Measures in place to safeguard energy security, mitigate rising electricity prices: Tan See Leng
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Dr Tan said that notwithstanding the measures in place, global electricity prices are likely to remain elevated due to the Ukraine crisis.
PHOTO: ST FILE
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SINGAPORE - Measures have been put in place to safeguard Singapore's energy security and help consumers cope with rising electricity costs, Second Minister for Trade and Industry Tan See Leng said in Parliament on Friday (March 4).
In his speech during the debate on the Ministry of Trade and Industry's budget, Dr Tan said that notwithstanding the measures in place, global electricity prices are likely to remain elevated owing to the Ukraine crisis.
He also reiterated how Singapore had been enjoying artificially low electricity prices for several years due to commercial decisions taken by generation companies here.
An electricity price correction is therefore inevitable.
The global energy situation has precipitated and exacerbated this correction, Dr Tan said.
"I understand the cost pressures faced by households and businesses. We will continue to monitor market developments and introduce further measures, if necessary, to support vulnerable consumers," the minister said.
The measures implemented to safeguard energy security and mitigate rising costs include the Temporary Electricity Contracting Support scheme to help large consumers who are not able to obtain retail contracts, introduced last December.
Under the scheme, participating gencos are able to draw on the Energy Market Authority's Standby LNG Facility to offer monthly retail contracts to large electricity consumers.
That scheme has been extended to May this year, and will be extended further if necessary, Dr Tan added.
Concerns over Singapore's energy security and increasing electricity prices come as oil and gas prices have been rising amid Russia's invasion of Ukraine.
Global crude oil prices have surged beyond US$110 (S$150) a barrel, while the cost of natural gas has skyrocketed in Europe due to fears of a supply shock.
Given that Singapore imports its energy, with about 95 per cent of its electricity generated from natural gas, it cannot be fully insulated from developments in the global energy market, Dr Tan said in a previous Parliament sitting.
Several power retailers in Singapore closed shop last year amid volatility in wholesale electricity prices, including the largest independent and fourth largest retailer iSwitch.
About 9 per cent of all electricity consumer accounts were affected by these exits, while others experienced premature termination of their contracts by another two retailers.
