EMA extends measures to secure energy supply, stabilise prices

THE Energy Market Authority (EMA) will extend measures it has rolled out to secure Singapore's energy supply and stabilise energy prices until end-June, it said on Thursday (Mar 31).

These measures include having a standby liquefied natural gas (LNG) facility, directing generation companies (gencos) to maintain sufficient fuel for power generation, as well as modified market rules.

EMA will also extend the Temporary Electricity Contracting Support Scheme (TRECS), including contracts with significant fixed price components.

The move comes amid a global energy crunch which saw gas prices surging due to high demand and tight gas supply. The ongoing Russia-Ukraine crisis has exacerbated the risk of gas and oil disruptions.

Since October 2021, EMA has introduced modified market rules directing gencos to pre-emptively draw from a standby LNG facility to generate electricity when their own natural gas supplies are disrupted. The same can be done if there are potential shortages in energy supply in the Singapore wholesale electricity market.

Gencos were also directed to maintain sufficient fuel for power generation based on their available generation capacity, on top of an existing requirement to upkeep fuel reserves as part of their licence.

EMA said its measures have helped ensure sufficient fuel and electricity supply. They also stabilised the Uniform Singapore Energy Price to around the cost of electricity production - an average of S$350 per MWh (megawatt hour), compared with S$460 per MWh in Q4 2021.

"While we cannot shield consumers from higher electricity prices, it is vital that global volatility does not disrupt our electricity supply and impair the functioning of our energy market," EMA said.

Since January 2022, EMA has been working with electricity retailers and gencos through TRECS to help consumers secure fixed price plans and retail contracts with a significant fixed price component.

It has also worked with Sembcorp Power and Keppel Electric to offer long-term fixed price plans (6 months to 3 years) for business consumers with an average monthly consumption of 4-50 MWh.

Eligible households will stand to benefit from the Household Support Package introduced during Budget 2022. They will receive double the quantum of their quarterly U-Save vouchers in 2022 to defray the costs of higher electricity bills.

Meanwhile, businesses that need financial support can tap on loan programmes offered by Enterprise Singapore.