EMA to cap wholesale power prices from Jul 1; but checks show fewer companies rely on wholesalers

THE Energy Market Authority (EMA) will introduce a temporary price cap on wholesale electricity prices to prevent huge swings in electricity prices.

The cap, which will take effect from Jul 1, will be calculated using a formula that includes the long-run marginal cost of generation capacity, EMA said in a paper published on its website on Friday (Jun 16).

The move from EMA comes as Singapore households and businesses face sky-high electricity costs amid the global energy crisis due to the Russia-Ukraine war.