Skyrocketing fuel prices have prompted three energy providers to leave Singapore in less than a week.
Power provider Ohm Energy announced on its website on Oct. 15 that it left Singapore’s energy market, explaining that recent disturbances in the energy market have made it unsustainable for the company to price their rates below regulated tariff.
The company said that it will hand over its customers to state-owned grid operator SP Group.
Ohm followed the exit of other power providers iSwitch Energy and SilverCloud Energy last week.
Singapore mainly runs its electricity on natural gas which the city-state largely imports — Ohm and iSwitch were some of the companies relying on imports and were hit by skyrocketing fuel prices worldwide.
The Energy Market Authority (EMA) said in a statement on Oct. 16 that it was working closely with power providers and offered help in hedging against volatility in the electricity market.
“Electricity retailers who have under-hedged their positions may be exposed to the price volatility in the wholesale electricity market,” said EMA.
“This is a consequence of their business decisions and can be expected in open and liberalized electricity markets, where participants may enter and exit the market, and market consolidation may occur,” EMA added.
© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.