A record-breaking spike in electricity prices is short-circuiting Singapore’s efforts to liberalize its power sector, in the latest sign that the global crisis is delivering a blow to both energy suppliers and their customers.

Electricity supplier iSwitch Energy will cease power retail operations on Nov 11 due to “current electricity market conditions,” the company said on its website Wednesday. Existing customers will be transitioned to SP Group, Singapore’s state-owned power provider.

The surge in wholesale electricity prices is erasing profits for many independent retailers in Singapore, according to James Whistler, the global head of energy derivatives at Simpson Spence Young, which brokers electricity futures. “There is clearly a gas shortage that is causing issues, pipeline capacity is low and LNG supplies might not have been coming through either.”

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