Singapore to see electricity tariffs rise by 3.7% in the upcoming quarter
Singapore's SP Group announces a 3.7% electricity tariff hike for October-December, citing higher energy costs. This comes alongside a significant water price rise and a new S$1.1 billion government support package."
SINGAPORE: The SP Group announced on Friday an impending rise in electricity tariffs by 3.7 per cent for the months of October through December. This adjustment is expected to introduce an added cost of 0.98 cents per kWh, exclusive of the Goods and Services Tax (GST).
The SP Group, which Temasek wholly owns, stated that the proposed change is primarily in response to what they identified as higher energy costs from the previous quarter.
As a result, households can anticipate the electricity tariff, before GST, transitioning from 27.74 cents to 28.70 cents per kWh.
This means families in Housing Board's four-room flats might see their average monthly electricity bill increase by S$3.57 (equivalent to US$2.60) before GST.
SP Group detailed that the electricity tariff encompasses various components: energy costs relayed to generation companies, network costs, and market support service fees allocated to SP Group. Additionally, market administration and power system operation fees are due to energy market companies and power system operators.
It's worth noting that, according to SP Group's statement, the energy cost component—adjusted quarterly—serves as a reflection of fuel and power generation costs.
Specifically, fuel costs are tied to the pricing of imported natural gas, which, through commercial contracts, aligns with oil prices.
The power generation cost mainly considers operational overheads of power stations, encompassing aspects like manpower, maintenance, and the stations' capital costs.
Before this tariff adjustment news, PUB, the national water agency, recently announced an impending 18% rise in water prices over the subsequent two years, attributing it to escalated production and supply costs since 2017.
Simultaneously, in light of increasing living costs, the Singapore government has unveiled a fresh S$1.1 billion (US$800 million) cost-of-living support package.
Announced by Deputy Prime Minister Lawrence Wong, this initiative aims to bolster the financial well-being of Singaporean households, with a focus on the lower to middle-income brackets.
