The Energy Market Authority (EMA) of Singapore controls singapore electricity tariff, which are updated every three months to account for changes in the price of electricity.

Singaporean residential customers purchase electricity from SP Group, a market support services provider governed by EMA. The EMA, the organization that oversees the electricity industry and guarantees that Singapore’s electricity supply is provided at reasonable costs, regulates the SP Group tariff, which is reviewed every three months.

The tariff has two essential components:

 The cost of fuel and the cost of non-fuel.

Commercial agreements link the cost of fuel, or the cost of imported natural gas, to oil prices. Depending on the state of the world market, this can alter. The price of producing and transporting energy to residences is included in the non-fuel cost.

Fuel prices

singapore electricity tariff

The average daily price of natural gas over the first two and a half months of the previous quarter is used to compute this tariff element. For instance, the tariff for July through September is determined using the average natural gas price between April and June.

This aids in minimizing any significant fluctuations in the oil markets. This means that for households, power rates will reflect the state of the market.

Natural gas imports are used to create about 95% of Singapore’s electricity, and their costs are linked to those of crude oil. This is how natural gas contracts are traded in Asia.

Other costs

The cost of creating and supplying electricity to consumers is reflected in this tariff portion. It contains:

  • Cost of power generation

This essentially comprises the capital expenses for the power stations and the running expenses, including labor and maintenance costs.

  • Network Prices

This is done to recoup the expense of sending electricity through the electrical system.

  • Fee for Market Support Services

This is done to recoup data administration costs, retail market systems, invoicing and meter reading, and market development initiatives.

  • Fees for Market Administration and Power System Operation

Specific fees are levied to pay the costs of running the power infrastructure and managing the wholesale electricity market.

Benchmarking studies that EMA frequently commissions reveal that regulated household tariff is comparable to cities worldwide with similar climates. Singapore doesn’t have the highest or lowest tariffs. To reduce wasteful usage, Singapore follows the notion of pricing electricity to reflect its actual cost.