Singapore mulling an electricity futures market

Learn how consumers will benefit.

"Futures markets are already well-established for other commodities such as oil and gas. They have also been introduced for electricity in New Zealand, Australia, and the UK. By enabling trade in forward electricity products, a futures market will complement Singapore’s wholesale market and yield several benefits," said Mr S Iswaran, Minister in Prime Minister’s Office & Second Minister for Home Affairs & Trade & Industry in a speech delivered at the recent Singapore Energy Summit.

"Firstly, independent retailers will be able to participate in the market by purchasing futures contracts and in turn offering competitive packages to consumers. This will increase retail competition and benefit end consumers. Consumers will also be able to hedge their risks by locking in longer-term prices, while generation companies stand to gain by using the futures contracts to hedge against their fuel price and operational risks during plant outages."

"The Government is studying the implementation options and I am pleased to announce that we will commence a public consultation on an electricity futures market. We invite the industry’s and other stakeholders’ thoughts on the proposed futures market and welcome your active contribution to this process."

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