Singapore, 30 June 2022 – For the period from 1 July to 30 September 2022, electricity tariff (before 7% GST) will increase by an average of 8.1% or 2.21 cents per kWh compared with the previous quarter. The increase is mainly due to higher energy cost driven by rising global gas and oil prices exacerbated by the conflict in Ukraine. For details on the components of the electricity tariff, please refer to Appendix 1: Breakdown of Electricity Tariff. For households, the electricity tariff (before 7% GST) will increase from 27.94 to 30.17 cents per kWh for 1 July to 30 September 2022. The average monthly electricity bill for families living in HDB four-room flats will increase by $8.25 (before 7% GST) (Appendix 3: Average monthly electricity bills of domestic consumers).
*before 7% GST
SP Group reviews the electricity tariffs every quarter based on guidelines set by the electricity industry regulator, Energy Market Authority (EMA). The tariffs shown in Appendix 2 have been approved by EMA.
BREAKDOWN OF ELECTRICITY TARIFF
1. The electricity tariff consists of the following four components:
- Energy costs (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of fuel and power generation. The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts. The cost of power generation covers mainly the costs of operating the power stations, such as the manpower and maintenance costs, as well as the capital cost of the stations.
- Network costs (paid to SP Group): This is to recover the cost of transporting electricity through the power grid.
- Market Support Services Fee (paid to SP Group): This is to recover the costs of billing and meter reading, data management, retail market systems as well as market development initiatives.
- Market Administration and Power System Operation Fee (paid to Energy Market Company and Power System Operator): This fee is reviewed annually to recover the costs of operating the electricity wholesale market and power system.