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Singapore’s EMA to implement enhanced regulatory framework for electricity retailers

The Energy Market Authority (EMA) in Singapore announced it will reinforce its regulatory framework for electricity retailers to bolster the competitive market and prepare for the energy transition. This includes new measures for financial stability, consumer protection, and resilience against market volatility.

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SINGAPORE: The Energy Market Authority (EMA) announced on Monday (31 July) that it will be implementing an enhanced regulatory framework for electricity retailers, designed to reinforce the competitive market structure and prepare Singapore for the energy transition.

The decision comes after a period of high volatility in the electricity market, partly triggered by the global energy crunch in the last quarter of 2021.

During the global energy crisis, there was significant price volatility in the Singapore Wholesale Electricity Market (SWEM), spilling over and affecting the electricity retail market. In 4Q2021, six electricity retailers exited the market as they were not sufficiently prepared for the market volatilities, and in some cases, consumer contracts had to be prematurely terminated.

These recent market conditions highlighted some retailers’ vulnerabilities who lacked the resilience to navigate market volatility.

In response to this, EMA has proposed a series of measures intended to fortify the current market structure, increase consumer protection, and enhance the resilience of electricity retailers against future market volatility.

These new regulations were finalized after a public consultation exercise from February to March 2023 and received general support from the electricity retailers.

The enhanced measures include requiring retailers to maintain a Tangible Net Worth of at least SGD$1 million at the time of license application or renewal, and to obtain EMA’s approval to appoint key appointment holders.

Moreover, retailers must hedge at least 80% of their retail contract position and provide a performance bond for any unhedged position, thus further safeguarding against market volatility. Steps will also be taken to protect consumers against premature termination of retail contracts. These enhancements are set to be progressively implemented from August 2023.

EMA also addressed the future electricity demand of Singapore and stated that the country has sufficient generation capacity. New generation capacity is expected to enter the market over the next few years due to economic growth and new investments in energy-intensive industries.

Keppel Energy and Sembcorp Cogen Pte Ltd are set to build Combined Cycle Gas Turbines, and Meranti Power is constructing two 340MW Open Cycle Gas Turbines, which are expected to be commissioned by 2025.

To further ensure sufficient generation capacity, EMA plans to introduce a Centralised Process for coordinating the development of new generation capacity by the private sector.

A Request for Proposals for new generation capacity required in five years’ time was launched in July 2023. If private sector interest proves insufficient, EMA has stated that they will build the necessary capacity.

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Crime

Singaporean fugitive deported from Thailand, to be charged with drug trafficking

A Singaporean fugitive arrested in Thailand, was deported to Singapore on 19 September 2024 and faces drug trafficking charges. Authorities expect him to face the death penalty under Singapore’s tough drug laws for running a smuggling operation between Thailand, Australia, and Singapore.

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A 31-year-old Singaporean man, wanted for drug trafficking offences, was arrested in Thailand and deported to Singapore on 19 September 2024.

The fugitive, identified as Benny Kee Soon Chuan, was apprehended by Thai police at his residence near Bangkok’s Suvarnabhumi Airport and will face charges in court on 20 September.

Kee, described as a high-level trafficker, ran a smuggling operation that trafficked crystal methamphetamine, ketamine, and Ecstasy to Australia and Singapore using Thailand as a transit hub, according to Pol Lt Gen Panurat Lakboon, secretary-general of Thailand’s Office of the Narcotics Control Board (ONCB).

Cross-Border Investigation and Arrest

The Central Narcotics Bureau (CNB) of Singapore had issued an arrest warrant for Kee following investigations into two drug trafficking cases in December 2020 and November 2022.

He had been on the run since 11 April 2016, prompting CNB to collaborate with its international counterparts, including the ONCB. Thai authorities were tipped off by CNB on 12 August 2024, and after weeks of investigation, Kee was apprehended on 17 September.

Thai immigration officials revealed that Kee had entered Thailand earlier in 2024 using a Vanuatu passport.

Following his arrest, Kee’s Thai visa was cancelled, and assets worth 15 million baht (S$585,000), including luxury watches, gold pieces, and a luxury car, were seized during a raid on his residence in Samut Prakan.

Lt Gen Panurat confirmed that the fugitive had been living an affluent lifestyle in Thailand despite lacking legitimate employment.

Links to Broader Drug Network

Kee is believed to be linked to other Singaporean traffickers involved in the smuggling of drugs from Thailand.

In March 2021, Thailand’s Anti-Trafficking in Persons Task Force (AITF) intercepted packages containing Ecstasy and ketamine destined for Singapore, as well as crystal methamphetamine bound for Australia.

Two other Singaporean men, aged 21 and 29 at the time of their arrests, were later sentenced to imprisonment and caning in Singapore for their involvement in these operations, which were connected to Kee’s trafficking network.

Death Penalty Under Singaporean Law

Kee’s deportation to Singapore brings him under the jurisdiction of Singapore’s severe drug laws, which prescribe the death penalty for those convicted of trafficking substantial amounts of controlled substances.

Singaporean authorities have indicated that he could face the death penalty under the country’s strict drug trafficking laws. Pol Lt Gen Panurat indicated that Singaporean authorities are expected to seek the maximum penalty for Kee’s alleged offences.

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Arts & Culture

Epigram Books to close SAM bookshop amid low sales and footfall

Epigram Books will shut down its bookshop at the Singapore Art Museum on 26 January 2025, citing low sales and foot traffic. The independent bookstore, known for supporting local authors, will continue to operate its online store, but its future in brick-and-mortar retail is uncertain.

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Epigram Books, a major supporter of Singaporean literature, will close its Epigram Coffee Bookshop at the Singapore Art Museum (SAM) on 26 January 2025.

The decision comes after years of struggling with low sales and foot traffic at the Tanjong Pagar Distripark location, marking the end of the bookstore’s three-year lease.

The announcement on 19 September follows Times Bookstores’ closure of its final outlet in Holland Road, highlighting the growing challenges faced by brick-and-mortar bookstores in Singapore.

Edmund Wee, publisher at Epigram Books, expressed disappointment, stating: “We tried everything to make this work. Over the past three years, we’ve often asked ourselves, how many people even knew our bookstore existed here, let alone visited?”

Despite efforts to boost traffic, including operating shuttles to increase accessibility, the bookstore struggled to attract visitors consistently.

Epigram Coffee Bookshop, previously located at the Urban Redevelopment Authority Centre on Maxwell Road and later in a pop-up at Beach Road, relocated to SAM in May 2022 in partnership with Balestier Market Collective.

The 20-seater store featured towering shelves showcasing local and Southeast Asian titles, including books from other independent publishers like Ethos Books and Math Paper Press.

However, the location’s industrial setting, which only saw spikes in visitors during major exhibitions like Olafur Eliasson’s, limited consistent footfall.

The closure coincides with the end of Eliasson’s exhibit on 22 September 2024. Although the exhibition provided a temporary boost to the bookshop’s sales, Epigram noted that the increased traffic was short-lived.

Epigram’s future in physical retail remains uncertain. Mr Wee indicated that high rental costs make reopening a physical store unlikely: “Unless rent prices relent, it’s unlikely we’ll move into another space.”

Epigram Books has been a significant presence in Singapore’s independent book scene, promoting local authors and holding literary events.

The bookshop was also a community hub for the literary arts, hosting numerous book launches and events supporting local writers. “These spaces are special to our literary arts community. They’re where book lovers gather, where literary events and book launches happen in support of our writers,” said Mr Wee.

Despite the closure of the SAM store, Epigram will continue to operate its online store. The publisher emphasized the need for continued support from readers: “We’ve come this far with everyone’s support, and we look forward to continued support from our readers as we transition to focus on online sales.”

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