Electricity tariffs to reach the highest in 5 years with Jan-March increase

Singapore — The SP Group has announced that electricity tariffs are set to rise in the first quarter of 2020, making them the highest in five years.

It cited higher energy costs compared with the previous quarter as the reason for the increase.

From Jan 1 to March 31, electricity tariffs (before 7% GST) will increase by an average of 3.5% or 0.81 cent per kWh, which for households would mean a rise from 23.43 cents per kWh to 24.24 cents per kWh.

Out of all the housing types, bungalow houses face the greatest increase in electricity tariffs, with an average monthly increase of S$18.27. The average monthly increase for 4-room and 5-room Housing Development Board flats is S$2.76 and S$3.20 respectively.

According to the SP Group, the electricity tariff consists of the following four components:

a) Energy costs, which include monies paid to the generation companies. These also include the cost of fuel and power generation.

b) Network costs which recover the cost of transporting electricity through the power grid.

c) Market Support Services Fee to recover the costs of billing and meter reading, data management, retail market systems as well as for market development initiatives.

d) Market Administration and Power System Operation Fee to recover the costs of operating the electricity wholesale market and power system. /TISG