EMA extends measures to secure energy supply and stabilize prices until end of March 2023

0

SINGAPORE – Amid a lingering global energy crisis, the Energy Market Authority (EMA) is extending measures it had previously rolled out to secure Singapore’s energy supply and stabilize energy prices until at the end of March 2023, she announced Thursday, June 16.

At the same time, the EMA underlined that although it was unable to protect consumers against rising electricity prices, it was essential that global volatility did not disrupt the electricity supply of Singapore and interferes with the functioning of local energy markets.

The energy authority had in October last year put in place measures which included putting a liquefied natural gas (LNG) plant on standby, directing power generation companies (gencos) to maintain sufficient fuel for electricity generation, as well as modified market rules. These rules allow the EMA to order generators to preemptively generate electricity using gas from the LNG facility – in the event of a potential energy supply shortage in the wholesale market. Singapore Electricity – to maintain the safety and reliability of the electrical system.

The temporary measures were reviewed in March and extended until June 30 this year.

The EMA is also extending the Temporary Electricity Contracting Assistance Program (Trecs). The program mitigates the impact of price volatility in the wholesale electricity market on large electricity users, including shopping malls and cafes.

Trecs was rolled out in January to help non-residential users consuming at least 4 megawatt-hours (MWh) of electricity obtain fixed-price packages from generators.

The EMA said Sembcorp Power and Keppel Electric will continue to offer longer-term fixed price plans for consumers with an average monthly consumption of 4 MWh to 50 MWh. The procurement window for July this year will open on Friday.

The authority added that it will continue to monitor the situation and consider extending the measures if necessary, depending on the global energy situation and its impact on Singapore.

Singapore depends on imported natural gas for around 95% of its electricity needs, and prices there have risen since September last year, alongside rising gas prices around the world.

This was triggered by increased economic activity following a recovery from the Covid-19 pandemic, as well as cold winter months around the world that depleted natural gas reserves.

The Russian-Ukrainian war has further exacerbated the risk of gas and oil disruptions.

Russia supplies around 40% of Europe’s gas needs via pipeline, according to the International Energy Agency.

“Global gas prices have risen significantly due to strong demand and tight gas supply. Energy markets are expected to remain volatile with the protracted conflict in Ukraine coupled with seasonal increases in demand for gas. energy over the coming winter months,” the EMA said in a statement. , noting that countries in Asia and Europe have started to secure their fuel supplies, including gas, in anticipation of winter.

Share.

About Author

Comments are closed.