After sky-high prices, Singapore's power sector is due for some adjustments in 2022

A MANIC year for Singapore's electricity sector - rattled by gas curbs and skyrocketing spot prices, and exacerbated by a global energy crisis - has turned into a wake-up call for the energy regulator.

Singapore's Energy Market Authority (EMA) is mulling tweaks to market rules, which could result in some semblance of price normalcy in the wholesale market in the event of a gas shortfall. The move may offer some comfort for electricity retailers, who have endured much pain since the second half of this year from extraordinary spikes in spot electricity prices. The volatile prices and inability to hedge risks on the local bourse's futures market drove 5 players to close shop.

"The (proposed) stronger regulatory controls are welcomed in a time of uncertainties. Left to market conditions, prices will continue to be pegged to externalities - making stabilisation challenging," said Singapore-based KPMG's power and utilities director Lim Wen Bin.