The SP Group subsidiary intends to acquire ChargEco; the parties say the deal will not substantially lessen competition
[SINGAPORE] The Competition and Consumer Commission of Singapore (CCCS) is seeking public feedback on SP Mobility’s proposed acquisition of ChargEco, which is also an electric vehicle (EV) charging point operator.
On Friday (Jan 2), the competition watchdog said it accepted a joint application from the two companies on Dec 22 for a decision on whether the transaction would be anti-competitive.
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 Singapore.
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.
The two operators acknowledged that they compete in Singapore’s market for the supply of public EV charging points, including those in Housing & Development Board (HDB) car parks and publicly accessible ones in shopping malls and other commercial buildings.
They also submitted that they compete for the supply of private EV charging points. These are shared chargers whose use is limited to a targeted group of users, as well as single-user chargers in restricted locations.
However, the companies noted that they do not compete in the supply of CSMS, since ChargEco employs a third-party provider.
They said that the proposed acquisition will not substantially lessen competition, given that:
- There are numerous existing and potential competitors in the market for public and private EV charging points;
- The industry’s bidding nature places pressure on charging point operators – whereby the Land Transport Authority and its subsidiary, EV-Electric Charging, can ensure competitive pricing and quality services through the tenders and contracts they run for government sites;
- End-customers – such as EV drivers – and landlords face low costs of switching between different charging point operators;
- End-customers routinely access EV charging points at various locations for convenience, and are not tied down to specific charging points.
CCCS intends to gather views on how individual drivers choose where to charge their EVs, and whether these locations are spread across Singapore or limited to select places within a region.
The competition watchdog also aims to find out if public and private EV charging points are suitable alternatives to each other, based on factors such as pricing reliability, convenience and charging speeds.
Likewise, it seeks views on whether public EV charging points at HDB car parks and non-HDB ones are suitable alternatives to one another, based on the same factors.
It is also collecting feedback on how the proposed deal will affect the availability, pricing, quality or quantity of public and private EV charging points offered by other operators.
The public consultation is open until 5 pm on Jan 16.
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