MTI and EMA to Proceed with Updating the Energy Market Regulatory Regime with a View to Decarbonising the Power Sector

Proposed Legislative Amendment

MTI and EMA Feedback Response

Establish a regulatory regime for centralised gas procurement

• Applies to gas users from the power sector (e.g. generation companies)
• Legacy gas contracts not affected
• EMA assures that the gas procurement framework will improve the security and resilience of Singapore’s natural gas supply to the power sector, while keeping prices competitive
• Presently, no details on the Central Gas Entity’s pricing, procurement approach and performance benchmarks
• Will not apply to non-power sector consumers

Allow EMA to recover costs for energy security, market development, and decarbonisation related services

• EMA will seek to consult and provide reasonable notice to relevant parties before introducing new services from which costs will be recovered
• EMA will seek to recover the costs primarily from persons who benefit from these services
• Presently no details on the types of costs, quantum of costs and the parties EMA intends to recover these costs from

Facilitate shared access to critical energy infrastructure (“CEI“)

• CEI refers to installations that provide electricity and gas supplies (e.g. infrastructure supporting power generation units, waterfront jetties capable of unloading fuel oil, transmission cables and gas pipelines)
• Directives for access will be exercised only if EMA considers access necessary and in the public interest
• CEI owners will be reasonably compensated
• CEI owners may appeal to the Minister for Trade and Industry (“Minister“) for a review of EMA’s directive

Approval obligation for repurposing of electricity and gas assets

• Electricity and gas assets refer to installations that provide electricity and gas supplies (e.g. power generation units, transmission cables and gas pipelines)
• When assessing repurpose requests, EMA aims to strike a balance between owners’ commercial needs and ensuring energy security and system reliability will not be compromised
• Electricity and gas asset owners can appeal to the Minister for a review of EMA’s decision

Empower EMA to implement power rationing during emergencies

• Before power rationing is implemented, EMA will notify affected parties
• During power rationing, critical needs and essential public services will be prioritised
• EMA will not provide compensation to affected parties as power rationing is a necessary measure to stabilise the system during an emergency