The Competition and Consumer Commission of Singapore (CCS) has conditionally approved the proposed takeover of electric vehicle (EV) charging point operator ChargEco by its rival SP Mobility (SPM).
But one of the conditions states that EV charging prices should not be raised unless “under certain limited circumstances”, said CCS in a media release on Thursday (28 May).
Source: SP Group
SPM and ChargEco had submitted a joint application on the proposed transaction in December last year to determine if it would be anti-competitive, CCS said.
Feedback gathered during CCS’s first public consultation in January raised concerns that the proposed transaction could reduce competition, as both companies already operate EV charging points at HDB carparks in eastern Singapore.
They had thus previously been rivals before the proposed acquisition.
Source: SPM
The overlap dates back to November 2022, when the two firms won contracts under Singapore’s first large-scale tender to roll out EV charging points at HDB carparks nationwide.
Under the tender, the companies were assigned contracts to operate in estates in the east, such as Bedok and Tampines.
In response to the competition concerns, SPM offered to make two commitments with respect to the EV charging points in the east.
It would firstly ensure that the charging prices would not exceed the initial price offered, unless adjustments are necessary to pass on regulatory costs or costs from other factors beyond SPM’s control.
Source: ChargEco on Facebook
Second, any discounts or rebates offered to EV drivers will be applied fairly and not discriminate against users simply because they use charging services in the east.
These terms will last for three years from 28 May, with SPM pledging to notify CCS of any price adjustments made in the east, CCS said, adding:
CCS may request that SPM appoint a monitoring trustee if it suspects non-compliance with the commitments.
Another public consultation exercise was held between 30 March and 13 April to evaluate SPM’s commitments.
After considering feedback from third parties and members of the public, CCS approved the transaction “conditional on SPM implementing and complying with the commitments”.
CCS extended its appreciation to those who took the time and effort to provide feedback during the consultation process.
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Featured image adapted from SP Group on Facebook and ChargEco on Facebook.