SINGAPORE - The Energy Market Authority will look into protecting more buyers from volatile prices by restricting the wholesale electricity price market to those who can withstand its fluctuations.
Singapore’s electricity market had been “severely tested” during the recent global energy crisis, with the exit of six electricity retailers in 2021, which suggests that several had not been sufficiently prepared against market volatilities and had taken large unhedged positions, Mr Gan said. These enhancements to strengthen the energy market structure will facilitate Singapore’s transition to cleaner energy sources as it commits toThis year, Singapore is facing “a perfect storm” of soaring energy prices induced by shortages in fossil fuel production, triggered by underinvestment in energy projects and exacerbated by the Ukraine war, as well as severe disruptions in renewable power around the world, he noted.
“This caused prices in the wholesale market to surge even further, adversely impacting some consumers who purchased electricity directly from the wholesale market.” A competitive tender called by the Government will replace the current system where generation capacity is decided by private generation companies.