Tan See Leng on weathering 'unprecedented' storm in global energy market
The Government will secure Singapore's energy supply, help vulnerable consumers weather the "unprecedented" storm in the global energy market and continue to make its energy sector even better. Second Minister for Trade and Industry Tan See Leng gave this assurance in reply to questions from MPs in Parliament on Monday (Nov 1). He said while most consumers will not see an immediate increase in electricity prices, this may happen next year due to higher energy prices globally. Dr Tan said the Energy Market Authority (EMA) has been working closely with industry stakeholders on "pre-emptive" measures to further secure fuel and electricity supply, and ensure energy resilience and reliability. EMA will review if these measures are still needed by Mar 31 next year. Turning to the exit of retailers from the Open Electricity Market, he stressed the need for a fair and robust system to ensure a smooth transition for affected customers. As of end-October 2021, about 140,000 households and 11,000 business accounts will either be transferred to another retailer or back to SP Group. EMA is open to allowing retailers facing challenges to suspend their operations by transferring their customers to SP Group while they strengthen their business. Best Electric, Ohm Energy and UGS Energy are already on board. EMA is working closely with the remaining nine retailers which are still operating. But for the transferred customers to pay less, the other customers with SP Group will have to pay more than the regulated tariffs to cross-subsidise them.
The Government will secure Singapore's energy supply, help vulnerable consumers weather the "unprecedented" storm in the global energy market and continue to make its energy sector even better. Second Minister for Trade and Industry Tan See Leng gave this assurance in reply to questions from MPs in Parliament on Monday (Nov 1). He said while most consumers will not see an immediate increase in electricity prices, this may happen next year due to higher energy prices globally. Dr Tan said the Energy Market Authority (EMA) has been working closely with industry stakeholders on "pre-emptive" measures to further secure fuel and electricity supply, and ensure energy resilience and reliability. EMA will review if these measures are still needed by Mar 31 next year. Turning to the exit of retailers from the Open Electricity Market, he stressed the need for a fair and robust system to ensure a smooth transition for affected customers. As of end-October 2021, about 140,000 households and 11,000 business accounts will either be transferred to another retailer or back to SP Group. EMA is open to allowing retailers facing challenges to suspend their operations by transferring their customers to SP Group while they strengthen their business. Best Electric, Ohm Energy and UGS Energy are already on board. EMA is working closely with the remaining nine retailers which are still operating. But for the transferred customers to pay less, the other customers with SP Group will have to pay more than the regulated tariffs to cross-subsidise them.
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