Longer-term electricity contracts for professional consumers to counter price volatility: EMA

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SINGAPORE – To counter the increased volatility in wholesale electricity prices due to the current global energy crisis, electricity retailers here will offer longer-term fixed price contracts for professional consumers at competitive tariffs.

This is to help professional consumers who have encountered difficulties in obtaining fixed-price electricity contracts, the Energy Market Authority (EMA) said on Thursday 10 March.

Electricity retailers Sembcorp Power and Keppel Electric offer long-term fixed price packages to consumers with an average monthly consumption of 4 MWh to 50 MWh.

This is around 10 to 131 times the average monthly electricity consumption of a four-room Housing Office flat. Large electricity users in Singapore include shopping malls and manufacturing facilities.

These new tariff plans come with a longer contract term, ranging from six months to three years, with the electricity tariff for two-year and three-year contracts being priced at 25 cents per kWh.

This is lower than the electricity rate under the Temporary Electricity Contracting Support (Trecs) program of 39.9 cents per kWh for March.

To protect companies from the recent volatility in wholesale electricity prices, the EMA launched the program in January. Under it, commercial users can pay for electricity at a capped rate.

The procurement window for these contracts is now open.

“We encourage eligible consumers without a retail plan to consider these contracts for greater price certainty,” the EMA said in its statement.

Contract details for Trecs and other retail contract options for April will be available on the EMA website next week.

Consumers having difficulty obtaining an electricity contract can contact the EMA at ema_enquiry@ema.gov.sg for assistance.

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