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Electricity retailers offer longer-term fixed price contracts for businesses amid increased market volatility

SINGAPORE: Longer-term fixed price electricity contracts are now available for business consumers amid increased price volatility, the Energy Market Authority (EMA) said on Thursday (Mar 10).

“Amid the increased price volatility in the wholesale electricity market due to the current global energy crunch, some business consumers have faced difficulties in securing fixed price electricity contracts,” EMA said in a media release.

“The Energy Market Authority has therefore worked with electricity retailers to offer more long-term fixed price contracts for business consumers at competitive rates.”

Sembcorp Power and Keppel Electric have responded by offering long-term fixed price plans to consumers with an average monthly consumption from 4MWh to 50MWh.

“These price plans come with a longer contract duration ranging from six months to three years, with the electricity rate for the two- and three-year contracts priced at 25 cents/kWh,” EMA said.

“This is lower than the electricity rate for the Temporary Electricity Contracting Support Scheme (TRECS) of 39.9 cents/kWh for March 2022.”

The contracting window for the new contracts is now open, and EMA encouraged eligible consumers without retail plans to “consider these contracts for greater price certainty”.

The new contracts were mentioned in Parliament last week by Second Minister for Trade and Industry Tan See Leng during the ministry’s Committee of Supply debate.

During the debate, Dr Tan addressed the crisis in Ukraine and said that the Government would "spare no effort" to ensure that Singapore's energy supply remains secure and reliable.

“I understand the cost pressures faced by households and businesses. We will constantly continue to monitor market developments and we will not hesitate to introduce further measures, if necessary, to support vulnerable consumers,” he said.

EMA also announced on Thursday that contracting details for TRECS and other retail contract options for April 2022 would be released next week.

Introduced in December last year amid "unprecedented volatility" in the electricity market, TRECS allows generation companies to draw on EMA’s standby fuel facility to generate electricity – thus reducing the risk that disruptions might present to them.

Large businesses are able to get one-month fixed price electricity plans under the scheme, which was extended last month from March to May 2022.

Source: CNA/kg(gr)

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