Steps Taken to Stabilise Prices and Safeguard Energy Security

24 Jan 2022

We refer to Ms Chiang Loo Fern’s letter on her workshop’s high electricity bill (Price Difference in Electricity Bill Was Shocking, Jan 17).

Ninety-five percent of Singapore’s electricity is generated from natural gas. Since September, the world has been in an energy crunch arising from unexpected strong demand, a number of supply disruptions, and low inventory.

At its peak, the price of liquefied natural gas (LNG) was more than triple the levels at the start of 2021. There was also a series of disruptions to our piped natural gas (PNG) supply over the past few months. These have caused electricity prices to increase significantly and limited retailers’ ability to offer price plans to some business consumers.

The Energy Market Authority (EMA) has taken extraordinary measures to safeguard Singapore’s energy security and stabilise electricity prices. These include setting up the Standby LNG Facility (SLF) which power generation companies, or gencos, can tap on to replace disrupted supplies.

For business consumers who are facing difficulties obtaining contracts from electricity retailers, we introduced the Temporary Electricity Contracting Support Scheme in which gencos and electricity retailers can tap on the SLF to offer fixed price plans.

Consumers may wish to engage their retailers on their February 2022 plans. More information on participating retailers can be found on EMA’s website.

EMA is aware that demand for such retail contracts has increased and some business consumers have not been able to secure contracts. We are working closely with the gencos and retailers to increase the capacity under this scheme.

Jesse Chin
Director, Market Development and Surveillance Department
Energy Market Authority
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Price Difference in Electricity Bill Was Shocking
By: Chiang Loo Fern

I am managing a small and medium-sized enterprise that operates a workshop in Singapore.

We were one of the unfortunate customers of iSwitch, which went out of business last year.

Our account was transferred to SP Group from Nov 12 last year.

We did not realise the implications of the transfer.

Our December electricity bill from SP amounted to $5,937.15. That was a huge shock to us as our average monthly bill had been $1,400.

I was told by SP that we should get another electricity vendor. I have contacted six vendors.

I was told by one major vendor that its capacity is finite. A different vendor did not want to give me a quote, and another said it does not serve business accounts.

We can absorb a 10 per cent increase in cost but not a 320 per cent increase.