EMA to stop temporary electricity scheme from May 1 as volatility eases

THE Energy Market Authority (EMA) on Monday (Mar 20) announced that it will be discontinuing the Temporary Electricity Contracting Support Scheme (Trecs) come May 1. 

EMA noted that global energy prices have been “less volatile” in recent months. “The emergency measures have stabilised our electricity markets,” said the authority, adding that more longer-term retail contracts are now also available to large consumers.

Consumers who are on Trecs or wholesale electricity prices are encouraged to consider entering into retail contracts for greater price certainty, said EMA. This, said EMA, is to safeguard those consumers and their organisations against potential high and volatile electricity prices that could occur. 

Since September 2021, there have been various emergency measures put in place to manage the impact of the global energy crisis. Trecs was one such measure. 

Under Trecs, which was introduced in December 2021, EMA worked with gencos and electricity retailers to offer monthly fixed price plans or plans with a significant fixed price component for large consumers with an average monthly consumption of at least 4,000 kilowatt-hours.

EMA said it would build on the lessons learnt from the recent energy crisis and introduce enhancements to strengthen the foundations of Singapore’s energy market. Such enhancements include previously announced steps to institutionalise crisis management measures such as the Standby LNG Facility (SLF) to safeguard energy security, directing gencos to generate electricity using gas from the SLF if there are potential shortages in energy supply, and requiring gencos to maintain sufficient fuel for power generation. 

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EMA will also be introducing other enhancements such as tightening the regulatory requirements on electricity retailers to strengthen consumer protection and exploring ways to centrally aggregate gas procurement to obtain more secure and long-term contracts. These enhancements will be progressively rolled out in the coming months, EMA said. 

“EMA will continue to monitor the situation closely and take the necessary steps to ensure our energy markets continue to function properly,” the authority said.