Statute Details
- Title: Electricity (Prescribed Generation Entities) Regulations 2025
- Act Code: EA2001-S566-2025
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Electricity Act 2001
- Enacting Authority: Energy Market Authority of Singapore (EMA), with Ministerial approval
- Commencement: 1 September 2025
- Key Provisions:
- Regulation 1: Citation and commencement
- Regulation 2: Definitions (including “10-year forward period”, “allocated quantity”, and “Gas Demand Forecast”)
- Regulation 3: Prescribes entities in the Schedule as “prescribed generation entities” (PGEs) for Part 5B of the Electricity Act 2001
- Regulation 4: Sets minimum gas contracting requirements and the allocation methodology (A × B × C) − D
- Schedule: Prescribed generation entities (list of PGEs)
- Current Version Status: Current version as at 27 Mar 2026 (per provided extract)
- Relevant Timeline Entry: SL 566/2025 dated 1 Sep 2025
What Is This Legislation About?
The Electricity (Prescribed Generation Entities) Regulations 2025 (“PGE Regulations”) are subsidiary legislation made under the Electricity Act 2001. Their core function is to identify specific electricity generation companies (the “prescribed generation entities” or “PGEs”) and impose a structured requirement on those entities to contract for minimum quantities of gas over a long planning horizon.
In practical terms, the Regulations are designed to support Singapore’s electricity system planning and fuel security for gas-fired generation. They do this by requiring each PGE to include, in its long-term gas supply contract with Gasco (the central gas importer), a minimum gas procurement term for each year within a “10-year forward period”. The minimum quantity is not a flat number; it is calculated using a formula that reflects projected gas demand, a phased contracting percentage across the 10-year horizon, the PGE’s expected share of gas-driven generation, and the amount the PGE has already contracted.
The Regulations also create an administrative mechanism for the Energy Market Authority (EMA) to forecast demand, model generation dispatch, allocate quantities to each PGE, and notify PGEs in advance. They further allow EMA to revise allocations if new circumstances arise, with corresponding contractual adjustments required from PGEs.
What Are the Key Provisions?
1. Prescribing the entities (Regulation 3 and the Schedule)
Regulation 3 provides that each entity specified in the Schedule is “prescribed for the purposes of Part 5B of the Act” as a prescribed generation entity (PGE). This is a threshold provision: only entities listed in the Schedule are subject to the gas contracting regime in Part 5B (as implemented by these Regulations). For practitioners, the Schedule is therefore not merely administrative—it is the gatekeeper to regulatory obligations.
2. Definitions that drive the allocation model (Regulation 2)
The Regulations define several concepts that are essential to the gas minimum calculation and EMA’s forecasting role. Key definitions include:
- “10-year forward period”: a rolling 10-year planning window. The first such period begins on 1 January 2028, and subsequent periods begin on 1 January of every even-numbered year thereafter. This matters for contract structuring and compliance timing.
- “Gas Demand Forecast” (GDF): the total quantity of gas EMA projects will be required for electricity generation by all PGEs to meet projected electricity demand in Singapore for a given year.
- “allocated quantity”: the amount calculated under Regulation 4(1) for a specified PGE for any year in a 10-year forward period.
- “gas driven generating unit”: a generating unit that uses gas for electricity generation.
- “Gasco”: the holder of a gas importer’s licence (central import) under the Gas Act 2001.
- “PGE”: defined by reference to section 41G of the Electricity Act 2001.
3. The minimum gas contracting requirement (Regulation 4(1))
Regulation 4(1) is the principal obligation. For every 10-year forward period, a PGE must, in its contract with Gasco, include a term requiring the PGE to obtain gas from Gasco for the 10-year forward period of an amount not less than a calculated minimum for each year. The minimum is expressed as: (A × B × C) − D
Where:
- A is the GDF for that year (EMA’s forecast of total gas needed for electricity generation by all PGEs).
- B is a percentage factor that depends on which year within the 10-year period it is.
- C is the percentage of expected total electricity generation by all PGEs for that year that may be attributed to the specified PGE’s gas-driven generating units.
- D is the amount of gas the specified PGE has already contracted to obtain for that year under specified statutory contract provisions (contracts entered into pursuant to section 41I(1) and contracts mentioned in section 41I(2) of the Act).
4. The phased contracting factor B (Regulation 4(2)(b))
The Regulations implement a “front-loaded but tapering” contracting approach. For each year in the 10-year forward period, B is:
- 80% if the year is the first or second year in the period
- 60% if the year is the third or fourth year
- 45% if the year is the fifth or sixth year
- 30% if the year is the seventh or eighth year
- 15% if the year is the ninth or tenth year
From a compliance and commercial perspective, this means the minimum gas procurement requirement is highest in the earlier years and declines over time, reflecting uncertainty and the practical need to avoid over-commitment far into the future.
5. Determining C using an economic dispatch model (Regulation 4(3))
Regulation 4(3) is particularly important for disputes and regulatory interpretation. It requires EMA to determine C by using an economic dispatch model to simulate expected total electricity generation by all PGEs for the year, and then attribute a percentage of that generation to the specified PGE’s gas-driven generating units based on their respective capacities and efficiencies.
This provision signals that C is not a simple contractual allocation or historical share; it is model-based and depends on technical parameters (capacity and efficiency) and the dispatch simulation. Practitioners should anticipate that C may become a focal point in governance, audit trails, and any challenge to allocations.
6. Negative allocations treated as zero (Regulation 4(4))
If the calculated amount (A × B × C) − D is negative for a year, it is treated as zero. This prevents the regime from requiring a PGE to “uncontract” or effectively pay for gas it has already contracted beyond the minimum framework.
7. EMA notification and revision powers (Regulation 4(5)–(6))
EMA must notify each PGE in writing of its allocated quantities for each year in the 10-year forward period not later than 18 months before the start of that period. However, EMA may change any allocated quantity earlier notified if new circumstances arise that necessitate the change, and must immediately notify the PGE in writing of the change. This creates both a planning certainty mechanism (advance notice) and an adaptive governance mechanism (ability to revise).
8. Contractual “modification” term required (Regulation 4(7))
Finally, the PGE must include in its Gasco contract a term that the allocated quantity for any year is to be modified to take into account any change made by EMA. This is a drafting requirement with legal consequences: without such a term, the PGE would be unable to comply with the regulatory allocation revision framework.
How Is This Legislation Structured?
The Regulations are structured as a short instrument with a conventional layout:
- Part/Section 1: Citation and commencement (Regulation 1), bringing the Regulations into force on 1 September 2025.
- Regulation 2: Definitions, establishing the technical and planning concepts used in the allocation formula.
- Regulation 3: Prescribed generation entities, linking the Schedule to Part 5B of the Electricity Act 2001.
- Regulation 4: Minimum amounts of gas, including the formula, the phased percentages, the EMA modelling requirement, notification timelines, and contract modification obligations.
- Schedule: The list of entities that are PGEs for the purposes of Part 5B.
Who Does This Legislation Apply To?
The Regulations apply to entities specified in the Schedule as “prescribed generation entities” (PGEs). In other words, the obligations in Regulation 4 are not universal across all electricity generators; they attach only to those designated as PGEs for Part 5B of the Electricity Act 2001.
In addition, the Regulations operate through the contracting relationship between each PGE and Gasco. While Gasco is defined, the explicit duty in Regulation 4 is imposed on the PGE to ensure its contract includes the required terms for minimum gas procurement and for modification to reflect EMA’s allocation changes.
Why Is This Legislation Important?
For practitioners, the PGE Regulations matter because they translate long-term energy planning into enforceable contractual obligations. The minimum gas contracting requirement is a legal constraint on how PGEs structure their fuel procurement and how they manage risk across a 10-year horizon.
Second, the Regulations create a regulatory allocation process anchored in EMA forecasting and modelling. The use of an economic dispatch model to determine C means that technical assumptions—such as unit efficiencies and capacities—can directly affect the minimum gas quantities. This has implications for regulatory engagement, internal modelling governance, and the evidentiary record if allocations are later disputed.
Third, the Regulations include a revision mechanism and require contract terms to accommodate changes. This reduces the risk that a PGE could be locked into outdated quantities if circumstances change, but it also means that contractual drafting must be carefully aligned with EMA’s statutory and regulatory powers.
Related Legislation
- Electricity Act 2001 (including Part 5B and relevant provisions referenced: sections 41G, 41I(1), 41I(2), and section 103)
- Gas Act 2001 (definition and licensing framework for Gasco, the central gas importer)
Source Documents
This article provides an overview of the Electricity (Prescribed Generation Entities) Regulations 2025 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.