Singapore says no disruption to electricity supply as power companies exit
- At least three electricity providers have announced plans to cease operations amid rising wholesale electricity market prices
- Singapore’s energy regulator said it will help retailers in hedging against future price volatility
Singapore’s wholesale electricity market prices, which are determined every half-hour depending on demand and supply conditions, have been hit by higher price volatility for sustained periods over the past two weeks, the Energy Market Authority (EMA) said.
Several factors were behind the volatility, the regulator said in a statement, including a spike in liquefied natural gas (LNG) prices globally, higher than usual electricity demand in the city state, curtailment of piped natural gas from Indonesia’s West Natuna and “low landing pressure of gas” supplied from South Sumatra.
“Electricity retailers who have under-hedged their positions may be exposed to the price volatility in the wholesale electricity market,” EMA said.
“Some may find it challenging to sustain their operations and may choose to exit the market. This is a consequence of their business decisions and can be expected in open and liberalised electricity markets, where participants may enter and exit the market, and market consolidation may occur.”
At least three electricity providers have announced plans to exit Singapore, while two others have stopped accepting new customers.
