*before 7%

GST SP Group reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator. The tariffs shown in Appendix 2 have been approved by the EMA.

Issued by: SP Group

2 Kallang Sector

Singapore 349277

www.spgroup.com.sg

Appendix 1

BREAKDOWN OF ELECTRICITY TARIFF

1. The electricity tariff consists of the following four components:

1. 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.
2. Network costs (paid to SP Group): This fee is reviewed annually. This is to recover the cost of transporting electricity through the power grid.
3. Market Support Services Fee (paid to SP Group): This fee is reviewed annually. This is to recover the costs of billing and meter reading, data management, retail market systems as well as for market development initiatives.
4. 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.