Singapore’s Ministry of Trade and Industry (MTI) and the Energy Market Authority (EMA) have launched a public consultation to gather feedback on proposed amendments to several key energy laws, including the Electricity Act and the Gas Act. The consultation period, which began on May 8, 2024, will conclude on June 5, 2024.

One of the main proposals involves establishing a regulatory framework for centralised gas procurement. This initiative aims to enable Singapore to benefit from demand aggregation, diversify its energy sources, and ensure an adequate supply of gas to meet its power requirements. To implement this, power generation companies would be required to procure gas exclusively from a central gas entity (GCE), although existing supply contracts would remain exempt from this requirement.

Furthermore, the proposed amendments would empower the EMA to set procurement terms for generation companies, including minimum gas contracting obligations, under the Electricity Act. The Gas Act would also be modified to allow EMA to regulate the GCE, covering aspects such as the sources of gas and the tenures of upstream gas contracts.

In addition to these changes, the MTI and EMA are looking to amend the Electricity Act and Gas Act to facilitate the recovery of costs associated with initiatives aimed at enhancing energy security and supporting decarbonisation efforts in the power sector. Any costs recovered would require ministerial approval and would be charged to licensees or consumers benefiting from these initiatives.

Given Singapore’s limited land area, the government recognizes the need for shared access to critical infrastructure. Thus, they plan to amend both Acts to allow the EMA to direct owners of such infrastructure to enable access for licensees, with reasonable compensation provided to the owners. If agreements cannot be reached, either party may request the minister to establish an appeal panel to determine the reasonable terms for access.

Moreover, the proposed amendments would require owners of critical energy infrastructure to seek EMA’s approval before repurposing such facilities for other uses. This measure aims to assist in system planning and safeguard energy security.

Finally, recognizing the importance of preparedness for emergencies, the government intends to empower the EMA to direct power rationing during critical situations. These powers would be exercised only as a last resort and for the minimum duration necessary, similar to existing systems in countries like France and Germany.

Members of the public are encouraged to submit their feedback via email or mail by June 5, with the government committing to anonymising and aggregating responses to maintain confidentiality.