To make the energy sector more responsive and following consumer demand, the Singapore Government launches a consultation process where electricity consumers of Singapore will be able to deal in the electricity futures market.
While talking about the initiative, Mr Iswaran, a minister in the Prime Minister’s Office and Second Minister for Trade and Industry, said that Singapore’s futures trade in electricity products would complement the country’s wholesale market fetch several benefits. He also referred to the future markets of electricity as a commodity that has already been introduced in New Zealand, Australia, and the UK and is functioning with great success.
S. Iswaran elaborated on the Singapore Government’s initiative. He said that independent retailers would be able to actively participate in the market by purchasing futures contracts and, in turn, offering competitive packages to consumers. Whereas the consumers will also lock in longer-term prices to cover their risks, he added.
In addition to the aforementioned initiative, the Singapore Government has introduced The Singapore Energy Award to acknowledge and celebrate the local energy sector’s extraordinary achievements.