Discontinuation of the Temporary Electricity Contracting Support Scheme
20 Mar 2023
EMA will be discontinuing the Temporary Electricity Contracting Support Scheme (TRECS) from 1 May 2023.
2. Since September 2021, the Energy Market Authority (EMA) has put in place various emergency measures to manage the impact of the global energy crisis. These include working with electricity retailers and generation companies (gencos) to help large consumers secure retail contracts through TRECS, which was introduced in December 2021. Under TRECS, EMA worked with gencos and electricity retailers to offer monthly fixed price plans or plans with a significant fixed price component for large consumers with an average monthly consumption of at least 4,000 kilowatt-hours (kWh).
3. Global energy prices have been less volatile in recent months, and the emergency measures have stabilised our electricity markets. More longer-term retail contracts are now available to large consumers. EMA will therefore discontinue TRECS from 1 May 2023.
4. Consumers who are on TRECS or Wholesale Electricity Prices (WEP) are strongly encouraged to consider entering into retail contracts for greater price certainty. This is to safeguard yourselves and/or your organisations against potential high and volatile WEP that could occur.
Strengthening the Foundations of the Energy Market
5. EMA will build on the lessons learnt from the recent energy crisis and introduce enhancements to strengthen the foundations of our energy market. These include previously announced steps to institutionalise crisis management measures such as the Standby LNG Facility (SLF) to safeguard energy security, directing gencos to generate electricity using gas from the SLF if there are potential shortages in energy supply, and requiring gencos to maintain sufficient fuel for power generation. EMA will also be introducing other enhancements such as tightening the regulatory requirements on electricity retailers to strengthen consumer protection and exploring ways to centrally aggregate gas procurement to obtain more secure and long-term contracts. These enhancements will be progressively rolled out in the coming months.
6. EMA will continue to monitor the situation closely and take the necessary steps to ensure our energy markets continue to function properly.
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