Electricity prices in Singapore have collapsed following the initial start-up of Hyflux's 411 MW Tuaspring power plant. Wholesale Electricity Prices are now below the operating cost of a CCGT plant. Given our forecast for sustained low prices, the economic viability of generation companies, in particular the newer ones, will be in question. Consequently, the Energy Market Authority (EMA) may eventually have to step in to offer policy incentives. The market may also start to see some M&A activity.