Media Release
Electricity Tariff Revision For the Period 1 Oct to 31 Dec 2020
Singapore, 30 September 2020 – For the period from 1 October to 31 December 2020, electricity tariff (before 7% GST) will increase by an average of 1.83 cents per kWh compared with the previous quarter. The revised tariff and that of the preceding quarter are the lowest in the last three years.
The increase this quarter is due to higher energy costs, which forms a major component of the electricity tariff and is paid to power generation companies. The remaining components of the tariff, consisting of network costs and market support services fees to SP Group and Market Administration and Power System Operation Fee to Energy Market Company and Power System Operator, remain unchanged (Appendix 1: Breakdown of Electricity Tariff).
For households, the electricity tariff (before 7% GST) will increase from 19.60 to 21.43 cents per kWh for 1 October to 31 December 2020. The average monthly electricity bill for families living in fourroom HDB flats will increase by $7.01 (before 7% GST) (Appendix 3: Average monthly electricity bills of domestic customers).
*before 7% GST
The electricity tariffs are reviewed 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.
Appendix 1
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 PowerAssets): This fee is reviewed annually. This is to recover the cost of transporting electricity through the power grid.
- Market Support Services Fee (paid to SP Services): 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.
- 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.
Appendix 2
Appendix 3
