EMA announces the continuation of measures to safeguard electricity supply until June 30, as global energy uncertainties persist.
Singapore’s Energy Market Authority (EMA) has announced that it will extend its energy security measures until June 30, 2024, due to the ongoing volatility in global energy markets. These measures, which were first introduced last October, are aimed at safeguarding the country’s electricity supply amid disruptions caused by global gas shortages and the ongoing conflict in Ukraine.
The global surge in gas prices, coupled with the uncertainty caused by geopolitical tensions, has heightened the risk of energy disruptions. As approximately 95% of Singapore’s electricity is generated from imported natural gas, consumers cannot avoid the rising energy prices linked to these global challenges, EMA explained.
The measures include the establishment of a standby LNG facility, allowing electricity generation companies (gencos) to draw on additional gas supplies when their regular sources are disrupted. Gencos are also required to maintain adequate fuel reserves, aligned with their generation capacity, to help ensure stable energy production. Moreover, EMA has amended the rules to allow gencos to use gas from the standby LNG facility proactively, if shortages are expected, to secure the country’s power grid.
EMA’s actions have contributed to stabilising the Uniform Singapore Energy Price (USEP), which stood at S$350 per megawatt-hour (MWh) in the first quarter of 2024, down from an average of S$460 per MWh in the final quarter of 2021. The agency also extended the Temporary Electricity Contracting Support Scheme (TRECS) to June 30, providing large energy consumers, such as businesses, with fixed-price electricity contracts, helping to mitigate the impact of fluctuating energy costs.
Under the TRECS initiative, gencos and retailers have voluntarily provided enough electricity to meet demand, ensuring price stability for businesses. In addition, EMA has worked with energy suppliers, including Sembcorp Power and Keppel Electric, to offer long-term fixed-price plans for businesses with average monthly consumption between 4MWh and 50MWh. These contracts, which can last from six months to three years, offer fixed rates of 25 cents per kWh, excluding third-party charges.
For households, the EMA highlighted the Household Support Package, which was introduced as part of Singapore’s 2022 Budget to alleviate the impact of rising electricity costs. Additionally, businesses facing financial pressures can tap into loan programmes provided by Enterprise Singapore to access the support they need.
EMA has also called for increased energy conservation efforts and pointed to the National Environment Agency’s (NEA) Energy Efficiency Fund, which helps eligible businesses adopt energy-efficient technologies. Furthermore, residents of one- to three-room Housing Board flats can benefit from e-vouchers under the Climate Friendly Households Programme, which can be used to purchase energy-efficient and water-saving products.
