The electricity Act
This is the principal legislation governing the electricity sector and the National Electricity Market of Singapore (NEMS). The rights and obligations of the participants in the wholesale and retail markets are set out principally in the wholesale market rules, and in the electricity licenses and codes of practice issued by the Energy Market Authority (EMA). 

Barriers to Entry :
Electricity licenses
Under the Electricity Act, an entity may not engage in certain electricity-related activities unless it has been issued an electricity license by the EMA (or it is exempted from holding a license)
The activities that require an electricity license are:
-Operation of any wholesale electricity market

- Generation of electricity 

- Transmission of electricity 

- Provision of market support services

- Retailing electricity

-Trading in the wholesale electricity market 

-Importing or exporting electricity. Holding of an electricity license is not sufficient to trade in the wholesale market, 

The objectives of the market rules are :
-To establish and govern efficient, competitive and reliable markets for the wholesale selling and buying of electricity and ancillary services in Singapore

-To provide market participants with non-discriminatory access to the transmission system

- To facilitate competition in the generation of electricity

- To protect the interests of consumers with respect to prices, and the reliability and quality of electricity service

in a monopoly market, the marginal revenue curve and the demand curve are distinct and downward-slopping. Production occurs where marginal cost and marginal revenue intersect.

Market Power
Monopolies have much more power than firms normally would in competitive markets, but they still face limits determined by demand for a product. Higher prices mean lower sales. But in this case, it is different as there is no substitutes to electricity. Therefore, monopolies must make a decision about where to set their price and the quantity of their supply to maximize profits. They can either choose their price, or they can choose the quantity that they will produce and allow market demand to set the price.