supply within one business day upon application. In the study, SP Services was also found to be the most cost-efficient among major electricity companies in Asia, Australia, Europe, Japan, the United Kingdom and the United States. At the 5 th Annual Asia Power & Electricity Awards 2014 in April, SP Services was awarded the Utility of the Year, beating major utility companies in the region. The award recognises SP Services’ outstanding performance in customer relationship management, and efforts in embracing technologies to improve operations. The judging criteria for this award is a combination of results from a judging panel as well as public voting. SINGAPORE POWER ANNUAL REPORT 2013/14 41 performance and development projects, emergency preparedness and response, and the industry’s business resilience and risk landscape. The first edition of The Electricity Times was published in all the major daily newspapers on 1 April 2014. This quarterly public education bulletin aims to enhance public understanding of power matters, and raise awareness of SP’s services and operations. Jeanne Cheng, Managing Director of SP Services, receiving the Utility of the Year award from Bryan Spear, Managing Director, Asia Pacific of Trilliant. REGULAR CUSTOMER ENGAGEMENT As part of efforts to engage industry partners, 15 representatives from Singapore’s banking industry were invited to SP PowerGrid’s Power Quality Interest Group meeting in November 2013 where they gained insights into SP’s power quality management, network GREATER CONSUMER CONVENIENCE SP has rolled out several initiatives to enhance its customer touchpoints and provide greater convenience. From September 2013, consumers could pay their bills via two additional channels, the AXS e-station (Internet) and AXS m-station (mobile phone). SP also developed a smart phone app that allows the public to give feedback or report on electricity and gas supply matters. It also enables the public to attach pictures and tag location-specific information to the feedback. This builds on an earlier smart phone app, which allowed customers to submit their own meter readings for greater billing accuracy and convenience. To better serve the growing number of contestable consumers, SP launched the MyPower portal (www.mypower.com.sg), which enables consumers to check their contestability eligibility status and apply for contestability. Contestable consumers can obtain their detailed consumption charts through the portal. To encourage greater energy efficiency, SP partnered the Energy Market Authority and PUB to launch an initiative allowing consumers to compare their electricity, water and gas consumption in the last six months against the national average consumption and the average consumption of their neighbours living in similar housing types. In the coming months, SP Services will be expanding the project with additional features and make this service available through other channels such as mobile applications. The Electricity Times advertorial aims to enhance public understanding of power matters. SINGAPORE POWER ANNUAL REPORT 2013/14 43 SUSTAINING SERVICE EXCELLENCE SP’s new app enables the public to conveniently provide feedback on electricity and gas matters. FACILITATING COMPETITION AND CONSUMER CHOICE SP plays an instrumental role in the implementation of retail contestability for the electricity market. This will eventually empower the 1.2 million residential consumers to purchase electricity from retailers of their choice. In the past year, Singapore has taken major steps towards full liberalisation of the electricity retail market. The contestability threshold was lowered from 10,000kWh to 8,000kWh on 1 April 2014, and subsequently to 4,000kWh on 1 October 2014. As a result, more consumers have the choice of buying electricity from any of the licensed electricity retailers, or from the wholesale electricity market. SP has implemented the use of Advanced Metering Infrastructure (AMI) meters which measure contestable consumers’ usage at half-hour intervals, so that they can enjoy competitive pricing and better manage their electricity consumption to enjoy savings on their bills. It has also improved its IT systems to provide reliable back-end support. LAWRENCE LEE Head, Operations & Projects SP Services RAZALI BIN MOHD Deputy Director, Properties & Infrastructure SP PowerGrid JEANNE CHENG Managing Director SP Services PROVIDING CONSUMERS GREATER CHOICE As the nation moves towards liberalising the electricity market, Singapore Power has been working steadfastly behind the scenes to swiftly deploy technology and refine processes in order to support a growing number of contestable consumers. By August 2014, SP had installed 26,000 smart meters, a feat which was achieved in less than two years instead of the usual three-year timeframe. The smart meters allow contestable consumers to better monitor and manage their usage, and help them to achieve savings. SP has also enhanced its IT systems to provide reliable back-end support. Throughout the process, the combined expertise of a core team from SP PowerGrid, SP Services and Information Technology worked closely with the Energy Market Authority, retailers, consultants and other stakeholders. WONG CHIT SIENG Chief Information Officer Singapore Power LIM AH KUAN Director SP PowerGrid From left: Leong Wai Yee, Executive Engineer, Electricity Operations; Yong Haur Ming, Engineer, Electricity Operations; Lee Say Teck, Cedric, Deputy Director, Electricity Operations; Nur Hafiza Binte Mohd Zulkifli, Engineer, Gas Operations and Woon Thian Han, Henrick, Engineer, Special Projects SUSTAINING OUR TALENT 3,500 local employees 103 scholarships awarded 75 TRAINING HOURS PER EMPLOYEE (in FY13/14) 381 higher education sponsorships invested 360 º Leadership Feedback SP Training Institute conducted 246 training sessions through 75 courses (FY13/14) 13 Polytechnic and 9ITE graduands 22 recipients awarded the Nithiah Nandan Scholarships 60% of engineering workforce are Professional Engineers or pursuing certification through SP sponsorship 48 SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINING OUR TALENT Recipients of the Singapore Power Nithiah Nandan ITE and Polytechnic scholarships with NTUC Secretary-General Lim Swee Say, Mrs Nithiah Nandan, SP Group CEO Wong Kim Yin and UPAGE leaders. SP launched the Singapore Power Nithiah Nandan ITE and Polytechnic Scholarships for students from the Institute of Technical Education (ITE) and the polytechnics. As SP powers the nation, it is the ideas, energy and passion of our workforce that upholds our world-class performance. Over the year, SP has implemented numerous initiatives to attract talent, develop core competencies and reward performance. ATTRACTING BRIGHT SPARKS SP has launched its Singapore Power Nithiah Nandan ITE and Polytechnic Scholarships for students from the Institute of Technical Education (ITE) and the polytechnics. The new scholarships will build on existing efforts to nurture talent for the power sector, and also provide students from diverse backgrounds with more pathways into the sector. Named after the late unionist Mr Nithiah Nandan, the scholarships were awarded to the inaugural batch of 22 recipients (13 Polytechnic and 9 ITE graduands) in March 2014. Scholarship recipients are assured of a job at SP after graduation, where they will develop the knowledge and technical skill sets relevant to the power sector, and possibly obtain sponsorship for further studies. NURTURING TALENT SP invests in a wide range of learning and development programmes to cater to staff with different needs and aspirations. This includes higher education sponsorships to enable staff to upgrade their knowledge and skills through further studies. As of March 2014, 381 higher education sponsorships have been awarded. In July 2013, SP started the EDGE (Engineering Development for Graduates) Programme to prepare new graduate engineers for technical excellence and leadership by exposing them to the diverse facets of the organisation. SINGAPORE POWER ANNUAL REPORT 2013/14 49 Following a year of structured training which comprises theory-based lessons, short attachments and on-the-job training, they will undergo two job rotations to SP’s business and operation units in the next four years. One of the key milestones of this programme will be to attain Professional Engineer accreditation with SP’s sponsorship. EDGE welcomed its second cohort of fresh engineers this year, bringing the total number of engineers under the Programme to 58. STRENGTHENING LEADERSHIP & PERFORMANCE MANAGEMENT SP progressively rolled out a “360 o Leadership Feedback” survey for management staff during the year in review, to better identify the strengths and development needs of our leaders. Serving as a development mirror, the 360 o Leadership Feedback gathers comprehensive feedback from superiors, peers, subordinates and other stakeholders who have worked with the person being rated. It will also provide valuable input for coaching sessions to help leaders develop their strengths and management skills. The Powering Leaders Programme was also launched this year, to hone leadership capabilities of management staff. The programme comprised panel discussions with leaders from other industries, management case studies and group activities to reinforce learning and experience sharing. COMPETITIVE PAY AND BENEFITS The salary ranges of the seven non-executive job classes were enhanced, following Collective Agreements which were made between the Union of Power and Gas Employees (UPAGE) and SP, on 3 October 2013. The new salary ranges arose from a rigorous benchmarking exercise, to reflect job market value. EDGE engineers at a team-building programme by Outward Bound Singapore. 50 SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINING OUR TALENT Andrew Tan, Senior Principal Trainer from SP Training Institute, conducting a course on Electrical Safety for Distribution Works. To emphasise SP’s pay-for-performance philosophy, the Variable Bonus framework was enhanced to incorporate a Corporate Bonus – which recognises team efforts in the accomplishment of group safety and financial goals – and a Merit Bonus for strong performers. We also enhanced general benefits including medical benefits, insurance benefits relating to accidents and life coverage, and allowances for shift and vocational work. MANAGING KNOWLEDGE Set up in April 2013, the SP Engineering Board has moved towards boosting engineering standards within SP, and putting in place an internal knowledge management system for effective sharing of information. To raise engineering standards, the Board developed a Technical Competency Framework which clearly identifies the core competencies that technical staff must possess. This framework will shape how these staff will be trained, deepen their technical competencies and arm them with relevant skills and knowledge. SINGAPORE POWER ANNUAL REPORT 2013/14 51 A knowledge management framework to capture, codify and utilise knowledge within SP has also been developed. This will encourage knowledge sharing and reduce employees’ search time for relevant knowledge, to enhance safety and improve workforce efficiency. The Board is also reviewing electricity and gas transmission and distribution practices to align these with current international best practices, looking at how to boost grid performance and efficiency by studying the latest technology, and driving business performance by using data analytics. BOOSTING INDUSTRY COMPETENCIES The Singapore Power Training Institute (SPTI) runs all internal training courses for SP’s employees. Conducted by a team of experienced engineers with specialised skills and knowledge of best practices, the courses are structured to enhance core competencies in operations and safety. SPTI ran 246 training sessions conducted through 75 courses during the year in review. In FY 14/15, 22 new courses will be introduced to better meet the needs of the power sector. Training facilities at Woodleigh Park have also been upgraded, so participants can utilise better training equipment in a more comfortable environment. In line with the Singapore Government’s plan to build a strong talent core in the power industry, SPTI, together with industry partners and the Energy Market Authority, will develop a comprehensive end-to-end training programme covering power generation and transmission to end-services, to meet the nation’s power needs. MOHAMED FARHAN BIN MOHD RAFI Technician Network Management, Electricity SP PowerGrid LIM CHOR HOON Head Human Resource Singapore Power STRENGTHENING OUR TALENT POOL Singapore Power’s people are its strongest resource. From diversifying its search for talent to strengthening its existing expertise, SP places emphasis on developing a well-skilled and dedicated workforce to manage the complexity of the nation’s power needs. Lim Chor Hoon, Head of Human Resource, oversees SP’s strategies on attracting and retaining talent. Her team ensures all employees have clear pathways and the resources to acquire the right skills at every stage of their career. Mohamed Farhan bin Mohd Rafi, a recipient of the Singapore Power Nithiah Nandan ITE and Polytechnic Scholarship, has started his career in Network Management, Electricity Operations. The scholarship was introduced in 2014 to draw top talent from the polytechnics and ITEs into the power industry. Regina Tan, an engineer with Network Development, Gas Operations, was amongst the pioneer batch of SP’s Engineering Development for Graduates (EDGE) Programme last year, which provides graduate engineers with a structured learning programme and postings to critical operational areas. Lim Howe Run, who has served in SP for 26 years, has benefited from numerous professional and personal growth opportunities throughout his career, including a management stint in Australia. Beginning as an engineer, Howe Run has ventured into a wide range of business areas, such as financial analysis, business development, asset management and risk management. He is currently a member of SP’s senior management, heading Regulatory Management and Strategic Investments. LIM HOWE RUN
 Head Regulatory Management and Strategic Investments Singapore Power REGINA TAN Engineer Gas Operations SP PowerGrid From Left: Soon Yi Bin, Principal Engineer (Electricity Operations), with Mdm Cheong Kim Chwee, resident of AWWA Community Home for Senior Citizens in 2014. From this year, SP has broadened its support of elderly services to all 26 elderly programmes managed by Community Chest, including this AWWA Home. SUSTAINING OUR COMMUNITY In 2013, SP Heartware Fund supported the delivery of 673,000 warm meals to the doorsteps of needy seniors and made sure seniors were accompanied on TEMASEK CARES STAY PREPARED INITIATIVE Partnering SingPost to deliver starter kits to 1.2 million households 13,000 trips for medical and rehabilitation care SP supports 31,000 beneficiaries from 26 elderly programmes run by Community Chest SP volunteers delivered over 400,000 starter kits to 144 charity homes, 86 constituencies and 37 foreign worker dormitories More than $8 million raised for the SP Heartware Fund $388,000 raised from the SP Charity Golf 2013 $1.05 million raised for the SP Heartware Fund in FY13/14 56 SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINING OUR COMMUNITY Muhammad Juraimi bin Mohamed Ali, Technician (Electricity Operations), helping an elderly resident at AWWA community home wear an N95 mask. In 2013, the widespread effects of the regional haze left some Singaporeans caught without protective N95 face masks. This was the impetus for the nation-wide Stay Prepared initiative to encourage people to be prepared for emergencies. SP is committed to contributing to our community, reflecting SP’s larger commitment to nation-building. During the year, we continued to raise funds and volunteer our time for worthy causes. HELPING SINGAPORE STAY PREPARED In 2013, the widespread effects of the regional haze left some Singaporeans caught without protective N95 face masks. This was the impetus for the nation-wide Stay Prepared initiative to encourage people to be prepared for emergencies. In this Temasek Cares initiative, SP was a lead partner in the starter kit programme. Our work in providing households with world-class reliability around the clock represents emergency preparedness, and it is a value which SP hopes to seed in the community. SP volunteers along with Singapore Post distributed emergency starter kits to 1.2 million households in May 2014. Our staff also delivered over 400,000 starter kits to 144 charity homes, 86 constituencies and 37 foreign worker dormitories. Each kit consisted of three N95 masks, emergency contact numbers and instructions on how to wear the mask in four languages. In addition, SP was also involved in conceptualising and designing the overall starter kit, and setting up a call centre so members of the public could get answers to questions about the initiative. SINGAPORE POWER ANNUAL REPORT 2013/14 57 Meter reader Yoganathan s/o Tharmalingam was part of the team that delivered emergency starter kits to 1.2 million households in Singapore. KEEPING OUR COMMUNITY SAFE Sparing no effort to uphold safety standards, SP built two roads for heavy construction vehicles to access the May Road and Kallang construction sites directly from expressways, in order to bypass nearby residential areas and schools. Initiated in consultation with community stakeholders, this move was well received. This initiative builds on safety measures which the cable tunnel team had implemented from the onset of the project in end 2012, including deploying traffic marshals at schools, restricting heavy vehicle traffic during school peak hours, giving talks to students to raise road safety awareness and installing water barricades to prevent jaywalking around the construction sites. RAISING FUNDS FOR THE ELDERLY The SP Heartware Fund, which benefits the needy elderly, is a core community programme for SP. It has been growing from strength to strength over the years. Last year, we raised over $1 million for the Fund, totalling to $8 million which has been raised since 2005. The money goes to seven Home Help Service programmes run by the Community Chest, benefiting needy elderly people who live alone or have little family support. Essential services are provided to the needy elderly in their homes such as meal delivery, personal hygiene, housekeeping, laundry and medical escort services for medical consultations. A key fund-raising event was the SP Charity Golf 2013 held on 30 August 2013, which brought in over $388,000. All proceeds went to the beneficiaries as fund-raising activities were underwritten by SP. Staff also contributed over $30,000 to the Fund, and SP matched every dollar donated. Since 2014, SP has broadened its support to all 26 elderly programmes managed by Community Chest, reaching out to 31,000 beneficiaries. Services include dementia day care, hospice care, community homes and caregiver support. In addition, SP staff donated over $34,000 under the Community Chest SHARE programme and SP again matched every dollar donated. In recognition of our support of the Community Chest, we received the SHARE Corporate Silver award for staff participation in the SHARE programme and the Special Events Platinum award for fund-raising through events. SP also contributed close to $300,000 to various charity organisations and community causes during the year in review. SP Group CEO Wong Kim Yin (left) presenting a cheque for funds raised in 2013 to Sim Gim Guan, CEO of NCSS and Ng Ling Ling, Managing Director of Community Chest. MOHAMED AMIN B MOHAMED Meter Reader SP Services TONY YEO Deputy Director Network Development, Electricity SP PowerGrid REACHING OUT TO THE COMMUNITY Powering the nation goes beyond providing reliable and efficient utility services. Singapore Power also reaches out to the community, making a positive difference to the needy and underprivileged. SP was a lead partner in Temasek Cares’ Stay Prepared Starter Kit programme. Together with Singapore Post, Singapore Power delivered emergency starter kits to all 1.2 million households in Singapore in May 2014. Each kit comprised N95 masks, wearing instructions in four languages and emergency contact numbers. SP was actively involved in the concept development, design, planning and delivery of the starter kits. SP staff volunteers also delivered 17,000 starter kits to 144 charity homes. In addition, staff delivered starter kits to constituencies for low-income families and foreign worker dormitories. The effort was an extension of the nation-wide Stay Prepared initiative to encourage households in Singapore to be better prepared for emergencies. LYNETTE TAN Director, Customer Relationship Management SP Services MDM P. SEENIVASAGAM Resident AWWA Community Home for Senior Citizens 60 SINGAPORE POWER ANNUAL REPORT 2013/14 SUSTAINING OUR COMMUNITY SP volunteers hosted elderly beneficiaries of Lions Befrienders to a Chinese New Year lunch. NURTURING VOLUNTEERISM SP staff continued to spend time and effort on various outreach initiatives. During the Chinese New Year, volunteers packed and delivered auspicious goody bags or fu dai containing essential items sponsored by SP for about 100 elderly beneficiaries at a festive lunch gathering at Mei Ling Street. On 22 April 2014, they hosted elderly beneficiaries of the Lions Befrienders, Thye Hua Kwan Moral Charities and TOUCH Community Services to tea and participated in a green activity to commemorate Earth Day. The beneficiaries tried their hands at potting air-purifying plants using recycled pots donated and decorated by our volunteers. SP volunteers also visited the Bright Hill Evergreen Home and Pertapis Senior Citizens Fellowship Home in 2014 to bring cheer to the elderly residents. Our volunteer efforts were featured on the ComChest Care & Share Charity Show on 27 July 2014. During the show, Chief Information Officer Wong Chit Sieng presented a cheque to ComChest Chairman Philip Tan for our contributions. To build ties in the communities we work in, the SP Cable Tunnel Team participated in various outreach activities involving stakeholder groups near the shaft locations. These include Peirce and Admiralty secondary schools, Tanglin Trust School, Franciscan Missionaries of Mary and grassroot leaders. Their involvement also helped to raise awareness of the ongoing North-South and East-West transmission cable tunnel project. FINANCIAL SUMMARY CONTENTS Summary Directors’ Report 62 / Independent Auditors’ Report 64 / Balance Sheets 65 Income Statements 66 / Statements of Comprehensive Income 67 / Statements of Changes in Equity 68 Selected Notes to the Summary Financial Statements 70 62 SINGAPORE POWER ANNUAL REPORT 2013/14 SUMMARY DIRECTORS’ REPORT YEAR ENDED 31 MARCH 2014 IMPORTANT NOTE The summary financial statements as set out on pages 65 to 76 contains only a summary of the information in the directors’ report and financial statements of Singapore Power Limited’s (the “Company”) annual report. It does not contain sufficient information to allow for a full understanding of the results and the state of affairs of the Company or of the Company and its subsidiaries (collectively the “Group”). The full annual report, including the independent auditors’ report on those financial statements and the directors’ report, can be found on the Group’s website www.singaporepower.com.sg. SUMMARY DIRECTORS’ REPORT 1 DIRECTORS The directors in office at the date of this report are as follows: Tan Sri Mohd Hassan Marican Mr Alan Chan Heng Loon Mr Ho Tian Yee Mr Tan Chee Meng Mr Bobby Chin Yoke Choong Prof Jeremy Guy Ashcroft Davis Mr Choi Shing Kwok Mrs Oon Kum Loon Mr Tan Puay Chiang Mr Ong Yew Huat Mr Wong Kim Yin 2 PRINCIPAL ACTIVITIES The principal activities of the Company are that of investment holding and provision of management support services. Its subsidiaries are engaged principally in the transmission and distribution of electricity and gas, provision of related consultancy services and investment in related projects. SINGAPORE POWER ANNUAL REPORT 2013/14 63 SUMMARY DIRECTORS’ REPORT YEAR ENDED 31 MARCH 2014 3 UNUSUAL ITEMS DURING AND AFTER THE FINANCIAL YEAR In the opinion of the directors, no item, transaction or event of a material and unusual nature has arisen during the financial year or in the interval between the end of the financial year and the date of this report which would substantially affect the results of the operations of the Group and the Company for the financial year in which this report is made, or render any item in the financial statements of the Group and the Company for the current financial year misleading, and/or affect the ability of the Group and the Company in meeting the obligations as and when they fall due, except as disclosed in the notes to the full financial statements. The summary financial statements set out on pages 65 to 76 was approved by the Board of Directors on 30 May 2014 and was signed on its behalf by: TAN SRI MOHD HASSAN MARICAN Chairman MR WONG KIM YIN Group Chief Executive Officer/Director 30 May 2014 64 SINGAPORE POWER ANNUAL REPORT 2013/14 INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 MARCH 2014 INDEPENDENT AUDITORS’ REPORT ON THE SUMMARY FINANCIAL STATEMENTS Member of the Company Singapore Power Limited The accompanying summary financial statements of Singapore Power Limited (the Company) and its subsidiaries (the Group), which comprise the balance sheets of the Group and the Company as at 31 March 2014, the income statements and statements of comprehensive income of the Group and of the Company and the statement of changes in equity of the Group for the year then ended, and related notes as set out on pages 65 to 76, are derived from the audited financial statements of the Group for the year ended 31 March 2014. We expressed an unmodified audit opinion on those audited financial statements in our report dated 30 May 2014. The summary financial statements do not contain all the disclosures required by the Singapore Financial Reporting Standards. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of the Group. Management’s responsibility for the summary financial statements Management is responsible for the preparation of a summary of the audited financial statements on the basis described in note 1. Auditors’ responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Singapore Standard on Auditing 810 Engagements to Report on Summary Financial Statements. Opinion In our opinion, the accompanying summary financial statements derived from the audited financial statements of the Group for the year ended 31 March 2014 are consistent, in all material respects, with those audited financial statements, on the basis described in note 1. KPMG LLP Public Accountants and Chartered Accountants Singapore 30 May 2014 SINGAPORE POWER ANNUAL REPORT 2013/14 65 BALANCE SHEETS AS AT 31 MARCH 2014 Group Company 2014 2013 2014 2013 $ million $ million $ million $ million Non-current assets Property, plant and equipment 9,436.1 25,363.0 24.0 25.7 Intangible assets 107.3 3,293.1 7.6 6.7 Subsidiaries – – 6,780.8 6,780.8 Associates and joint venture 3,345.3 1,376.1 – – Other investments – 14.9 – – Other non-current assets 170.5 695.9 1.1 1.8 Deferred tax assets 12.6 15.7 – – 13,071.8 30,758.7 6,813.5 6,815.0 Current assets Inventories 48.3 170.8 – – Trade and other receivables 737.6 1,651.0 2,689.1 6,502.6 Cash and cash equivalents 3,133.6 1,875.2 2,872.4 224.3 3,919.5 3,697.0 5,561.5 6,726.9 Total assets 16,991.3 34,455.7 12,375.0 13,541.9 Equity Share capital 3,911.9 3,911.9 3,911.9 3,911.9 Reserves 39.7 (201.7) – – Accumulated profits 5,267.3 4,753.5 4,886.5 5,087.8 Equity attributable to owner of the Company 9,218.9 8,463.7 8,798.4 8,999.7 Non-controlling interests 55.6 1,917.5 – – Total equity 9,274.5 10,381.2 8,798.4 8,999.7 Non-current liabilities Bank loans 100.0 2,580.9 – – Debt obligations 3,715.3 11,979.1 – – Other financial liabilities 111.6 1,475.1 – – Other non-current liabilities 470.7 980.9 3.6 4.0 Deferred tax liabilities 1,099.8 1,338.0 1.4 1.5 5,497.4 18,354.0 5.0 5.5 Current liabilities Trade and other payables 1,890.2 2,435.0 3,567.1 4,139.7 Bank loans – 630.0 – – Debt obligations 162.1 2,221.4 – 352.9 Other financial liabilities 34.0 300.4 – 32.5 Current tax payable 133.1 133.7 4.5 11.6 2,219.4 5,720.5 3,571.6 4,536.7 Total liabilities 7,716.8 24,074.5 3,576.6 4,542.2 Total equity and liabilities 16,991.3 34,455.7 12,375.0 13,541.9 66 SINGAPORE POWER ANNUAL REPORT 2013/14 INCOME STATEMENTS YEAR ENDED 31 MARCH 2014 Group Company Note 2014 2013 2014 2013 $ million $ million $ million $ million (Restated*) Continuing operations Revenue 4,793.1 4,941.9 198.3 404.4 Other income 261.0 194.1 10.3 – Expenses – Purchased power (3,202.7) (3,384.0) – – – Depreciation of property, plant and equipment (456.5) (445.5) (5.8) (5.1) – Amortisation of intangible assets (21.9) (26.8) (2.6) (1.6) – Maintenance (97.5) (114.4) (4.6) (4.5) – Staff costs (392.6) (311.3) (57.7) (43.0) – Property taxes (56.3) (50.7) (0.3) (0.3) – Other operating expenses (97.0) (81.4) (13.8) (14.4) Operating profit 729.6 721.9 123.8 335.5 Finance income 13.5 14.0 21.9 24.5 Finance costs (82.5) (266.1) (6.9) (20.7) Share of profit of associates, net of tax 33.3 – – – Profit before taxation 693.9 469.8 138.8 339.3 Tax (expense)/credit (153.1) (120.0) 4.9 3.6 Profit from continuing operations 540.8 349.8 143.7 342.9 Discontinued operations Profit from discontinued operations, net of tax 4 344.6 721.9 – – Exceptional items – Impairment loss on intangible assets 4 – (426.4) – – – Impairment loss on investment in associates and joint venture 4 – (94.7) – – – Gain on derivatives used for economic hedge 4 129.0 – – – Profit for the year 1,014.4 550.6 143.7 342.9 Profit attributable to: Owner of the Company 919.7 357.3 143.7 342.9 Non-controlling interests 94.7 193.3 – – Profit for the year 1,014.4 550.6 143.7 342.9 * See note 4. SINGAPORE POWER ANNUAL REPORT 2013/14 67 STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED 31 MARCH 2014 Group Company 2014 2013 2014 2013 $ million $ million $ million $ million Profit for the year 1,014.4 550.6 143.7 342.9 Other comprehensive income Items that will not be reclassified to profit or loss: Defined benefit plan remeasurements, net of tax 58.5 (7.8) – – Share of defined benefit plan remeasurements of associates 5.9 – – – 64.4 (7.8) – – Items that are or may be reclassified subsequently to profit or loss: Translation differences relating to financial statements of foreign operations (950.9) (100.5) – – Effective portion of changes in fair value of cash flow hedges, net of tax 107.3 (203.9) – – Net change in fair value of cash flow hedges reclassified to profit or loss, net of tax 7.7 221.9 – – Net change in fair value of cash flow hedges on recognition of the hedged items on balance sheet, net of tax 49.5 3.1 – – Disposal of subsidiaries (note 4) 741.1 – – – Share of hedging reserve of associates (9.2) – – – (54.5) (79.4) – – Other comprehensive income for the year, net of tax 9.9 (87.2) – – Total comprehensive income for the year 1,024.3 463.4 143.7 342.9 Attributable to: Owner of the Company 1,100.2 277.4 143.7 342.9 Non-controlling interests (75.9) 186.0 – – Total comprehensive income for the year 1,024.3 463.4 143.7 342.9 68 SINGAPORE POWER ANNUAL REPORT 2013/14 STATEMENTS OF CHANGES IN EQUITY YEAR ENDED 31 MARCH 2014 Total equity Currency attributable to Non- Share translation Hedging Other Accumulated owner of controlling Total capital reserve reserve reserve profits Company interests equity Group $ million $ million $ million $ million $ million $ million $ million $ million At 1 April 2012 3,911.9 157.8 (170.6) (109.0) 4,546.2 8,336.3 1,600.3 9,936.6 Total comprehensive income for the year Profit for the year – – – – 357.3 357.3 193.3 550.6 Other comprehensive income Translation differences relating to financial statements of foreign operations – (84.1) – – – (84.1) (16.4) (100.5) Effective portion of changes in fair value of cash flow hedges, net of tax – – (148.8) – – (148.8) (55.1) (203.9) Net change in fair value of cash flow hedges reclassified to profit or loss, net of tax – – 157.0 – – 157.0 64.9 221.9 Net change in fair value of cash flow hedges on recognition of the hedged items on balance sheet, net of tax – – 2.7 – – 2.7 0.4 3.1 Defined benefit plan remeasurements, net of tax – – – (6.7) – (6.7) (1.1) (7.8) Total other comprehensive income – (84.1) 10.9 (6.7) – (79.9) (7.3) (87.2) Total comprehensive income for the year – (84.1) 10.9 (6.7) 357.3 277.4 186.0 463.4 Transactions with owner, recognised directly in equity Contributions by and distribution to owner Dividends declared – – – – (150.0) (150.0) – (150.0) Equity contribution by non-controlling interests – – – – – – 291.4 291.4 Dividends paid to non-controlling interests – – – – – – (160.2) (160.2) Total transactions with owner – – – – (150.0) (150.0) 131.2 (18.8) At 31 March 2013 3,911.9 73.7 (159.7) (115.7) 4,753.5 8,463.7 1,917.5 10,381.2 SINGAPORE POWER ANNUAL REPORT 2013/14 69 STATEMENTS OF CHANGES IN EQUITY YEAR ENDED 31 MARCH 2014 Total equity Currency attributable to Non- Share translation Hedging Other Accumulated owner of the controlling Total capital reserve reserve reserve profits Company interests equity Group $ million $ million $ million $ million $ million $ million $ million $ million At 1 April 2013 3,911.9 73.7 (159.7) (115.7) 4,753.5 8,463.7 1,917.5 10,381.2 Total comprehensive income for the year Profit for the year – – – – 919.7 919.7 94.7 1,014.4 Other comprehensive income Translation differences relating to financial statements of foreign operations – (731.4) – – – (731.4) (219.5) (950.9) Effective portion of changes in fair value of cash flow hedges, net of tax – – 76.0 – – 76.0 31.3 107.3 Net change in fair value of cash flow hedges reclassified to profit or loss, net of tax – – 6.9 – – 6.9 0.8 7.7 Net change in fair value of cash flow hedges on recognition of the hedged items on balance sheet, net of tax – – 44.9 – – 44.9 4.6 49.5 Defined benefit plan remeasurements, net of tax – – – 46.3 – 46.3 12.2 58.5 Disposal of subsidiaries (note 4) – 700.4 40.7 – – 741.1 – 741.1 Share of other comprehensive income of associates – – (9.2) 5.9 – (3.3) – (3.3) Total other comprehensive income – (31.0) 159.3 52.2 – 180.5 (170.6) 9.9 Total comprehensive income for the year – (31.0) 159.3 52.2 919.7 1,100.2 (75.9) 1,024.3 Transactions with owner, recognised directly in equity Contributions by and distribution to owner Dividends declared – – – – (345.0) (345.0) – (345.0) Equity contribution by non-controlling interests – – – – – – 12.8 12.8 Dividends paid to non-controlling interests – – – – – – (168.3) (168.3) Total transactions with owner – – – – (345.0) (345.0) (155.5) (500.5) Changes in ownership interests in subsidiaries Disposal of subsidiaries (note 4) – – – – – – (1,630.5) (1,630.5) Other Transfer from other reserve to accumulated profits – – – 60.9 (60.9) – – – At 31 March 2014 3,911.9 42.7 (0.4) (2.6) 5,267.3 9,218.9 55.6 9,274.5 70 SINGAPORE POWER ANNUAL REPORT 2013/14 SELECTED NOTES TO THE SUMMARY FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2014 1 BASIS OF PREPARATION The summary financial statements are derived from the audited financial statements of the Group for the year ended 31 March 2014. 2 CHANGES IN ACCOUNTING POLICIES Adoption of new and revised Financial Reporting Standards (FRS) and Interpretations to FRS (INT FRS) The Group has adopted all the new and revised FRS and INT FRS that became mandatory for the financial year beginning on 1 April 2013. Other than those discussed below, the adoption of these new FRS and INT FRS has no significant impact to the Group. Fair value measurement FRS 113 establishes a single framework for measuring fair value and making disclosures about fair value measurements, when such measurements are required or permitted by other FRS. In particular, it unifies the definition of fair value as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date. It also replaces and expands the disclosure requirements about fair value measurements in other FRS, including FRS 107 Financial Instruments: Disclosures. From 1 April 2013, in accordance with the transitional provisions of FRS 113, the Group has applied the new fair value measurement guidance prospectively, and has not provided any comparative information for new disclosures. Notwithstanding the above, the change had no significant impact on the measurements of the Group’s assets and liabilities. The additional disclosures necessary as a result of the adoption have been included in the audited financial statements of the Group. Presentation of items of other comprehensive income From 1 April 2013, as a result of the amendments to FRS 1, the Group has modified the presentation of items of other comprehensive income in its consolidated statement of comprehensive income, to present separately items that would be reclassified to profit or loss in the future from those that would never be. Comparative information has also been re-presented accordingly. The adoption of the amendment to FRS 1 has no impact on the recognised assets, liabilities and comprehensive income of the Group. SINGAPORE POWER ANNUAL REPORT 2013/14 71 SELECTED NOTES TO THE SUMMARY FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2014 3 CONTINGENT LIABILITIES AND CONTINGENT ASSETS (a) Australian Taxation Office (ATO) disputes (i) Section 163AA impost During August 2011, the ATO issued amended assessments to SP AusNet in respect of the 2001 to 2006 income years, disallowing deductions claimed in respect of fees imposed under Section 163AA of the Electricity Industry Act 1993 in the 1999 to 2001 tax years. Under the amended assessments, the amount of primary tax payable is A$54.0 million. In October 2011, the ATO agreed to a part payment arrangement, on the basis that the amount due is a disputed tax amount. Under the arrangement, SP AusNet paid A$30.6 million. Up to 31 March 2013, this amount has been recorded as a non-current receivable. A general interest charge continues to accrue in respect of unpaid tax under the payment arrangement, in addition to the total amount disclosed on the amended assessments. On 10 October 2012, SP AusNet lodged a notice of appeal and other documents in the Federal Court, appealing the ATO’s amended assessments. On 12 September 2013, the Federal Court delivered judgement against SP AusNet’s appeal. On the basis of this ruling, for the year ended 31 March 2014 SP AusNet has derecognised the A$30.6 million non-current receivable and recognised a A$70.2 million provision for tax, representing the unpaid portion of primary tax and the unpaid general interest charge up to 31 March 2014. This provision represents the amount that is potentially payable under the amended assessments and, along with the write-off of the non-current receivable and the deductibility of the general interest charge, has reduced net profit after tax for the year ended 31 March 2014 by A$86.7 million. On 7 October 2013, SP AusNet lodged a notice of appeal in the Federal Court. On 7 April 2014, the Full Court of the Federal Court of Australia delivered judgement against SP AusNet. SP AusNet has subsequently sought special leave to appeal to the High Court of Australia. The application hearing is expected to be heard in the second half of calendar year 2014. SP AusNet continues to believe that the fees imposed under Section 163AA are deductible. If SP AusNet is ultimately successful in these proceedings, then the A$86.7 million reduction in net profit after tax that has been recognised at 31 March 2014 would be reversed (contingent assets) and the A$30.6 million part-payment would be refunded, with interest. The Group’s share of the contingent assets will be A$27.0M. 72 SINGAPORE POWER ANNUAL REPORT 2013/14 SELECTED NOTES TO THE SUMMARY FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2014 3 CONTINGENT LIABILITIES AND CONTINGENT ASSETS (continued) (a) Australian Taxation Office (ATO) disputes (continued) (ii) Intellectual Property During September 2011 and October 2011, the ATO issued amended assessments to SP AusNet in respect of the 2001 to 2010 income years, disallowing deductions claimed in respect of intellectual property in each of those income years. Under the amended assessments, the amount payable is A$44.0 million (representing A$27.4 million of primary tax, plus an interest and administrative penalty component of A$16.6 million). In November 2011, SP AusNet lodged notices of objection in relation to the amended assessments issued. The ATO agreed to a part-payment arrangement, with SP AusNet making a payment of A$17.1 million to the ATO in October 2011. This amount has been recorded as a non-current receivable a

Contents Taking The Heat Off Cooling: A Greener Way to Cool This white paper was published by SP Group and Temasek. A version of the report can be found at www.ecosperity.sg. © August 2021, SP Group and Temasek. All Rights Reserved. 4 7 8 10 14 16 17 22 23 24 25 26 27 34 Forewords Executive Summary The Hot Issue of Keeping Cool District Cooling 101 Tampines Eco Town: A Distributed District Cooling Network Methodology Key Findings Key Insights The Way Forward Acknowledgements Useful Units of Measurements Conversion Factors Annex – Detailed Methodology References Forewords 04 Forewords Mr Masagos Zulkifli Adviser to Tampines GROs, Minister for Social and Family Development, Second Minister for Health and Minister-in-charge of Muslim Affairs Tampines aspires to transform into an Eco Town by 2025, in support of the Singapore Green Plan 2030. In recent years, our estate has been undergoing a green facelift to create a more sustainable living environment for residents. For example, we have piloted Eco Boards at lift lobbies to help residents track how much electricity and water they use as a block. We also contributed to the national renewable energy drive through the installation of solar panels on our blocks and implemented programmes to recycle food waste. These were very well received by Tampines residents and encouraged a sustainability culture at the neighbourhood level. Encouraged by these successes, we are now looking at how we can enable commercial buildings to adopt sustainable practices. Apart from being a residential estate, Tampines is also an active and mature business hub, home to an industrial park, several office complexes, and a cluster of shopping malls. There are many opportunities to do more in this area. Hence, we have offered Tampines Central as a testbed for an innovative cooling concept, known as the Distributed District Cooling (DDC) network. Conceived by SP Group, the network is a novel approach to district cooling in a brownfield development, allowing the building owners to use less energy for their cooling needs as a whole. The results of the feasibility study look promising. There is a potential of 18 per cent fall in carbon emissions – equivalent to removing 2,250 cars from the roads annually – when the DDC network takes off. This is the first time in Singapore where existing buildings in a brownfield site pool together their resources to achieve substantial carbon footprint savings. Another first for Tampines! I hope that the study will pave the way for such solutions to be explored in other townships and brownfield sites, contributing to our national sustainability efforts. One challenge that we have observed confronting building owners is energy consumption. A large part of the energy consumed in commercial buildings goes to cooling. Taking The Heat Off Cooling: A Greener Way to Cool Forewords 05 Ms Amy Hing 1 Deputy Secretary, Ministry of Sustainability and the Environment Climate change poses an existential challenge for Singapore. Sea level rise threatens our island nation, while changes in the climate jeopardise our access to essential resources such as water and food, and have consequences for public health and diseases. The Centre for Climate Research Singapore projected that by 2100, daily mean temperatures in Singapore could rise by up to 4.6 degrees Celsius. Days with peak temperatures hitting 40 degrees Celsius may appear as early as 2045. We are already experiencing such effects; four out of the last six years are amongst the top 10 warmest years recorded in Singapore. We need a whole-of-nation effort to address climate change. The Singapore Green Plan 2030 is our roadmap towards sustainable development and to achieve our long-term net-zero emissions target as soon as viable. It involves everyone – from individuals and communities to businesses and the public sector. A key pillar of the Green Plan is Energy Reset, which looks at how we can use cleaner energy and increase our energy efficiency. This is particularly relevant for our towns, which require energy for cooling needs. This study by Temasek and SP Group explores an innovative district cooling solution in a brownfield site that can potentially lower the carbon footprint while addressing the needs of residents and businesses in our tropical climate. I hope that the data and insights gained from the feasibility study will encourage more ideas and collaboration on innovative district-level solutions, bringing us closer to our goals under the Green Plan. Image: Artist’s impression of Tampines Eco Town Studying the Impact of a Source: Brownfield Tampines Distributed Town Council District Cooling Network in Singapore Forewords 06 Dr Steve Howard Chief Sustainability Officer Temasek International Mr Stanley Huang Group Chief Executive Officer SP Group The global community has moved from concern over climate change to recognising it as a climate emergency. As we see the consequences of climate change all around us, we know our window to act has been reduced. We must move with renewed urgency and greater ambition to decarbonise across sectors. One key sector is the built environment, which contributes close to 40 per cent of global energyrelated carbon emissions. A significant portion of this comes from the energy consumed by buildings, predominantly for heating or cooling. In tropical regions like Singapore where the weather is hot all year round, the demand for cooling will only increase and a more efficient way to cool buildings could significantly reduce their energy consumption and carbon emissions and reduce the burden on household budgets. We need a tripartite effort from businesses, governments, and investors to rethink the way buildings and districts are designed, built, and operated. This has the potential to generate significant economic benefits, such as reduced lifecycle costs for buildings. Temasek’s wide network of partners makes it possible to help bring together the different stakeholders necessary to address this challenge. Temasek is delighted to partner with SP Group to study the feasibility of a novel distributed district cooling concept for brownfield developments, which could provide a proof-of-concept for developed cities worldwide. Sustainable development underpins Singapore’s long-term goal to build a resilient future. Enabling urban decarbonisation is pivotal to this vision. In land-scarce Singapore, we must constantly innovate our built environment to optimise land and building resources as well as minimise our carbon footprint. In Singapore, with air-conditioning accounting for up to 50 per cent of the total energy consumed in a building, we need to redesign how interiors can be cooled in a sustainable and costeffective manner. Therein lies the solution of a district cooling network. Its benefits are fourfold: enhances energy savings, lowers cost of cooling, improves land use, and reduces carbon emissions. These are validated through SP Group’s proven track record of 100 per cent reliability and up to 40 per cent improvement in energy efficiency in building and operating Singapore’s first district cooling project at Marina Bay since 2006. We are also developing Singapore’s first residential centralised cooling system for the Tengah precinct. We are optimistic this feasibility study on a distributed district cooling network in Tampines will yield business and environmental benefits. This will pave the way for existing buildings and districts to go green and lay the cornerstone for future eco-districts. Sustainability is central to our long-term strategy, and it requires the collective effort and collaborative partnership of building owners, government agencies, the community and solution providers such as SP Group. Together we can harness our combined strengths to enable widespread adoption of sustainable energy solutions in Singapore and build green energy ecosystems for commercial districts, residential towns, and campuses for a greener and better future. Taking The Heat Off Cooling: A Greener Way to Cool Executive Summary 07 Executive Summary 2011 to 2020 was the warmest decade on record. Earth’s six warmest years have all occurred since 2015 – yet another sign of global warming’s grip on the planet. Researchers around the globe have cautioned that this trend will not only continue, but also increase in extremity. As temperatures climb, cities are desperate to stay cool. Unfortunately, the current simplest and most mainstream solution worsens the problem – air-conditioning. They are energy guzzlers, generate more waste heat than cooling, and contribute to climate change by emitting hydrofluorocarbons, chemicals that trap heat in the atmosphere at alarming rates. There is a critical need to find a better way to cool down our living environment. One solution that has gained traction across the globe is district cooling – central cooling plants that supply chilled water to various buildings through an underground network of insulated pipes. These plants consume less energy for the same amount of cooling, free up space, and reduce lifecycle costs as buildings do not need to invest in their own chillers. Such systems are already being used in Singapore, such as the Marina Bay district – cooling more than a dozen buildings in the area, including Marina Bay Sands, the Marina Bay Financial Centre, and One Raffles Quay. There is, however, a limitation to the way district cooling systems are currently built. They are typically incorporated into the design of a new development, and hence are more suitable for greenfield sites. For built-up or brownfield sites with buildings that already have their own chiller plant systems, it becomes much harder to introduce district cooling. Hence, a novel approach – a distributed district cooling (DDC) network – is being explored in Tampines Central, under the Tampines Eco Town initiative. It was conceptualised by SP Group, a leading energy utilities company. In the DDC network, existing cooling systems of selected buildings will produce chilled water for their own cooling needs and that of other buildings within the district. A preliminary feasibility study was conducted on this DDC network concept in Tampines Central, and the results were promising. In one year, the DDC network could potentially achieve: A 17% reduction in energy consumption - enough to power 1,665 three-room HDB households for a year A 18% fall in carbon emissions from both energy savings and refrigerant reduction – equivalent to removing 2,250 cars from roads per year S$4.3 million in annual economic value from energy, equipment replacement and maintenance cost savings, as well as potential earnings from leasing out freed-up chiller plant space The findings show that the DDC network would be able to lower energy consumption and carbon footprint. It is a possible game changer that could green entire developments at one go – an attractive solution for brownfield sites such as industrial estates and existing townships. With Singapore announcing the Singapore Green Plan 2030 to address climate change and promote sustainable living, district cooling networks could open the door to a cooler and cleaner future. Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore The Hot Issue of Keeping Cool 08 The Hot Issue of Keeping Cool • As temperatures rise, so does the use of air-conditioners. There are over one billion air-conditioning units in the world right now – a number that is expected to increase to 4.5 billion units by 2050. • These electrical appliances consume large amounts of energy to bring temperatures down. Cooling systems typically make up about 40 to 50 per cent of a building’s total energy consumption. • But beyond cooling you down, air-conditioners can also leak potent greenhouse gases that exacerbate climate change – leading to even higher temperatures. Air-conditioners commonly use hydrofluorocarbons (HFCs) as refrigerants, which are 116 to 12,400 times more efficient at trapping heat than carbon dioxide. • The heat is on to find a more efficient way to cool. The air-conditioner is hailed as one of the most important inventions in modern history, allowing people to control and cool the weather inside. But after removing the heat and humidity indoors, airconditioners in fact lead to warmer temperatures outside, contributing to the Urban Heat Island (UHI) 1 effect. Singapore has the highest per capita installed rate of air-conditioning among the Association of Southeast Asian Nations (ASEAN) countries, with about 80 per cent of households owning air-conditioners. While air-conditioners can provide thermal comfort, they consume a lot of energy to do so. Air-conditioning currently accounts for up to 24 per cent of the average household electricity bill in Singapore. For an entire commercial building, cooling systems typically make up 40 to 50 per cent of its total energy consumption. Air-conditioners also often use hydrofluorocarbons (HFCs) that trap heat – making them potent greenhouse gases that contribute to climate change should they leak into the atmosphere. In fact, the concentration of HFCs in the atmosphere is growing at a faster rate than that of all other greenhouses gases, and studies have shown that their growth could cancel out the entire benefit of controlling carbon dioxide (CO 2 ) emissions. On the whole, this means an enormous drain on power and a comparable jump in carbon emissions should electricity generation in Singapore continue to be dominated by fossil fuels – a future that Singapore is determined to avoid. The city-state aims to halve the amount of emissions it produces from its 2030 peak by 2050, eventually achieving net-zero emissions as soon as possible in the second half of the century. 1 The Urban Heat Island (UHI) effect refers to a phenomenon where urban areas face higher temperatures than its surrounding rural areas. It is caused by the heat generated from human activities and trapped by urban surfaces such as buildings and roads. Taking The Heat Off Cooling: A Greener Way to Cool The Hot Issue of Keeping Cool 09 DID YOU KNOW? In Singapore, urban built-up areas can be up to 7°C warmer than areas that are more rural. Recognising the need for more sustainable living, the Ministry of Sustainability and the Environment (MSE) set up a SG Eco Office in March 2020 to spearhead and coordinate sustainability projects across Singapore. Cooling is an important part of this work. Building owners, developers, and regulators need to rethink their cooling systems. One town that is doing so is Tampines, which is transforming into an Eco Town where the spirit of sustainability is built into its infrastructure and instilled in its community. It has piloted dashboards at the lift lobbies of several residential blocks to help residents track electricity and water usage as a block, introduced programmes to recycle food waste, and potentially having the greatest impact – it is studying the possibility of implementing a novel distributed district cooling network. This report takes a closer look at a preliminary feasibility study on a proposed cooling network that involved 14 commercial buildings in Tampines Central. The following sections will include details of the study’s methodology, and the resulting energy savings and reduction in carbon emissions among the buildings. Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore District Cooling 101 10 District Cooling 101 • District cooling is a modern and efficient way to provide air-conditioning for a network of buildings, where chilled water is supplied from centralised cooling plants. • The benefits of district cooling include enhanced energy savings, lowered lifecycle costs, and reduced carbon emissions. A District Cooling System Imagine a giant air-conditioner that can cool an entire district of buildings, rather than just individual buildings – but greener and more energy efficient. How does it work? 1 Chilled water is generated in a central cooling plant. 2 A closed loop network of underground insulated pipes distributes the chilled water to each customer’s building. OFFICE BUILDINGS RETAIL BUILDINGS COMMUNITY CENTRES 3 When the chilled water reaches the customer’s building, energy transfer stations within each building circulate the cold energy from the network into the building’s airconditioning system, which dehumidifies and cools the air. COOLING TOWERS 3 4 4 The warmer water is then circulated to the cooling plant, via the return pipes, to be chilled again. The whole process repeats itself. 5 2 Chilled water (4 to 7°C) Warmer water (12 to 14°C) 5 Thermal storage tanks (if used*), are designed to store cold energy, in the form of ice or chilled water. Thermal storage tanks help to regulate cooling demand and provide resilience. 1 Energy transfer station CENTRAL COOLING PLANT Thermal storage tank *Not all district cooling system plants deploy thermal storage tanks. Taking The Heat Off Cooling: A Greener Way to Cool District Cooling 101 11 Benefits of district cooling systems Improves efficiency A chiller plant system in one building is unlikely to be operating at its optimal efficiency at all times due to partial loading conditions. This is typical during actual operations, where the cooling demand of a building fluctuates. However, a district cooling system is expected to operate closer to its optimal efficiency level most of the time as it will accurately select the most suitable mix of chillers to meet the aggregated cooling demand. Saves energy Larger systems typically consume less electricity for the same amount of cooling due to economies of scale, which improves the energy efficiency of the system. When combined with thermal storage capabilities, the system can further reduce peak electricity demand for cooling by shifting chilled water production to periods where there is less demand on the electricity grid. Frees up space Each building no longer needs to house its own cooling equipment, which means that building owners are able to use the freed-up space for other purposes, or even lease them out. Cuts costs Building owners no longer need to buy their own chillers or incur operating and maintenance costs. The need to invest in additional chillers to buffer for potential increases in cooling needs and provide redundancy is also eliminated. Reduces carbon footprint With an overall reduction in refrigerants used, the amount of harmful HFCs emitted into the environment will be reduced as well. In addition, a reduction in overall energy consumption will in turn lower carbon emissions. Provides the network effect The initial cost of building the district cooling infrastructure may be high. However, once the infrastructure is laid, the cost of connecting an additional building will be significantly lower. Over time, the benefits that the system brings to customers would significantly outweigh the costs of connecting them to the network. Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore District Cooling 101 12 CASE STUDY A cool secret beneath Marina Bay Lying 25 metres beneath the ground in Singapore’s Marina Bay district is the world’s largest underground district cooling system. Designed, built, and operated by SP Group, the system produces up to 35,000 refrigeration tons (RT) of chilled water each hour, and serves 16 developments in the area, including Marina Bay Sands, the Marina Bay Financial Centre, and One Raffles Quay. Water is chilled to 4.5 degrees Celsius at two cooling plants before being transported to the buildings through five kilometres of insulated underground network pipes. The chilled water is used to provide air-conditioning for the buildings by cooling the air circulating in the occupied spaces in each building before being pumped back to the plants to be chilled again. This cycle is then repeated. The heat extracted from the buildings is carried by the water back to the plants and released into the surrounding environment through large cooling towers above ground. Building owners using the district cooling system have enjoyed significant energy savings and carbon emissions reduction. By centralising the production of chilled water and removing the need for buildings to have their own chiller plant, the district cooling system has also freed up some 25,000 square metres of prime land space for other uses, such as the Marina Bay Sands infinity pool, which is also the world’s largest rooftop infinity pool. Building owners using the system have enjoyed significant energy savings and carbon emissions reduction. The system has also freed up some 25,000 m 2 of prime land space for other uses. Taking The Heat Off Cooling: A Greener Way to Cool 13 Can district cooling be applied to existing developments? Given the engineering complexity and the significant upfront infrastructure costs involved, a district cooling system is typically introduced in greenfield developments, where it is integrated into the design of the development – like the Marina Bay case study. But in a highly developed city like Singapore, where majority of land has been built up and individual building owners already equipped with their own chiller plants, how can the concept of district cooling still be applied? Tampines Eco Town: A Distributed District Cooling Network 14 Tampines Eco Town: A Distributed District Cooling Network The proposed Distributed District Cooling (DDC) network comprises 14 buildings interconnected via insulated network pipes. Instead of constructing a new centralised cooling plant, buildings in the DDC network with existing excess chiller capacity act as injection nodes, supplying chilled water to cool the rest of the buildings in the network. To find out if district cooling could be applied to existing developments or brownfield sites, a study was conducted at Tampines Central. It involved 14 buildings – a mix of retail and commercial premises, and data centres – each with its own chiller plant system. An initial assessment made on the 14 buildings’ existing cooling capacity yielded the following results: A total annual cooling load of 42,897,215 RTh/year, of which 88% belonged to chiller plant loads and 12% belonged to unitary systems A current total installed cooling capacity of 25,836 RT, which exceeds the hourly peak operating cooling load of 8,395 RT by three times 88% Chiller plant loads Peak cooling load 12% Unitary systems Installed cooling capacity A unitary system refers to self-contained airconditioning that provides cooling to a localised zone. The common examples are Multi-room split units, Variable Refrigerant Volume units, and Packaged units. Unitary systems are popular among users who require cooling for a specific area that the building might not have previously catered for (e.g. tenanted space and server rooms). Unitary systems are typically less efficient than chiller-based systems. x 3x The results indicate that there were chillers operating at partial capacity and redundant chillers that were not in operation at all. This presented an opportunity to optimise the usage of the existing chiller plant systems to reduce the overall energy consumption and, ultimately, the greenhouse gas emissions of the buildings. Applying the principles of district cooling, SP Group conceptualised a Distributed District Cooling (DDC) network, where 14 buildings would be interconnected via insulated pipes that distribute and circulate chilled water in a closed loop. The key to the energy savings for the DDC network, compared to buildings operating their own chiller plants individually, lies in the concept of an integrated operation. Through the consolidation of individual buildings, the DDC network is able to choose the best combination of chillers amongst the different chiller plants to most efficiently meet the fluctuating cooling demands throughout day and night. A few existing chiller plants are chosen to serve as “injection nodes” 2 , producing and supplying chilled water to meet the cooling demands of all buildings within the network. This would allow the required installed cooling capacity to be streamlined to meet actual cooling demands, allowing the chiller systems to operate at optimum efficiency. The remaining excess capacities would subsequently be trimmed once these redundant chillers reach their end-of-life. 2 The chiller plants that were selected to serve as injection nodes typically had excess capacities (≥1000 RT) and very good energy efficiencies (≤0.68 kW/RT). Taking The Heat Off Cooling: A Greener Way to Cool Tampines Eco Town: A Distributed District Cooling Network 15 The 14 Buildings Involved in the Feasibility Study of the DDC Network in Tampines Central 1 6 10 13 8 12 3 4 5 11 2 9 7 14 1 7 & 9 Tampines Grande 6 OCBC Tampines Centre One 11 Tampines Plaza 1 DDC network pipes 2 Century Square 7 OCBC Tampines Centre Two 12 Tampines Plaza 2 3 CPF Tampines Building 8 Our Tampines Hub 13 Telepark 4 Income At Tampines Junction 9 Tampines Mall 14 UOB Tampines Centre 5 Income At Tampines Point 10 Tampines One Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore Methodology 16 Methodology The energy savings and reduction in refrigerant that the DDC network could offer over the Business-as-Usual (BAU) scenario, over 30 years, were first calculated. 30 years is the typical tenure of a district cooling project. Thereafter, the total carbon emission reduction and long-term economic value were determined. More detailed information on the study’s methodology can be found in the Annex. STEP 1 What are the energy savings? Calculate the difference in the amount of energy consumed to cool the 14 buildings between the DDC network and the BAU scenario over 30 years. Calculate the resulting carbon emissions reduction from the energy savings (A), using the EMA Grid Emissions Factor. 3 STEP 2 What is the reduction in refrigerant used? Calculate the difference in the type and amount of refrigerant used to cool the 14 buildings between the DDC network and the BAU scenario over 30 years. Calculate the resulting carbon emissions reduction from the reduction in refrigerant used (B). STEP 3 What is the total reduction in carbon emissions? Total carbon emissions reduction from using the DDC system over 30 years = A + B. STEP 4 What is the long-term economic value? Calculate the economic value of the DDC network over 30 years from: • Electricity bill savings • Capacity charge savings • Carbon tax savings • Potential rental earnings if the freed-up • Equipment replacement cost savings chiller plant space were to be leased out • Operation and maintenance cost savings 3 The Grid Emission Factor (GEF) measures the average CO 2 emissions emitted per MWh of electricity generated. For the study, the EMA GEF (2019) of 0.4085 kgCO 2 /kWh was used. Taking The Heat Off Cooling: A Greener Way to Cool Key Findings Tampines Eco Town Distributed District Cooling Network Feasibility Study ENERGY CONSUMPTION CARBON EMISSIONS 17% reduction An annual savings of 5,321,432 kWh Enough to power 1,665 3-room HDB households in a year 18% reduction An annual decrease of 2,475 tonnes of CO 2 e Equivalent to taking 2,250 cars off the road per year ECONOMIC VALUE $130 million over 30 years Or $4.3 million a year, mainly from: Energy, maintenance, and equipment replacement cost savings Potential earnings from leasing out freed-up chiller plant space Key Findings 18 Key Findings Energy Savings of 17% In the BAU scenario, the efficiencies of the chiller plants ranged from 0.57 to 0.83 kW/RT, and the efficiency of the unitary systems was 1.57 kW/RT. This results in a weighted average system efficiency of 0.765 kW/RT from all the cooling systems across the 14 buildings. In comparison, the DDC network’s efficiency is targeted to be maintained at 0.620 kW/RT or better across 30 years. In addition, the DDC network would be operated by a third-party professional service operator and comply with the National Environment Agency’s (NEA) Minimum Energy Efficiency Standards (MEES) requirements by 2025/2029, which would help to ensure more consistent and efficient system performance over long periods. Therefore, moving to the DDC network would save the 14 buildings approximately 5,321,432 kWh of energy a year, or 17 per cent of the BAU energy consumption – enough to power 1,665 three-room HDB households. With less energy expended, carbon emissions would also be reduced. The annual average carbon emissions reduction would be 2,174 tonnes of carbon dioxide equivalent (tCO 2 e) – equivalent to taking 1,976 cars off the roads per year. Potential energy savings from moving to the DDC network Carbon emissions reduction from the potential energy savings from moving to the DDC network 17% 17% 31,917,705 26,596,273 13,038 10,865 BAU scenario DDC network Annualised average energy consumption (kWH) BAU scenario DDC network Annualised average carbon emissions (tonne-CO 2 e) Moving to the DDC network would save enough energy to power 1,665 3-room HDB households in a year. The annual average carbon emissions reduction is equivalent to taking 1,976 cars off the roads per year. Taking The Heat Off Cooling: A Greener Way to Cool Key Findings 19 Refrigerant Reduction of 76% Hydrofluorocarbons (HFCs) are commonly used as refrigerants 4 in cooling systems and contribute more to global warming than CO 2 . They are released into the environment mainly through cooling equipment leakages. A HFC leakage rate of two per cent a year was assumed for this study. The combined hourly cooling load demand from both chiller plant and unitary systems of the 14 buildings peaks at around 8,395 RT. However, the current total installed capacity is about three times more at 25,836 RT (24,446 RT from chiller systems and 1,390 RT from unitary systems). In comparison, the DDC network is designed to have a total chiller capacity of 10,280 RT. As the DDC network has a much smaller installed chiller capacity compared to the BAU scenario, significantly less amount of refrigerant will be used. In addition, the BAU unitary systems use the R-32 refrigerant, which has a higher global warming potential 5 compared to the refrigerant used by the chillers. Once the buildings are interconnected in the DDC network, unitary systems will no longer be required as buildings would be able to enjoy the chilled water services at all times, removing the need for unitary systems to provide ad-hoc cooling. This would also lead to lower carbon emission numbers. The annual average carbon emissions reduction would be 301 tCO 2 e – equivalent to taking 273 cars off the road per year. Carbon emissions reduction from the potential reduction in refrigerant used in the DDC network 395 94 76% As the DDC network has a much smaller installed chiller capacity compared to the BAU scenario, significantly less amount of refrigerant will be used. BAU scenario DDC network Annualised average carbon emissions from refrigerant use (tonne-CO 2 e) The annual average carbon emissions reduction is equivalent to taking 273 cars off the roads per year. 4 Refrigerant is a compound typically found in either a fluid or gaseous state. It readily absorbs heat from the environment and can provide refrigeration or air-conditioning when combined with other components such as compressors and evaporators. 5 The Global Warming Potential (GWP) was developed to allow comparisons of the global warming impacts of different gases. Specifically, it is a measure of how much energy the emissions of 1 ton of a gas will absorb over a given period of time, relative to the emissions of 1 ton of CO 2 . The larger the GWP, the more a given gas warms the Earth compared to CO 2 over that time period. Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore Key Findings 20 Carbon Emission Reduction of 18% The total carbon emissions reduction is calculated by adding the carbon emissions reduction from the energy savings and reduction in refrigerant used. The annual average carbon emissions reduction would be 2,475 tCO 2 e, or an 18 per cent reduction from the BAU scenario – equivalent to taking 2,250 cars off the roads per year. Total carbon emission reduction from moving to the DDC network 18% 13,433 10,958 BAU scenario DDC network Total carbon emissions from energy and refrigerant use (tonne-CO 2 e) Carbon emissions (tonne-CO 2 e) from BAU energy consumption: 13,038 from BAU refrigerant use: 395 from DDC network energy consumption: 10,865 from DDC network refrigerant use: 94 Carbon emissions reduction (tonne-CO 2 e) from energy savings: 2,174 from reduction in refrigerant use: 324 Taking The Heat Off Cooling: A Greener Way to Cool The annual average carbon emissions reduction is equivalent to taking 2,250 cars off the roads per year. Key Findings 21 Long Term Economic Value of $130M Besides clear environmental gains from the reduction in carbon emissions, building owners in the DDC network also stand to gain tangible monetary benefits. These include: • Electricity bill savings: With less energy consumed, electricity bills will be reduced. • Carbon tax savings: Singapore had implemented a carbon tax scheme on 1 January 2019 at a rate of S$5/tCO 2 e, from 2019 to 2023. 6 With carbon emissions reduced through the DDC network, building owners will pay less carbon tax. • Equipment replacement cost savings: In the BAU scenario, unitary systems have to be replaced every 10 years, while chiller plants have to be replaced every 15 years – capital costs that building owners will incur. With the DDC network, unitary systems are no longer required, and the installed capacity of the chiller plants will be significantly reduced from 25,836 RT to 10,280 RT to match the cooling needs of the district. As such, less capital expenditure will be incurred during a replacement cycle for the DDC network. • Maintenance cost savings: With the installed chiller plant capacity significantly decreased, maintenance costs will be lower. • Capacity charge savings: Connection to the DDC network will result in a diversified load with lower peak demand compared to the BAU scenario. This will translate to lower capacity charges (associated with peak demand) for the DDC network. • Potential rental earnings: For buildings that are not injection nodes, their existing chiller plant room space could potentially be freed up and converted to a retail or office space. This could serve as an additional revenue stream in the form of rental income for building owners. Using a DDC network over 30 years, approximately S$70,646,644 in lifecycle costs can be saved, and up to an additional S$58,985,393 in commercial value can be unlocked through the leasing of freed-up chiller plant space. The potential economic value of the DDC network (S$) 7 58,985,393 129,632,037 Sources of cost savings & their value over 30 yrs (S$) Equipment replacement: 23,055,913 70,646,644 Maintenance: 22,948,920 Electricity bill: 19,380,654 Capacity charge: 3,700,051 Carbon tax: 1,561,106 Total cost savings Potential rental earnings Total economic value 6 Please refer to the Annex – Detailed Methodology for the full carbon tax scheme in Singapore. 7 Please refer to the Annex – Detailed Methodology for the assumptions used in the calculation of each source of economic value. Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore Key Insights 22 Key Insights • Planning for optionality is important when embarking on greenfield projects. It helps to accommodate future works, thereby becoming more cost-effective in the long run as there is less disruption to the surrounding infrastructure. • Making the DDC network attractive to building owners is important as it encourages greater participation that contributes to the best district-level outcome. 1 2 In any brownfield development, a retrofit project can be complicated as there is often the need to navigate the existing built environment while ensuring minimal disruption to existing operations. This could also affect the economic viability of the project. Therefore, as today’s greenfield development becomes tomorrow’s brownfield development, it is important for developers and city planners to consider and build in optionality from the start when embarking on greenfield developments. This would help in accommodating future works while avoiding the complex challenges of retrofitting projects. A case in point would be the Marina Bay district, which was planned with optionality in mind. It has a common services tunnel that alleviates the need to dig up pavements or roads when additional underground pipes have to be installed to meet the needs of future developments. While the short-term costs of building a common services tunnel are high, it becomes more costeffective in the long run. This would allow district-level solutions such as a DDC network to be implemented in a brownfield site without incurring exorbitant costs and adversely affecting the current surroundings. In a district-level system, greater participation paves the way for better outcomes due to economies of scale, and because certain critical roles may need to be fulfilled by specific stakeholders. It is then useful to consider how incentives may be designed to ensure not only maximum participation, but also the participation of those critical to the success of the system. For instance, the proposed DDC network in Tampines Central comprises injection nodes and off-takers. Off-taker buildings will no longer have to house a chiller plant system, which frees up space for leasing to earn additional rental income. This makes it attractive for buildings to come on board as off-takers. On the other hand, while injection-node buildings will be compensated through lease and rental payments by the DDC network operator for housing chiller plants, the earnings may not compare to the more sizeable rental income that off-taker buildings could potentially enjoy. As injection nodes play a critical role in the viability of the overall DDC network, it is important to consider how the role could be made more attractive to building owners. Some possibilities could include providing Gross Floor Area (GFA) 8 credits to injection node buildings or providing additional recognition through awards or certification programmes. 8 All covered floor areas of a building, except otherwise exempted, and uncovered areas for commercial uses, are deemed the gross floor area of the building. Taking The Heat Off Cooling: A Greener Way to Cool The Way Forward 23 The Way Forward Based on the key findings from the feasibility study, if a DDC network were to be implemented in Tampines Central, it would have the potential to reduce energy consumption and carbon emissions by 17 per cent and 18 per cent respectively, and provide economic value of some S$130 million over 30 years. Electricity consumption in buildings and households contribute to approximately 20 per cent of Singapore’s overall annual carbon emissions. A large portion of this is due to cooling, which consumes about 40 per cent of electricity in buildings and households. This means that cooling alone contributes roughly 8 per cent of our nation’s annual carbon emissions. Should district cooling be scaled nationwide, Singapore is likely to see significant carbon emissions reduction and economic benefits. With the announcement of the Singapore Green Plan 2030 to address climate change and promote sustainable living, there is a strong impetus to explore the implementation of more district-level solutions, like the DDC network, to achieve a cleaner and greener future for all. To scale such solutions in Singapore, it will be vital for all relevant stakeholders to come together to remove any regulatory impediments, build with the future in mind, and design incentives to encourage maximum participation of all. If a DDC network were to be implemented in Tampines Central, it could provide economic value of some S$130 million over 30 years. Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore Acknowledgements 24 Acknowledgements Temasek and SP Group would like to thank all the organisations and individuals that have contributed to this study. Special thanks to the Ministry of Sustainability and the Environment, particularly its SG Eco Office, for the support in facilitating discussions with relevant government agencies throughout the study. Core Study Team Temasek Frederick Teo, Managing Director, Sustainable Solutions Soh Hui Qing, Vice President, Sustainable Solutions Ong Shu Fen, Senior Associate, Sustainable Solutions SP Group S. Harsha, Managing Director, Sustainable Energy Solutions Foo Yang Kwang, Chief Engineer, Singapore District Cooling Richard Chin, Deputy Director, Partnerships, Sustainable Energy Solutions Melvin Fong, Principal Engineer, Sustainable Energy Solutions Technical Advisor Building System & Diagnostics Pte Ltd (BSD) Yong Ping Quen, Technical Director Lim Xing Hao, Senior Engineer Rachel Lam Xin Yi, Executive Engineer Tan Shi Hao, Executive Engineer Participating Buildings and their Owners CapitaLand Tampines Mall Telepark Central Provident Fund Board CPF Tampines Building Frasers Property Century Square Tampines One EVIA Real Estate and Metro Holdings 7 & 9 Tampines Grande NTUC Income Income At Tampines Point Income At Tampines Junction OCBC Bank OCBC Tampines Centre One OCBC Tampines Center Two People’s Association Our Tampines Hub UIC Tampines Plaza 1 Tampines Plaza 2 UOB UOB Tampines Centre Taking The Heat Off Cooling: A Greener Way to Cool Useful Units of Measurements 25 Useful Units of Measurements Refrigerant Ton (RT) A refrigerant ton refers to the rate of heat removal required to freeze a metric ton (1000kg) of water at 0 degree Celsius in 24 hours. It is a widely adopted unit of measurement for the cooling capacity of a refrigeration machine. System Efficiency (kW/RT) The system efficiency is computed based on the annual energy consumption (kWh) of the system over the annual cooling consumption in RTh. Therefore, the unit is in kW/RT. Tonne of Carbon Dioxide Equivalent (Tonne-CO 2 e or tCO 2 e) This is a standard measurement used to express the warming impact of other greenhouse gases in terms of the amount of CO 2 emissions that would create the same amount of warming. Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore Conversion Factors 26 Conversion Factors As used in “Key Findings” Item Conversion References EMA grid emission factor (GEF) in 2019 1 kWh = 0.4085 kg-CO 2 e Information adapted from EMA Singapore Energy Statistics (SES) 2020 - T2.4 www.ema.gov.sg/singapore-energy-statistics/Ch08/index9 Annual energy consumption of a 3-room HDB flat 1 flat = 266.3 kWh/month x12 = 3,195.6kWh/year 2019 EMA Singapore Energy Statistics: www.ema.gov.sg/singapore-energy-statistics/Ch03/index3 Annual carbon emissions from 1 internal combustion engine (ICE) car 1 car = 1.1 tCO 2 e/year Information adapted from the LTA’s Fuel Economy Calculator: vrl.lta.gov.sg/lta/vrl/action/pubfunc?ID=FuelCostCalculator Assumptions: • Average daily traveling distance: 9.5 km per trip reported by LTA • Assumed 750 trips per year (2 times per day) As used in “Annex - Detailed Methodology” Item Conversion References Carbon emissions from R-134a refrigerant for a centrifugal chiller Carbon emissions from R-134a refrigerant for a screw chiller Carbon emissions from R-1233zd(E) refrigerant for a centrifugal chiller Carbon emissions from R-410A refrigerant Carbon emissions from R-32 refrigerant 1 RT = 1.8875 tCO 2 e Information adapted from the Leadership in Energy and Environmental Design (LEED) 9 guidelines and chiller specifications 1 RT = 1.8616 tCO 2 e 1 RT = 0.0045 tCO 2 e 1 RT = 1.6982 tCO 2 e 1 RT = 0.5511 tCO 2 e Global warming potential (GWP): • R-134a = 1300 • R-123 = 79 • R-1233zd(E) = 1 • R-410A = 1924 • R-32 = 677 Maximum refrigerant charge: • R-134a Centrifugal Chiller = 2.91 lb/tCO 2 • R-134a Screw Chiller = 2.87 lb/tCO 2 • R-123 Centrifugal Chiller = 2.00 lb/tCO 2 • R-123 Screw Chiller = 1.97 lb/tCO 2 • R-1233zd(E) Centrifugal Chiller = 2.00 lb/tCO 2 • R-410A Unitary System = 1.80 lb/tCO 2 • R-32 Unitary System = 1.80 lb/tCO 2 Unit conversion: 1 lb = 0.4536 kg 9 LEED is an internationally recognised green building certification system developed by the non-profit organisation, the U.S. Green Building Council (USGBC). It includes a set of rating systems for the design, construction, operation, and maintenance of green buildings, homes, and neighbourhoods which aims to encourage building owners and operators to be more environmentally responsible and to use resources efficiently. Taking The Heat Off Cooling: A Greener Way to Cool Annex: Detailed Methodology 27 Annex: Detailed Methodology STEP 1 Calculation of the energy savings and resulting carbon emission reduction First, the cooling load profiles of the 14 buildings were generated using the information collected from the building owners via the following documents (in the order of most to least reliable): 1 Operating System Efficiency (OSE) Report • The cooling load profile was studied, typically from 9am to 6pm for commercial buildings and from 9am to 10pm for retail buildings. • Several buildings have night loads, but these were not reported, and hence assumptions were made: – The night load will be based on the last hour’s load (if no building management system raw data is available) and the equipment run status; – The night time cooling system efficiency was estimated based on equipment specifications. 2 Building Management System (BMS) Raw Data • The raw data was scrutinised, and any anomalies or outliers were removed. • The 24-hour cooling load profile and cooling system efficiency were then calculated using the BMS raw data. 3 Energy Audit Report • The cooling load hourly profile was studied and the values estimated. • Several buildings have night loads, but these were not reported, and hence assumptions were made: – The night load will be based on the last hour’s load (if no building management system raw data is available) and the equipment run status; – The night time cooling system efficiency was estimated based on equipment specifications. – The corresponding energy consumptions are calculated and verified with the energy end-use distribution. 4 Electricity Bills • Some buildings do not have any cooling system data to work with. To include these buildings in the study, assumptions were made based on other existing buildings’ operation data. The assumptions can be seen in the table on page 28. Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore Annex: Detailed Methodology 28 Assumptions used to determine cooling load of buildings with no cooling system data Input Parameters Space/Equipment Reasonable Assumptions Remarks Operating Hours Commercial 2,349 h/year • Based on BCA GM NRB 2015 typical commercial hours of 9am to 6pm daily, 5 days per week Cooling Load Commercial 50 W/m 2 GFA • BCA reported average commercial cooling demand of 72W/m 2 (For AC area) • Adjusted to 50 W/m 2 , based on AC area: non-AC area of 70%:30% Lighting Power Density (LPD) Commercial 15 W/m 2 • Baseline LPD from GM V4.1: SS530-2006 Data Centre (DC) 10 W/m 2 (With diversity of 20%) • Baseline DC LPD from GM V4.1, 20% diversity mainly for maintenance, if not usually off Equipment Power Density Commercial 12 W/m 2 • Based on average office operation data collected for Green Mark Projects that have completed verification work AC System Efficiency Chiller plant 0.750 kW/RT • Assumed average figure by SP Group and BSD Air Distribution Systems (Fan Coil Units, Air Handing Units and Precool Units) Computer Room Air- Conditioning (CRAC) 0.470 kW/RT • Derived from existing buildings’ data 0.327 kW/RT • Derived from typical CRAC efficiency of 0.350 W/CHM and difference in temperature (dT) of 17 degrees Celsius Unitary System (Split Units, VRFs/VRVs) 0.930 kW/RT (for split-units) 0.808 kW/RT (for VRF/VRV) • NEA Minimum Energy Performance Standards (MEPS) – As of June 2021 Taking The Heat Off Cooling: A Greener Way to Cool Annex: Detailed Methodology 29 After the cooling loads were generated, the annual energy consumption from the chiller plant and unitary systems of the 14 buildings can be calculated for both the BAU scenario and DDC network using the following formula: Energy consumption kWh year RTh = Combined cooling load x year System efficiencies kW RT Over time, chiller plants and unitary systems will inevitably suffer from degradation. This degradation was factored in to provide a more accurate projection and accounts for an increase in the energy consumption of the buildings. The chillers in the DDC network and the chiller plants of buildings with Green Mark awards are assumed to not suffer from any degradation as the DDC network operator or building owner is required to maintain certain efficiency levels in order to comply with the respective building codes or Green Mark award. The methodology to determine the resultant energy savings and carbon emissions reduction in the long term (over 30 years) is as follows: 1 Incorporate chiller plant and unitary systems degradation factors to the BAU chiller plant and unitary system efficiency. The assumptions are as follows: a Chiller plants degradation: 1% per year (for non-Green Mark buildings) b Unitary systems degradation: 5% per year c Proposed DDC baseline efficiency: 0.620 kW/RT d For buildings that are Non-Green Mark Certified, we assume that their minimum efficiency upon retrofit is 0.750 kW/RT (to comply with latest BCA Existing Building Legislation) e For buildings that are currently under BCA Green Mark Scheme, we assume that their minimum efficiency upon retrofit will maintain their respective Green Mark ratings f For Unitary Systems, we assume their minimum efficiency to be of 0.776 kW/RT for split-units and equivalent 3-tick efficiencies for VRFs respectively (according to latest NEA’s Minimum Energy Performance Standards) 2 Compute the BAU and DDC network energy consumption and resulting energy savings over a period of 30 years. The annualised average figures are obtained by dividing by 30. 3 Compute the carbon emissions reduction from energy savings over 30 years. The annualised average figures are obtained by dividing by 30. The carbon emissions reduction is calculated using the following formula: Carbon emissions reduction, 30 years (tonne-CO 2 e) = Total energy savings (kWh) x EMA Grid Emission Factor tonne-CO 2 e kWh Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore Annex: Detailed Methodology 30 STEP 2 Calculation of the reduction in refrigerant from stranded capacity & the resultant carbon emissions reduction Documents provided by the building owners were used to identify the installed capacity and refrigerant types of the chillers and unitary systems of the 14 buildings. Most of the installed chillers and unitary systems run on hydrofluorocarbon (HFC) refrigerants which have relatively high global warming potential (GWP). At present, the installed water-cooled chillers are running on either the R-134a or R123 refrigerants and unitary systems are running on the R-410A refrigerant. To reduce greenhouse gas emissions, Singapore authorities have introduced measures such as banning equipment that use high GWP refrigerants and introducing climate-friendly alternatives such as hydrofluroolefin (HFO) refrigerants which are lower in GWP. Examples of HFOs are R-1233zd(E) for chillers and R32 for unitary systems. The methodology to determine the reduction in refrigerant from stranded capacity and the resultant carbon emissions reduction is as follows: 1 Identify installed cooling capacity, replacement cycles, and refrigerant leakage rates of chillers and unitary systems, according to the LEED guidelines, in the BAU scenario and DDC network. The current installed capacities from all buildings amounts to 25,836 RT, where 24,446 RT is from chiller systems, and 1,390 RT is from unitary systems. The combined hourly cooling load demand from chiller plant and unitary systems is shown to peak at around 8,395 RT. In the proposed DDC network, the total utilised chiller capacity is 10,280 RT. 2 Identify the refrigerant type for the first and subsequent replacement cycles. The summary of installed cooling capacity, replacement cycle, refrigerant leakage rates, and refrigerant types for the BAU and DDC network scenarios are shown in the table below. Refrigerant Type Scenario System Capacity Assumed Leakage Rate Replacement Cycle 1 st cycle 2 nd cycle onwards BAU Unitary 1,390 RT 2.0% per year 10 years R-410A R-32 DDC network Chillers 24,446 RT 2.0% per year 15 years R-123, R-134a Chillers 10,280 RT 2.0% per year 15 years R-123, R-134a R-1233zd(E) R-1233zd(E) Taking The Heat Off Cooling: A Greener Way to Cool Annex: Detailed Methodology 31 3 Calculate BAU and DDC network carbon equivalent emissions from refrigerant leakage and refrigerant impact over a period of 30 years. The annualised average figures are obtained by dividing by 30. Carbon emissions (tonne-CO 2 e) Combined cooling Refrigerant lb = capacities (RT) x charge x RT Mass conversion factor tonne-CO 2 e lb from LEED guidelines 4 Calculate the resultant carbon equivalent emissions reduction for 30 years. The annualised average figure is obtained by dividing by 30. Carbon emission reduction, 30 years (tonne-CO 2 e) BAU carbon emissions, = 30 years (tonne-CO - 2 e) DDC carbon emissions, 30 years (tonne-CO 2 e) Certain key assumptions were made. Firstly, for the first replacement cycle, only carbon equivalent emissions due to refrigerant leakages were considered as there would not be any new installations. For subsequent replacement cycles, the impact on refrigerant changes due to the installation of new chillers and unitary systems were considered as well. The chiller and unitary systems were also assumed to be replaced with that of a refrigerant that complies with the latest authority requirements. By 4 th Quarter 2022, the National Environmental Agency (NEA) will ban the supply of water-cooled chillers using refrigerants with a GWP of more than 15 and household air-conditioners with GWP of more than 750. For the study, chillers previously using R-123 and R-134a refrigerants were assumed to be replaced with chillers using the R-1233zd(E) refrigerant (which has GWP of 1) after the first replacement cycle. Likewise, for unitary systems previously using the R-410A refrigerant, they would be assumed to use the R-32 refrigerant (which has GWP less than 750) after the first replacement cycle. Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore Annex: Detailed Methodology 32 STEP 3 Calculation of the total carbon emissions reduction from using the DDC network Resultant carbon emission reduction (tonne−CO 2 e) from using the DDC network over 30 years Carbon emission reduction = from energy savings + (tonne−CO 2 e) Carbon emission reduction from reduction in refrigerant used (tonne−CO 2 e) STEP 1 STEP 2 The annualised average figure is then obtained by dividing by 30. STEP 4 Calculation of the long-term economic value from using the DDC network over 30 years The economic value was calculated in terms of electricity bill savings, carbon tax savings, equipment replacement cost savings, maintenance cost savings, peak demand savings, and potential earnings if the chiller plant space were to be leased out over a period of 30 years. A summary of the calculation methodology and the assumptions made is shown in the table on page 33. Taking The Heat Off Cooling: A Greener Way to Cool Annex: Detailed Methodology 33 Calculation methodology and assumptions used to determine long-term economic value of the DDC network Source of Economic Value Calculation Methodology (30 Years Cumulative) Assumptions Electricity Bill Savings from Operational Energy Savings Energy Cost Saving over 30 Years (S$) = [BAU Energy Consumption −DDC Network Energy Consumption] x Tariff Rate Tariff Rate: S$0.1214/kWh Carbon Tax Savings Carbon Tax Reduction over 30 Years (S$) = [BAU Carbon Emissions −DDC Network Carbon Emissions] x Carbon Tax Rate at Respective Year Carbon Tax Rates (per tCO 2 e): Year 2021-2023: S$5 Year 2024-2029: S$10 Year 2030-2039: S$25 Year 2040-2055: S$50 Equipment Replacement Cost Savings from Reduction in Stranded Capacity Maintenance Cost Savings from Reduction in Stranded Capacity Peak Demand Savings from Operational Energy Savings Potential Earnings from Leasing Out Freed-up Chiller Plant Space Replacement Cost Savings, 30 years (S$) = BAU Replacement Cost – DDC Network Replacement Cost Where, Replacement Cost = No. of Replacement Cycles in 30 Years x Replacement Cost per Cycle for Respective Chiller Plants or Unitary Systems = [30 Years / Replacement Cycle Years] x [Replacement Cost Rates x Installed Capacity] Maintenance Cost Savings, 30 years (S$) = [BAU Chiller Plant Installed Capacity – DDC Network Installed Capacity] x Annual Maintenance Cost x 30 Years Peak Demand Cost Savings, 30 Years (S$) = BAU Peak Demand Cost – DDC Network Peak Demand Cost Where, BAU Peak Demand Cost (S$) = Sum of {[Annual Cooling Energy Consumption for Individual Buildings (kWh) / Annual Cooling Load for Individual (RTh)] x Individual Building Peak Cooling Demand (RT) Over 30 Years for All 14 Buildings} x Monthly Peak Demand Cost x 12 Months DDC Network Peak Demand Cost (S$) = Sum of {DDC Network Maximum Efficiency over 30 Years (kW/RT) x Annual Maximum Cooling Load of All 14 Buildings (RT) over 30 Years} x Monthly Peak Demand Cost x 12 Months Potential Earnings from Leasing Out Chiller Plant Room Space, 30 Years (S$) = [BAU Chiller Plant Room Area that may be converted to retail space (m 2 ) x Annual Retail Leasing Rate per m 2 ] + [BAU Chiller Plant Room Space that may be converted to office space (m 2 ) x Annual Office Leasing Rate per m 2 ] Replacement Cost Rates: DDC Network and BAU Chillers: S$1,500/RT BAU Unitary Systems: $650/RT Replacement Cycle Years: DDC Network and BAU Chillers: 15 years BAU Unitary Systems: 10 years Annual Maintenance Cost: S$54/RT Monthly Peak Demand Cost: S$8.90/kW DDC Plant Efficiency (kW/RT): 0.62 Monthly Leasing Rates: Retail: S$20 psf Office: S$6 psf Studying the Impact of a Brownfield Distributed District Cooling Network in Singapore References 34 References Fernaughty, Karen, and Danny Parker. “Evaluation of Air Conditioning Performance Degradation: Opportunities from Diagnostic Methods.” Florida Solar Energy Center, 17 Aug. 2018, publications.energyresearch.ucf.edu/wp-content/uploads/2018/09/FSEC-PF-474-18.pdf. Hicks, Robin. “Air-Con Addicted Singapore Seeks New Ways to Escape Urban Heat Trap.” Eco-Business, City Developments Limited and BCA, 28 Sept. 2018, www.eco-business.com/ news/air-con-addicted-singapore-seeks-new-ways-to-escape-urban-heat-trap/. Hill, Tim. “High Time Singapore Does Something about Its Inefficient Reliance on Air- Conditioning.” Today, 23 Feb. 2018, www.todayonline.com/commentary/high-time-singaporedoes-something-about-its-inefficient-reliance-air-conditioning. M, McAliney. “Arguments for Land Conservation: Documentation and Information Sources for Land Resources Protection.” Sacramento, CA: Trust for Public Land, 1993. Ministry, Of Foreign Affairs. “Towards a Sustainable and Resilient Singapore.” Sustainable Development Goals, 2018, sustainabledevelopment.un.org/content/ documents/19439Singapores_Voluntary_National_Review_Report_v2.pdf. Mokhtar, Faris. “Solving the Global Cooling Problem.” Bloomberg, 9 June 2020, www.bloomberg. com/news/features/2020-06-08/singapore-finds-a-way-to-make-air-conditioners-greener. Mokhtar, Faris. “This Is How Singapore Keeps Its Cool as the City Heats Up.” Bloomberg, 2 Dec. 2020, www.bloomberg.com/news/features/2020-12-01/singapore-climate-change-reducingheat-takes-trees-and-technology. “NEA Introduces Measures To Reduce Greenhouse Gas Emissions From Refrigeration & Air- Conditioning.” National Environment Agency, 4 Mar. 2020, www.nea.gov.sg/media/news/news/ index/nea-introduces-measures-to-reduce-greenhouse-gas-emissions-from-refrigerationair-conditioning. Tan, Audrey. “Five-Year Masterplan to Transform Tampines into Eco-Town.” The Straits Times, 24 June 2020, www.straitstimes.com/politics/five-year-masterplan-to-transform-tampinesinto-eco-town. Tan, Audrey. “Problem of Cooling in a Hotter Singapore.” The Straits Times, 9 Feb. 2021, www.straitstimes.com/singapore/environment/problem-of-cooling-in-a-hotter-singapore-0. Zhongmin, Shi, et al. “Building Regulations and Urban Policies as Incentives for Application of District Cooling Systems in Singapore.” World Sustainable Built Environment Conference 2017 Hong Kong, 2017, doi: doi.org/10.3929/ethz-a-010811301. Fuel Economy Data, Fuel Cost Calculator, vrl.lta.gov.sg/lta/vrl/action/ pubfunc?ID=FuelCostCalculator. Taking The Heat Off Cooling: A Greener Way to Cool Editorial: The Nutgraf Team: Sue-Ann Chia, Samantha Boh, Ignatius Koh Design: Studio Giraffe