Competition watchdog seeks public feedback on SP Mobility’s proposals regarding ChargEco acquisition

[SINGAPORE] The Competition and Consumer Commission of Singapore (CCS) is seeking public feedback on a series of commitments proposed by SP Mobility to address antitrust concerns surrounding its acquisition of ChargEco, which is also an electric vehicle (EV) charging point operator.

The consultation, which runs from Monday (Mar 30) to Apr 13, follows a phase one review that had identified potential competition risks related to EV-charging services in Housing & Development Board (HDB) estates.

The watchdog’s primary concern stems from a large-scale tender awarded in November 2022. 

Both SP Mobility and ChargEco were awarded contracts to operate charging points in HDB car parks in the east region, covering major estates such as Bedok and Tampines.

SP Mobility, a wholly owned subsidiary of state-owned grid operator SP Group, owns and operates an EV-charging network spanning retail, commercial, industrial and residential locations in the Republic. 

The company operates its EV-charging network – which is among the largest in the city-state – using its own charging system management system (CSMS) that provides end-users, such as EV drivers, with services related to the use of its network.

SP Mobility also offers services pertaining to the supply of EV-charging points, such as their installation, operation and maintenance.

Similarly, ChargEco owns and operates an EV-charging network in Singapore, and also provides services related to the supply of EV-charging points.

However, unlike SP Mobility, it operates and manages its EV-charging network through a third-party CSMS provider.

Prior to the proposed transaction, the two firms acted as direct competitors in these areas. CCS noted that feedback from earlier consultations suggested that the merger could significantly weaken the competition to supply EV-charging services in the east.

Proposed safeguards for drivers

To mitigate these concerns and ensure that the transaction does not disadvantage consumers, SP Mobility has offered a set of behavioural commitments that would last for three years following CCS’ final decision.

Key pillars of the proposal include:

• Rates for charging EVs at the parties’ charging points in the relevant HDB estates will be frozen at pre-acquisition levels, except when SP Mobility needs to pass on costs from regulators or factors that are beyond the firm’s control.
• Any discounts or rebate schemes offered by the merged entity will be applied in a way that disadvantages drivers solely because they are charging in the east region.

SP Mobility has also pledged to notify CCS of any price adjustments at these specific sites.

Public consultation

The competition watchdog is now assessing whether these commitments are sufficient to maintain a competitive landscape. 

Members of the public and industry stakeholders can submit their views through the official online form or via e-mail to CCS.

The feedback window closes at 5 pm on Apr 13.