Singapore buys natural resources from other countries as it is a small country lacking in natural resources. Due to the limited amount of resources and increasing demands, scarcity occurs. Therefore resources such as electricity, oil, water, etc comes with a price. The rise and fall of the price depends on a few factors.
In this report, we would be talking about the raise of electricity pricing in Singapore which is controlled by Singapore Power Services (SP).
2. Â Â Â Â Â Â Â Â Findings
2.1 Â Â Â Monopoly Characteristics
The SP is a monopolist firm as it is the only seller of a product with no close substitutes available in Singapore to provide each household with electricity supplies. It’s shown from its monopoly characteristic.
Barriers to Entry
SP is a legalised firm by Singapore’s government. SP is a licensed company and have the authority to supply electricity given by the government. “According to SP Services, a subsidiary of the Singapore Power Group “(Teo, 2010) This shows that SP is a firm subsidised by the government. This support from the government caused new firms to be unable to enter the market easily as the subsidies allows them to provide a cheaper services and goods to the consumers. This factor allowed SP to dominate the market in supplying electricity throughout Singapore in the long run.
澳洲作业代写 Report On Rise In Electricity Pricings