Sale / Purchase of Electricity

TransactionsGST Treatment

Sale of Electricity

Standard-rated supply

Purchase of Electricity

Taxable purchase

Contract for Differences

TransactionsGST Treatment

Net realised gain or loss by Electricity Generation Company (Genco) / Retailer
= Hedge Quantity x (Contract Reference Price - Hedge Price)

Exempt supply

Settlement through Market Operator
= Hedge Quantity x Uniform Singapore Energy Price (USEP)

No supply

Payment for bilateral contract outside Market Operator
= Hedge Quantity x Hedge Price

No supply

Vesting Contract

TransactionsGST Treatment

Net realised gain or loss by Genco / Market Support Services Licensee (MSSL)
= Hedge Quantity x (Vesting Contract Reference Price - Hedge Price)

Exempt supply

Passing of vesting gains / losses by MSSL to Retailer

No supply

Passing of vesting gains / losses by MSSL / Retailer to contestable consumer

Taxable supply

Passing of vesting gains / losses by MSSL to non-contestable consumer

Taxable supply

Passing of vesting gains / losses by Retailer to Genco (as part of the Contract for Differences between them)

Exempt supply

Settlement through Market Operator
= Hedge Quantity x (Vesting Contract Reference Price - Hedge Price)

No supply

Price Neutralisation

TransactionsGST Treatment

Price neutralisation for companies with embedded generator

No Supply

For more information on the supply of electricity in the wholesale market, please refer to GST Guide for the Market Participants in the National Electricity Market of Singapore (NEMS) (166KB).

Supply of Electricity to Master-Metered and Sub-Metered Consumers in the Retail Market (under en-bloc electricity purchase arrangement)

Under the en-bloc electricity purchase arrangement, the licensed electricity retailer sells electricity to the landlord of a building with master-metered account (i.e. master-metered consumer). The landlord in turn sells electricity to the tenants (i.e. sub-metered consumers).

There are two separate supplies of electricity under this arrangement.

The first supply is made from the electricity retailer to the master-metered consumer, and the second supply is from the master-metered consumer to the sub-metered consumer.

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The GST-registered electricity retailer is required to charge the master-metered consumer GST on all the electricity used in the entire building.

Subsequently, the GST-registered master-metered consumer is required to charge GST to each sub-metered consumer on the portion of the electricity used by them.

The retailer may issue invoices and collect payment on behalf of the master-metered consumer from the sub-metered consumers.

The master-metered consumer is still liable to account for GST on the portion of electricity charged to the sub-metered consumers in its GST returns.

For more information, please refer to GST: Supply of Electricity to Master-Metered and Sub-Metered Consumers (256KB).

  • I am a GST-registered master-metered consumer. Am I entitled to recover the GST charged by the seller of electricity?

    Yes. The input GST can be claimed if you can satisfy all the conditions for input tax claim.
  • My landlord (master-metered consumer) is not GST-registered. Am I or is my landlord entitled to claim the GST incurred on purchase of electricity?

    No. Neither you nor the landlord is entitled to the input tax claim. The landlord is not entitled to input tax claim because he is not a GST-registered person. Hence, GST is not charged on the landlord's supply to you. You are not entitled to any input tax claim.
  • I am GST-registered and my landlord has charged me GST for the purchase of electricity. Am I entitled to claim input tax?

    Yes. The input GST can be claimed if you can satisfy all the conditions for input tax claim.

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