PART 1 AMENDMENT OF ENERGY MARKET
AUTHORITY OF SINGAPORE ACT 2001 |
2. In the Energy Market Authority of Singapore Act 2001 (called in this Part the EMA Act), in section 2, after the definition of “energy utilities”, insert —| “ “Future Energy Fund” means the fund of that name established under section 19;”. |
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3. In the EMA Act, in section 5(1), replace paragraph (b) with —| “(b) | 5 or more other members as the Minister may from time to time determine.”. |
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4. In the EMA Act, in section 6(1), after paragraph (f), insert —| “(fa) | to manage and administer the Future Energy Fund in accordance with this Act subject to the directions of the Minister;”. |
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| 5. In the EMA Act, in section 15, after “its moneys”, insert “(including the moneys in the Future Energy Fund)”. |
| New sections 19, 19A and 19B |
6.—(1) In the EMA Act, after section 18, insert —19.—(1) The Future Energy Fund is established consisting of —| (a) | all moneys from time to time appropriated from the Consolidated Fund or Development Fund and authorised to be paid into the Future Energy Fund by Supply law; | | (b) | all moneys authorised by or under any other written law to be paid into the Future Energy Fund; | | (c) | any gifts or donations made by any person for the purposes of the Future Energy Fund; and | | (d) | all investments out of moneys in the Future Energy Fund authorised to be made by this Act and the proceeds of any such investment, including the net income from such investments. |
| (2) Upon the commencement of section 6(1) of the Energy Transition Measures and Other Amendments Act 2024, the Government must pay into the Future Energy Fund such sum as the Minister charged with the responsibility for finance may determine out of moneys provided by Parliament for the Future Energy Fund. |
| (3) For the purposes of subsection (1)(d), the net income from investments is the amount ascertained by adding to, or deducting from, the income received from investments of moneys in the Future Energy Fund, any gain derived or loss sustained, realised or unrealised (as the case may be) from such investments. |
| (4) Upon the dissolution of the Future Energy Fund during any term of office of the Government (within the meaning of the Constitution), the balance then remaining in that Fund must be transferred to the Consolidated Fund and added to the reserves of the Government not accumulated by it during that term of office. |
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| Purposes of Future Energy Fund |
19A.—(1) The moneys in the Future Energy Fund may be withdrawn by the Authority only for the following purposes:| (a) | for the Authority to carry on, or to provide or enable the provision of financial support in connection with or as a consequence of the carrying on of, any low‑carbon energy project or energy supply security project; | | (b) | for the Authority to carry on any associated design, investigative and engineering studies, survey or research preparatory to the undertaking of any project in paragraph (a); | | (c) | to pay any of the following which is incurred or payable (as the case may be) for the purposes of any project in paragraph (a):| (i) | the costs incurred by the Collector of Land Revenue in the acquisition of any land under the Land Acquisition Act 1966; | | (ii) | the compensation payable for the acquisition of any land under the Land Acquisition Act 1966; |
| | (d) | to pay insurance premiums on —| (i) | capital equipment or other investments; and | | (ii) | land (including structures and installations), |
| constructed, improved, extended, replaced, acquired or leased using moneys from the Future Energy Fund; |
| | (e) | to pay all amounts relating to the sale, disposal or write‑off of any investments paid for with moneys from the Future Energy Fund; | | (f) | to invest in accordance with section 15; | | (g) | to pay any expenses properly attributable to the setting up of the Future Energy Fund and the administration, management and investment of moneys in that Fund. |
(2) Where a low‑carbon energy project or an energy supply security project was commenced before the appointed date, the moneys in the Future Energy Fund may be withdrawn by the Authority for a purpose mentioned in subsection (1) in relation to the project only if, before the appointed date —| (a) | any infrastructure or property constructed, improved, extended, replaced, acquired or leased under the project; or | | (b) | any transmission or distribution system improved or enhanced under the project, |
| is not in a position to be used to provide goods or services to any person. |
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| (3) No investment paid for with moneys from the Future Energy Fund may be written‑off by the Authority without the prior approval of the Minister. |
(4) The moneys in the Future Energy Fund must not be withdrawn —| (a) | for the purposes of land reclamation by or on behalf of the Government; | | (b) | to pay for any fuel used for the generation of any electricity; or | | (c) | to pay for any recurrent costs of any low‑carbon energy project or energy supply security project. |
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| (5) The moneys in the Future Energy Fund may be used, or used to provide or enable the provision of financial support, for a purpose mentioned in subsection (1), in an amount which, based on a reasonable estimation by the Authority, will not contravene subsection (4). |
(6) In this section —| “appointed date” means the date of commencement of section 6(1) of the Energy Transition Measures and Other Amendments Act 2024; |
“energy supply security project” means a project to ensure the security and reliability of any supply of energy utilities in Singapore, necessitated by any low‑carbon energy project, including —| (a) | the improvement or enhancement of any transmission or distribution system in Singapore; and | | (b) | the construction, improvement, extension, replacement, acquisition or leasing of any infrastructure or property (including the acquisition of any intellectual property), to provide power back‑up in the event of any interruption in the import, generation, transmission or distribution of any electricity under the low-carbon energy project, including —| (i) | energy storage systems; | | (ii) | fast‑response generators (including diesel generators and gas engines) for generating electricity; | | (iii) | systems activating localised generators to reduce consumers’ electricity demand from any transmission system; and | | (iv) | combined‑cycle gas turbines; |
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| “greenhouse gas” has the meaning given by section 2(1) of the Carbon Pricing Act 2018; |
“low‑carbon electricity” means any electricity that is generated (whether in Singapore or elsewhere) using —| (a) | energy from any renewable energy source; or | | (b) | any low‑carbon fuel by which the emission of any greenhouse gas may be reduced or minimised when the fuel is used for the generation of electricity; |
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“low‑carbon energy project” means a project (whether or not in Singapore) consisting of the construction, improvement, extension, replacement, acquisition or leasing of any infrastructure or property (including the acquisition of any intellectual property), to enable the carrying on of any of the following:| (a) | the generation of low‑carbon electricity (including the import, production, transportation and storage of any fuel used to generate such electricity) for supply to any person or premises in Singapore, or to persons or premises both in Singapore and outside Singapore, and the disposal, processing, storage or transportation of any waste produced in connection with the generation of low‑carbon electricity; | | (b) | the use of any energy storage system for the purposes of the supply of any electricity to any person or premises in Singapore, or to persons or premises both in Singapore and outside Singapore; | | (c) | the disposal, processing, storage or transportation of emissions produced in connection with electricity that is not low‑carbon electricity, generated for supply to any person or premises in Singapore, or to persons or premises both in Singapore and outside Singapore; | | (d) | the import into Singapore of any electricity generated outside Singapore, and the transmission and distribution of the electricity for supply to any person or premises in Singapore, or to persons or premises both in Singapore and outside Singapore; |
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| “recurrent costs”, in relation to a low‑carbon energy project or an energy supply security project, means any costs of a recurring nature incurred or that would be incurred in the ongoing operations of the subject matter of the project in the provision of goods or services. |
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(7) The Minister may by order in the Gazette prescribe —| (a) | what is or is not a low‑carbon fuel for the purposes of paragraph (b) of the definition of “low‑carbon electricity” in subsection (6), generally or for one or more periods of time; and | | (b) | what is or is not a cost of a recurring nature for the purposes of the definition of “recurrent costs” in subsection (6), generally or for one or more low‑carbon energy projects or energy supply security projects.”. |
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(2) In the EMA Act, after section 19A (as inserted by subsection (1)), insert —| “Recovery of costs for energy initiatives |
19B.—(1) This section applies where the Authority undertakes any energy initiative for any of the following purposes, whether by itself or through a person appointed by the Authority (called in this section appointed person):| (a) | to ensure the security or reliability of the supply of any energy utilities; | | (b) | to improve or enhance the operation of any market or section of a market for any energy utilities; | | (c) | to lower carbon emissions in connection with the supply of any energy utilities. |
| (2) Regulations made under section 31 may provide for the imposition of any rate to recover the costs of the Authority or appointed person in undertaking any energy initiative, whether or not payable at the time the rate is imposed. |
| (3) Where a rate is to be imposed for any costs not yet payable, and which amounts are not yet determined, then, for the purpose of imposing the rate, the Authority may make a reasonable estimation of the amounts of the costs that will be incurred. |
(4) Without affecting section 31, the regulations may make provision in relation to the payment and recovery of any rate, including —| (a) | the persons who must pay the rate, being any one or more of the following:| (i) | any electricity licensee under the Electricity Act 2001, or any person exempted from the requirement of an electricity licence under that Act; | | (ii) | any gas licensee under the Gas Act 2001, or any person exempted from the requirement of a gas licence under that Act; | | (iii) | any licensee under the District Cooling Act 2001, or any person exempted from the requirement of a licence under that Act; | | (iv) | any consumer of any energy utilities, |
| whether or not the person derives any direct or immediate benefit from the energy initiative for which the rate is imposed; |
| | (b) | the amount of the rate payable by each person (including by way of a formula or other method which may incorporate by reference any other formula or market index of another body or organisation, as may be amended from time to time); | | (c) | the manner in which the amount of any rate payable by any person is to be paid by the person (including to any person authorised by the Authority to collect the amount); and | | (d) | if the amount of any rate payable by a person is not paid by the person, the manner in which the amount may be recovered from the person, |
| and the regulations may, for each rate, make different provisions for different persons or classes of persons, or for different circumstances. |
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| (5) To avoid doubt, the regulations may provide that the rate imposed for any energy initiative in relation to any energy utilities is payable by all or any licensee, all or any consumer, or any combination thereof, in relation to that or any other energy utilities. |
| (6) To avoid doubt, the regulations may be amended from time to time to alter the amount of the rate imposed on any person in relation to any energy initiative, for the purpose of ensuring that the amounts paid or recovered under the rate are reasonably commensurate with the costs of the Authority or appointed person (as the case may be) in undertaking the energy initiative. |
| (7) Subject to subsection (8), the amounts paid or recovered under a rate imposed for any energy initiative are to be applied to meet the costs of the Authority or appointed person (as the case may be) in undertaking the energy initiative. |
| (8) Where (despite any alteration under subsection (6)) the amounts paid or recovered under a rate imposed for any energy initiative exceed the costs of the Authority or appointed person (as the case may be) in undertaking the energy initiative, the Authority may retain the excess and apply the excess in payment of the costs of any other energy initiative undertaken by the Authority or any appointed person.”. |
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