SINGAPORE, Oct 19 (Reuters) – Singapore electricity retailer Union Power said on Monday it will reorganise its business after sustained hikes in wholesale energy prices in the city-state.
This will involve ceasing some retail electricity accounts while continuing business as usual with most residential customers, who are the majority of its clients, the company said on its website.
It will not exit the electricity retail market, it added.
Three energy providers have announced their exit from the Singapore electricity market amid rocketing wholesale energy prices that retailers are unable to pass on to customers.
“The sustained spikes of the Uniform Singapore Energy Price are due to a combination of factors and cannot be fully mitigated through hedging or participation in the electricity futures market,” the company said.
Union Power, a subsidiary of Singapore’s bottled-gas supplier Union Energy Corp, added that it has informed a total of 850 customers who will be affected by the business reorganisation, following which its portfolio will have about 20,000 accounts.
“Union Power is ceasing mostly peak usage accounts such as commercial customers, some of whom are in arrears,” the company said.
“Where applicable and not in arrears, these customers will receive payment from Union Power. Most non-peak accounts such as residential households, will not be affected.”
Reporting by Jessica Jaganathan; Editing by Richard Chang
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