Singapore’s upcoming government-owned gas company will charge power generation companies on a so called cost-plus basis, on top of a regulated fee to cover operating costs, The Business Times reported, citing Second Minister for Trade and Industry Tan See Leng.

The initiative is aimed to ensure price competitiveness with a centralised gas procurement framework via a gas entity, also known as Gasco, intended to meet Singapore’s power generation needs instead of maximising profits, Tan said in a Parliament debate on Monday, while addressing proposed legislative changes relating to the energy market.

The city state passed laws on Monday which allows a government statutory board, Energy Market Authority, to direct power generation companies to purchase natural gas from Gasco. The central energy authority can also impose power rations during an emergency.

  - Bloomberg