USEP increased in the first three quarters of 2021 due to tighter demand-supply conditions. As COVID-19 measures were progressively lifted, electricity demand consequently increased, reaching levels comparable to the pre-COVID-19 periods.
The surge in USEP since Q4 2021 is attributable to at least three factors. First, global spot natural gas prices have been high and volatile with the ongoing global energy crunch, exacerbated by the Ukraine situation. Second, there were piped natural gas supply disruptions. Last, electricity demand continues to rise in tandem with higher economic activity as COVID-19 becomes endemic. Since 1H 2022, USEP has stabilised downwards with the introduction of pre-emptive measures to enhance Singapore’s energy security and resilience.