Singapore, 29 September 2023 – For the period from 1 October to 31 December 2023, the electricity tariff (before GST) will increase by an average of 3.7% or 0.98 cent per kWh compared with the previous quarter. This is due to higher energy costs compared with the previous quarter.
For households, the electricity tariff (before GST) will increase from 27.74 to 28.70 cents per kWh for the period from 1 October to 31 December 2023. The average monthly electricity bill for families living in HDB four-room flats will increase by $3.57 (before GST).
SP Group reviews the electricity tariffs every quarter based on guidelines set by the electricity industry regulator, Energy Market Authority (EMA).
Please refer to Appendix 1 for the components of the electricity tariff, Appendix 2 for the tariffs approved by EMA, and Appendix 3 for the average monthly electricity bills for households.
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.