POWER SUPPLY LTD (Revamp of billing system)

Dr Wang Kai Yuen asked the Minister for Trade and Industry whether Singapore Power Ltd (SP) (i) has completed its revamp of its billing system and how many percent of its customers are now being billed correctly on time; (ii) is in compliance with the service standards established by the Public Utilities Board with regard to billing customers on time; and (iii) has an assistance scheme to help those customers who do not have the means to pay the lump sum payment as a result of SP's failure to bill over the preceding months.

BG George Yong-Boon Yeo: Mr Speaker, Sir, Power Supply Ltd had implemented a new Customer Management System to replace its old billing system. However, during the transition period in June last year, Power Supply encountered data migration problems, which affected the system operation. This resulted in a delay in the generation of utilities bills as well as inaccuracies in billing amounts. As at December last year, Power Supply had not completed the revamp of its computerised billing system. They tried to make improvements and the improvements by the system implementor created even more bugs. So they had brought in a team from the original software supplier which is SAP of Germany, a very reputable firm, and they are working hard to resolve the problem. Today, 88% of customers are receiving their monthly bills on time. But this is obviously far from being good enough.

Power Supply is required under the Electricity Supply Code to bill its customers promptly every month. Since July last year, PUB had been receiving complaints from customers about the delay in billing. PUB took this up with Power Supply immediately and directed them to take swift action to correct its billing system. For breaching the Electricity Supply Code, PUB had imposed a total fine of $150,000 on Power Supply - comprising $100,000 in October for the delay in billing and a further $50,000 in December for failure to resolve its billing problems. This is to send a strong signal to Power Supply that we take the matter very seriously although it provides no comfort to customers.

To lessen the impact on customers, Power Supply has arranged to space out bills sent to customers by at least 18 days. The payment schedule for these bills was similarly extended. Customers would not be required to pay a lump sum for the delayed bills, if they do not wish to do so. They can pay by instalments. Power Supply has also given the assurance that utilities supply will not be disconnected due to unpaid bills during this period.

Power Supply has indicated that they have overcome the teething problems of their new billing system and more bills are now being dispatched. They expect significant improvements by March this year and the billing process should be normalised by the middle of this year. So it is taking a very long time.

Dr Wang Kai Yuen (Bukit Timah): I would like to ask the Minister whether he considers the penalty imposed so far deterrent enough to Power Supply. Mr Speaker, Sir, the amount seems to be rather small in comparison to the operation of Power Supply, being a billion dollar company. Secondly, how do we prevent Power Supply, being a monopoly, to pass on the penalty to the consumers anyway?

BG George Yong-Boon Yeo: Mr Speaker, Sir, I suppose PUB could have increased the fine on Power Supply, but that would not have resolved the problem. Power Supply had inherited a mainframe computer and, to prepare for a liberalised energy market, they had embarked on a programme to install a new billing system. So they got SAP from Germany to provide the software and a system implementor from New Zealand to operationalise it. The system was tested last year. It worked during the test. They encountered enormous problems when the system was implemented, tried to fix the problems, new bugs appeared. So one thing after another. The system implementor is no longer working on the problem because they do not seem to be making very much headway. We have gone back to the original software supplier and we hope in the coming months, the problem can be solved. It is very unfortunate and, being a regulated monopoly, PUB and MTI must take overall responsibility for the problems that have been caused to consumers.

What of the future? Once the retail market is opened up, then billing becomes competitive. And in fact, the company doing the billing may not be the one actually supplying the electricity. So a market will develop and we hope that the market will regulate the quality of service.

Assoc. Prof. Toh See Kiat (Aljunied): Mr Speaker, Sir, I would like to ask the Minister whether Power Supply would consider stating explicitly in its bill, perhaps in red, that the customer may be able to pay in instalments, if he so wishes.

BG George Yong-Boon Yeo: Mr Speaker, Sir, I will put this to PUB.

Dr Wang Kai Yuen: I would like to ask the Minister how do we restore confidence of the consumers on the billing sent out by Power Supply because there are reported incidents where those bills were outrageously way off the mark and yet they were sent out. Also, are there customers who, because of such mistakes, felt that they should terminate their GIRO transactions with Power Supply?

BG George Yong-Boon Yeo: Mr Speaker, Sir, I agree with Dr Wang that the problems in the billing have damaged the reputation of Power Supply and public confidence in the entire billing system. So the only way for us to go forward is to freely admit our mistakes, be very transparent in what we have done, what we hope to do and to restore confidence bit by bit, layer by layer. It will be painstaking work. Power Supply must work with MPs and community leaders to explain the situation fully to members of the public. It will take time.

Mr Chiam See Tong (Potong Pasir): Has Power Supply taken steps to refund the consumers whom they have wrongly billed?

BG George Yong-Boon Yeo: Mr Speaker, Sir, yes, of course, and as quickly as possible.