Electricity retailers to offer longer-term contracts for businesses: EMA

BUSINESS consumers are now able to enjoy longer-term fixed price contracts at competitive rates, announced the Energy Market Authority (EMA) on Thursday (Mar 10).

In its press statement, EMA said it worked with electricity retailers to make this happen in view of the current global energy crunch, which has led to increased price volatility in the wholesale electricity market such that some business consumers have faced difficulties in securing fixed price electricity contracts.

Sembcorp Power and Keppel Electric have responded by offering long-term fixed price plans to consumers with an average monthly consumption from 4 megawatt hours (MWh) to 50MWh.

Their price plans come with a longer contract duration ranging from 6 months to 3 years, with the electricity rate for the 2 to 3-year contracts priced at S$0.25 per kilowatt hour (kWh) - notwithstanding third party charges, such as transmission and market charges.

EMA noted that this rate is lower than the rate offered for the Temporary Electricity Contracting Support Scheme (TRECS) of S$0.399 per kWh for March 2022.

Commenting on the latest contracts, EMA said it encourages eligible consumers without a retail plan to consider these contracts for greater price certainty.

Contracting details for the TRECS and other retail contract options for April 2022 will be made available at the EMA website next week.

TRECS was first introduced by EMA in December 2021 for businesses that consume more and would like to be on retail price plans. Under this scheme, eligible users could sign up and pay for electricity at a fixed rate under 1-month fixed price plans for January 2022.

READ MORE:

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