Singapore poised to launch electricity futures in October

Singapore

SINGAPORE is set to launch the trading of electricity futures this October, after a six-month trial starting in April, a Singapore Exchange (SGX) official disclosed yesterday. This will enable consumers to lock in their electricity prices as far as two years down the road.

While the dates are subject to final approval of the Monetary Authority of Singapore, "we think we are on time", the official added. Speaking at a Seraya Energy forum organised by the genco for its customers, Matthias Obert, SGX vice-president and its director of commodities, said the futures market here will provide new options for consumers to procure and hedge electricity. "It helps cancel the short-term fluctuations in the spot market", when prices can fluctuate widely.