The Energy Market Authority (ECA) yesterday announced a new arrangement to help consumers, such as outlets and manufacturing plants, who use more electricity to reduce the impact of rising electricity tariffs.
Under the new Provisional Energy Contract Support Scheme, pre-determined tariffs can be paid.
Accordingly, the maximum charge per kilowatt ((kWh) will be 39.7 kas.
Charges will be confirmed during negotiations between consumers and electricity distributors. The Energy Market Authority said the project would include power distributors Genco, Chemcorp Power and Xeno Energy Supply.
This agreement, based on constant prices, is valid until January 2022.
However, this agreement may be extended if necessary.
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The commission said the scheme would be a good option for companies facing difficulties in securing electricity contracts, while wanting to reduce the impact of rising electricity tariffs.
Those who use at least 4,000 kilowatts of electricity per month on average are considered large users. 4,000 kilowatts of electricity is ten times higher than the average monthly utility used by a four-bedroom apartment. Large commercial buildings such as shopping malls are considered large users.
At present these consumers have to buy electricity from retailers or from the wholesale market, where prices change every half hour.
Families have a third option. Electricity can be purchased from the Singapore Power Group at a regulated rate. The charge for this is currently 25.80 kas per kilowatt.
Most electricity users will not be able to avail this service as they have the power to bargain with retailers.
Countries around the world, including Singapore, faced an energy crisis in October. The average price of electricity in the wholesale market rose to 50 kas per unit. In September the price was 16 kas.
Nearly one percent of consumers buy electricity directly from the wholesale market.
In the current global energy crisis, Singapore will not be able to completely escape rising energy prices, said Dr. Tan Chee Leng, Second Minister for Trade and Industry.
“But Singapore can continue to ensure that consumers get the electricity and projects they need. The new project is another step in this direction, ”he said.
“Vulnerable users will be supported to cope with the rising costs. We hope consumers will also be able to use electricity as sparingly as possible and help save electricity, ”said Dr. Don.