Here's a good news for people in Singapore who are forever worried about electricity bills. SP Group has announced on Saturday, September 30, that Singapore will witness a 2.1 percent decrease in electricity tariffs for three months, starting from October.
The household electricity tariff will come down from 20.72 cents to 20.30 cents per kWh, starting from October 1 till December 31, said SP Group in a statement. For people living in four-room Housing and Development Board (HBD) flats, the electricity bill is expected to reduce by S$1.59, according to an estimate by the group.
"The tariff reduction is due to the lower cost of natural gas for electricity generation as well as lower non-fuel costs," explained SP group, which is responsible for reviewing the electricity tariffs every three months. Their review is based on the electricity industry regulator, Energy Market Authority's (EMA) guidelines.
At least for the next three months, Singaporeans will get a tiny amount of relief from their budget woes. However, the company did not specify whether it will be extended further or reverted to the old tariff.
Electricity tariffs are regulated by the Energy Market Authority (EMA) and revised quarterly to reflect the actual cost of electricity. SP Services buys electricity and pays the generation companies, transmission licensee and other market players, before supplying its customers. The rates of the cost components are approved by EMA.
BREAKDOWN OF ELECTRICITY TARIFF:
1. The electricity tariff consists of the following four components:
a) Energy costs (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of power generation.
b) Network costs (paid to SP PowerAssets): This fee is reviewed annually.
c) Market Support Services Fee (paid to SP Services): This fee is reviewed annually.
d) 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.