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Singapore electricity tariffs to increase by 1.2% from July to September 2023

Grid operator SP Group cited higher energy costs as a reason for the electricity tariff increase.

Toa Payoh housing estate in Singapore at night, illustrating a story on increasing electricity tariffs.
Singapore electricity tariffs are set to increase for the July–September 2023 quarter. (PHOTO: Getty) (Kum Seong Wan via Getty Images)

SINGAPORE — Consumers are set to pay more for electricity bills for the period of 1 July to 30 September 2023 as electricity tariffs are set to increase by an average of 1.2 per cent, or 0.31 cent per kWh compared with the previous quarter.

Grid operator SP Group said in an announcement that this was due to higher energy costs compared with the previous quarter.

For households, the electricity tariff before goods and services tax (GST) will increase from 27.43 to 27.74 cents per kWh for the said period.

SP Group added that the average monthly electricity bill for families living in Housing Development Board (HDB) four-room flats will increase by $1.14 before GST.

SP Group said that the electricity tariff will be reviewed quarterly based on guidelines set by the electricity industry regulator Energy Market Authority (EMA).

Table showing the average monthly electricity bills for households.
Singapore electricity tariffs to increase by 1.2% from July to September 2023. (SCREENSHOT: SP Group) (SP Group)

Breakdown of electricity tariff

The electricity tariff consists of four components: energy costs, network costs, market support services fee, and market administration and power system operation fee.

The energy costs component, which is paid to power generation companies, is adjusted quarterly to reflect changes in the cost of fuel and power generation. Fuel cost is based on the cost of imported natural gas, which in turn is tied to oil prices by commercial contracts, while the cost of power generation covers the costs of operating power stations.

Network costs are used to recover the cost of transporting electricity through the power grid.

Market support services fee, which is paid to SP Group, is used 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 is 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.

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