SGX electricity futures an enabling factor for new competition
Independent retailers welcome the futures, the first in Asia outside Australia, as it helps them hedge risks
Singapore
THE emergence of new competition in the electricity market has been heralded by a single factor: the new electricity futures on the Singapore Exchange, which have enabled independent retailers to hedge their risks.
Yet, with liquidity still lacking in the futures market, incumbents warn that a lack of effective hedging could result in new entrants going bust, posing risks to consumers and denting confidence in the overall market.
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