SINGAPORE – A scheme that enables giant vitality customers to purchase electrical energy at capped costs will likely be prolonged until June 30 in view of the worldwide vitality crunch and the Ukraine disaster.
The Energy Market Authority (EMA) stated on Thursday (March 31) that the scheme and measures to safe Singapore’s vitality provide and stabilise the vitality market have been prolonged due to the worldwide vitality state of affairs.
But it warned that the majority shoppers will face greater electrical energy payments after they renew their contracts, or within the case of regulated tariff shoppers, throughout the quarterly tariff changes.
Singapore depends on imported pure fuel for about 95 per cent of its electrical energy wants, and costs right here have shot up since September final 12 months after fuel costs began rocketing worldwide.
This was sparked by elevated financial exercise following a restoration from the Covid-19 pandemic, together with chilly winter months that depleted pure fuel reserves.
While the worldwide fuel disaster was anticipated to ease as soon as winter ends, the Russia-Ukraine struggle has additional exacerbated the chance of disruptions in fuel and oil, stated EMA on Thursday.
The impression of costs is most fast on the 1 per cent of shoppers who buy electrical energy straight from the wholesale market – the place electrical energy costs fluctuate each half hour, it stated.
This has led the regulator to increase the Temporary Electricity Contracting Support Scheme (Trecs), which helps these giant electrical energy customers, until the tip of June.
This is the second time that Trecs has been prolonged because it was launched in January this 12 months to cushion the impression of unstable costs within the wholesale electrical energy market on giant electrical energy customers, which embrace purchasing malls and occasional outlets.
These customers which have a mean month-to-month consumption of a minimum of 4 megawatt-hour (MWh), or 4,000 kilowatt-hour (KWh) – about 10 occasions the typical month-to-month consumption of a four-room Housing Board flat – can purchase electrical energy solely below fastened worth plans from retailers or from the wholesale market.
They can’t purchase on the regulated tariff supplied by SP Group.
Under Trecs, giant electrical energy customers can safe month-long fastened worth plans and retail contracts with vital fastened worth parts.
For April, the fastened charge below Trecs has been capped at 37.268 cents per kWh.
So far, collaborating energy era corporations (gencos) and retailers have supplied “sufficient supply” below Trecs to fulfill demand on a “voluntary basis”, EMA added.
Earlier in March, EMA additionally introduced that it has labored with Sembcorp Power and Keppel Electric to assist enterprise shoppers dealing with difficulties in securing long-term fastened worth plans.
These plans vary from six months to a few years, with the fastened charge for 2 and three-year plans priced at 25 cents per kWh, excluding third-party expenses corresponding to transmission and market expenses.
This comes amid stiff competitors for fastened worth plans after the worldwide vitality disaster prompted six electrical energy retailers to exit the market right here and one other two to prematurely terminate some contracts.
EMA stated on Thursday that it’s going to additionally lengthen measures launched in October final 12 months to make sure adequate gasoline and electrical energy as the worldwide vitality crunch persists.
These measures embrace establishing a standby liquefied pure fuel facility, which gencos can draw from to generate electrical energy when their pure fuel provides are disrupted.
Such measures have stabilised the Uniform Singapore Energy Price to round the price of electrical energy manufacturing – a mean of $350 per MWh within the first quarter of this 12 months, in contrast with a mean of $460 per MWh within the fourth quarter of final 12 months, stated EMA.
Households and companies affected by the fee pressures can flip to authorities assist schemes.
For occasion, the Household Support Package launched as a part of Budget 2022 will assist eligible households defray the prices of upper electrical energy payments. These households will obtain double the quantum of their quarterly U-Save vouchers in 2022.
On Thursday, the regulator additionally urged shoppers to do their half in conserving vitality the place doable.
Said EMA: “Our vitality market is being examined by unprecedented shocks and volatility within the world vitality markets.
“Nevertheless, EMA is committed to ensuring that Singapore’s power supply remains secure and reliable, and to supporting consumers through this period.”
Meanwhile, it should monitor the state of affairs and think about extending the measures additional or introducing extra assist if obligatory.
The post Scheme to support large electricity users extended till June amid Ukraine crisis first appeared on Umorr.
