RI 2022 H2 Y6 Timed Practice (Final)

9757/01/TP/Y6/22 © RI 2022 [Turn over RAFFLES INSTITUTION 2022 YEAR 6 TERM 2 TIMED PRACTICE Higher 2 ECONOMICS 9757/01 Paper 1 Case Study Questions March 2022 2 hours Additional Materials: Answer Paper READ THESE INSTRUCTIONS FIRST Write your name, index number and civics class on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for diagrams, graphs or rough working. Do not use paper clips, highlighters, glue or correction fluid. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. Start each Case Study on a fresh sheet of paper. At the end of the examination, fasten your answers to Case Study 1 and Case Study 2 separately. Detach this cover page and secure it in front of answers to Case Study 1. Question Marks Name: __________________________ Civics Class: _____________________ _____________________ 1 /25 Economics Tutor: ________________ 2 /25 This document consists of 7 printed pages and 1 blank page.

2 9757/01/TP/Y6/22 © RI 2022 [Turn over BLANK PAGE

3 9757/01/TP/Y6/22 © RI 2022 [Turn over Question 1: Electricity Market Background The electricity market consists of the wholesale electricity market and the retail electricity market. Power generation companies bid to sell electricity in the wholesale electricity market while electricity retailers buy electricity in bulk from the wholesale electricity market and compete to sell electricity to consumers in the retail electricity market. Extract 1: Volatile global market conditions Climbing electricity prices in Singapore come amid an unfolding global energy crisis in recent weeks, with reports of the soaring costs of gas supply chain disruptions worldwide. Demand for natural gas is further fueled by the gradual resumption of activities in post-COVID- 19 economies, which have reached their vaccination targets. Furthermore, global gas reserves have been shrinking due to the increase used of heating by residential and commercial consumers brought about by unexpected harsh winter conditions. Given that natural gas accounts for more than 95 per cent of electricity generation in Singapore, the developments in the natural gas market would have a huge impact on electricity prices in Singapore. Adapted from: The Straits Times, 2021 Table 1: Market share of Electricity Retailers in Singapore between 2011 and 2019 Source: Energy Market Authority Singapore, 2019

4 9757/01/TP/Y6/22 © RI 2022 [Turn over Extract 2: Liberalising the Electricity Retail Market in Singapore Previously, households and businesses had to purchase their electricity at a regulated electricity tariff price. The electricity retail market is liberalised to form the Open Electricity Market in 2018 to spur competition between power companies and to ultimately reduce energ