Wholesale power buyers expected to face new financial, consumption rules to deal with price volatility

COMPANIES that want to be on Wholesale Electricity Price (WEP) plans could first have to show a strong financial track record and a minimum level of energy consumption, industry players and observers said in response to news that Singapore’s energy regulator intends to impose new guardrails for the sector.

The Energy Market Authority (EMA) said last week it intends to tighten the eligibility criteria for consumers on WEP plans, “so that only those who are equipped to deal with the risks of price fluctuations can purchase electricity at wholesale electricity prices”.

It did not give details of the proposed criteria, but said it will conduct industry and public consultations over the next few months.