Merger of EV charging firms SP Mobility and ChargEco conditionally accepted by consumer watchdog
Sign up now: Get ST's newsletters delivered to your inbox
The merger has been accepted on some conditions, which include not raising EV charging prices at Housing Board carparks in the east.
PHOTO: LIANHE ZAOBAO
- SP Mobility's takeover of ChargEco was conditionally approved by Singapore's consumer watchdog CCS on May 28.
- Conditions include no EV charging price hikes and ensuring fair access to discounts at HDB carparks in the east.
- These commitments last three years; SP Mobility must notify CCS of price changes, and CCS can appoint a monitoring trustee.
AI generated
SINGAPORE – Electric-vehicle (EV) charging service provider SP Mobility’s takeover of its competitor ChargEco has been conditionally approved by the consumer watchdog here.
In a media statement on May 28, the Competition and Consumer Commission of Singapore (CCS) said the merger has been accepted on some conditions, which include not raising EV charging prices at Housing Board carparks in the east.
Both EV charging firms were awarded contracts for chargers at HDB carparks in the east, under a large-scale roll-out of public EV charging points by the Land Transport Authority (LTA) in November 2022.
Prices cannot be raised unless it is to pass on costs from regulators or factors beyond SP Mobility’s control. Another condition is to ensure that EV drivers who charge up at these carparks will not be put at any disadvantage in terms of access to discounts or rebate schemes.
These commitments by SP Mobility will last for three years from May 28, and the company also pledged to notify CCS of any price adjustments for the EV chargers at HDB carparks in the east during that time.
It will also need to inform EV-Electric, the LTA subsidiary responsible for the roll-out of EV chargers, of these price changes.
The conditional approval comes after CCS evaluated feedback from third parties and members of the public following the second public consultation exercise on SP Mobility’s commitments, which took place between March 30 and April 13.
The consumer watchdog said it considered SP Mobility’s pledges to be “sufficient” in addressing anti-competitive concerns, and has therefore conditionally approved the merger.
CCS will have the right to request that SP Mobility appoint a monitoring trustee, or an independent third party, to ensure compliance if it suspects that the operator is not keeping to its commitments.
Earlier in January, it held a first public consultation following a joint application by SP Mobility and ChargEco to determine if the former’s acquisition of the latter would be anti-competitive.
While the acquisition includes ChargEco’s charging points across the island, those in HDB carparks in Singapore’s east region were identified as a concern during the public consultation. There are no conditions placed on the chargers elsewhere in Singapore.
Mr Richard Chin, general manager of ChargEco, said its immediate priority is to ensure a smooth transition for its customers and stakeholders, while continuing to serve them well.
He added that customers can continue using the existing ChargEco app and charging points, and there is “no change to the customer service journey at this stage”.
Mr Dean Cher, managing director of SP Mobility, said the transaction will now progress towards completion, after CCS’ conditional approval of the acquisition.
SP Mobility is part of utilities provider and national grid provider SP Group, while ChargEco is a venture between SMRT subsidiary Strides Mobility and integrated energy company YTL PowerSeraya.
Based on EV-Electric’s website, ChargEco has 1,100 chargers and SP Mobility has 1,575 chargers. There are 8,223 public charging points across Singapore. Other operators in the charging network include Charge+, CDG Engie and Shell.
