Singapore to End Temporary Electricity Scheme
Singapore’s Energy Market Authority (EMA) has announced that it will end the Temporary Electricity Contracting Support Scheme (TRECS), beginning May 1. In December 2021, the EMA implemented TRECS to mitigate the impact of volatile energy prices on large consumers. Under TRECS, the EMA worked with electricity retailers and generation companies to offer monthly fixed-price plans as well as plans with a significant fixed-price component for large electricity consumers. Following more stable global energy prices and local electricity markets, the EMA has decided to end the TRECS and encourages consumers under TRECS to enter retail contracts to enhance price certainty.
Further enhancements to be introduced
The EMA intends to introduce enhancements to strengthen the foundations of Singapore’s energy market. Proposed enhancements include steps to institutionalize crisis management measures, such as the Standby LNG Facility (SLF) that can provide gas in the event of energy supply shortages, as well as exploring ways to more centrally aggregate gas procurement to obtain more secure, long-term contracts. The EMA seeks to roll out these enhancements in the coming months.