13 May 2016:

With strong interest received from the industry, EMA proceeded with the development of the electricity futures market and the implementation of the Forward Sales Contract (FSC) scheme. The electricity futures market was subsequently launched on the Singapore Exchange (SGX) on 1 April 2015.

As part of the EMA’s ongoing engagement efforts, we had received requests from both electricity consumers and the industry to review the FSC scheme with the view of containing the overall costs for electricity consumers and reducing volatility for FSC participants. After careful consideration of the feedback received, EMA has refined the FSC scheme to address the concerns from various stakeholders. This addendum provides details on the revisions to the FSC scheme.

23 May 2013:

In the public consultation paper released in Oct 2012, the EMA requested feedback from stakeholders on the Forward Sales Contract (FSC) scheme, which provides incentives for generators through long term contracts of up to 3 years in return for them participating as market makers in the electricity futures market. 

The EMA has further refined the FSC scheme after careful consideration of the feedback received. This paper provides details on how the FSC scheme works and the process for the EMA to ascertain whether there is sufficient interest to proceed with the development of the electricity futures market. There are two key stages in the process.

Pre-qualification (Memorandum of Understanding (MOU) and proposal submission) stage: An interested generator will submit to the EMA a signed MOU with an exchange of itschoice, together with a proposal specifying the pathway for the development of the electricity futures market that is agreed between the interested generator and that exchange for the EMA’s consideration. Upon the EMA’s review that the proposal submitted is in accordance with the objectives of the baseline parameters specified in this paper, the EMA will subsequently announce the exchange of industry’s choice. In the event that more than one exchange is selected during this stage, the exchange that is selected by the majority of the generators will be the exchange of industry’s choice. A generator who did not select the exchange of industry’s choice as its choice of exchange can still proceed to the bidding stage but will have to work with the exchange of the industry’s choice based on the proposal accepted by the EMA.

Bidding stage: Generators who submitted an MOU (regardless of the exchange they have chosen) are pre-qualified to proceed to this stage. In this stage, pre-qualified generators will submit a bid for the FSC volumes they would like to be allocated, in return for the MM volumes they are willing to commit in the electricity futures market. The EMA will subsequently inform the respective generators of the FSC volumes they have been allocated, after which they will be required to work with the exchange of industry’s choice to prepare for the launch of the electricity futures market, which should be no later than 6 months after EMA has informed the generators of the FSC volumes they have been allocated.

A generator interested in participating in the pre-qualification (MOU and proposal submission) stage will be required to submit the signed MOU with the exchange of its choice, together with a proposal specifying the agreed pathway for the development of an electricity futures market. Submissions should be sent to EMA_PPD@ema.gov.sg by 20 June 2013 (5pm). Alternatively, you may send the submission by post/fax to:

Policy Department
Energy Planning and Development Division, Energy Market Authority
991G Alexandra Road, #01-29
Singapore 119975
Fax: (65) 6835 8020

19 Nov 2012:

The consultation has closed for comments.