SINGAPORE – A scheme that permits business power customers to buy electrical energy at mounted costs might be prolonged for 3 extra months until Might, stated Second Minister for Commerce and Business Tan See Leng on Monday (Feb 14).

“We’re extending (the scheme) for March, April and Might. We encourage shoppers with no retail plan to think about these contracts for larger certainty,” he instructed the Home, in response to questions raised by 5 MPs on the influence of the worldwide power disaster on small and medium enterprises (SMEs) in Singapore.

The scheme, referred to as the Momentary Electrical energy Contracting Help Scheme (Trecs), was first launched by the Power Market Authority (EMA) in January to cushion SMEs from the current volatility in wholesale electrical energy costs.

Underneath the scheme, business customers will pay for electrical energy at a fee capped at 39.7 cents per kilowatt hour (kWh).

The precise fee they pay will depend upon their negotiations with the retailers concerned within the scheme, which embody Geneco, Sembcorp Energy and Senoko Power Provide.

Customers eligible for the scheme are business shoppers with a mean month-to-month consumption of a minimum of 4,000kWh or 4 MWh – about 10 instances the common month-to-month consumption of a four-room Housing Board flat.

Such business shoppers can solely purchase electrical energy from the wholesale market or from retailers, and can’t pay for electrical energy on the regulated tariff provided by SP Group.

In October final yr – the month the power disaster was felt worldwide, together with in Singapore – the common wholesale market fee shot as much as nearly 50 cents per kWh. The speed was about 16 cents per kWh in September.

Noting that the TRECS plans have been absolutely subscribed for January and February, Dr Tan stated that the EMA – an company below his ministry – has labored with technology firms and electrical energy retailers to supply round 645 megawatts of Trecs and different plans “with vital mounted value elements”.

Not less than 200 megawatts of the contracts are nonetheless accessible for February, he added.

Dr Tan stated round 11,000 enterprise client accounts – accounting for about 1 per cent of shoppers – have to purchase instantly from the wholesale market, and are thus extra uncovered to unstable electrical energy costs, stated Dr Tan.

That is the place the TRECS plan will come into play to help these 11,000 shoppers, he added.