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Temporary electricity contracts scheme in Singapore extended until May

Out-Law News | 28 Feb 2022 | 6:43 am | 1 min. read

Singapore’s Energy Market Authority (EMA) has announced the extension of its temporary electricity contracting support scheme (TRECS) until May 2022, in the context of continued rising global gas prices. 

The TRECS was launched in December 2021 by the EMA. Under the scheme, the EMA works with power generation companies and electricity retailers to provide one-month fixed price electricity plans to consumers.

Under this scheme, participating power generation companies are able to draw on the EMA's standby liquified natural gas (LNG) facility which is supplemented with gas purchased from the spot LNG market. It means the plans need to be re-priced each month to reflect current global gas prices. Consumers with an average monthly consumption of at least 4-megawatt hour (MWh) can subscribe to the fixed price plans.

According to a statement by the EMA, the scheme was fully subscribed for January while 645MW of TRECS and other monthly retail plans were offered for February 2022. At least 200MW of the contracts are still available. Consumers with average monthly consumption of between 4 and 8 MWh can continue to be offered fixed price contracts at preferred rates. The contracting window for March opened on 15 February.

William Stroll, energy expert at Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, said: “With the increasing global uncertainties presented by current events in Europe it is likely that gas will continue to be in short supply with a consequent impact on prices.  It would not be surprising if this scheme is further extended in due course”.

According to a local report, second minister for trade and industry Tan See Leng said that higher electricity prices were unavoidable, and that the current global energy crunch had only worsened the situation.