Singapore electricity tariff is a big topic for Singaporeans. The cost of electricity has been rising in the past few years. In fact, it is the second-highest household expenditure after transport.
It is vital for Singaporeans to know about the basis of this trend as well as how they can cushion themselves from high electricity bills.
The Singapore Electricity Tariff Has Increased Four Times in a Row
The electricity tariff for households will increase by an average of 5.6% for the first quarter of 2022. This is the fourth consecutive quarterly tariff increase in Singapore.
The steepest tariff hike will be for households living in HDB executive flats ($6.59 increase). If you live in HDB one-room flats, you are paying $1.92 more than last year. Visit https://www.senokoenergy.com/households if you need a smarter energy retailer that will help you save on your electricity bills.
SB revealed the tariff news on 30th December 2021. The SB said that the tariff increase is based on the increasing fuel costs. Singapore depends almost entirely on imported natural gas to produce electricity. Global natural supply has been disrupted, resulting in high oil prices and consequently higher electricity rates.
The 5.6% increase has seen Singaporeans spending around 25.44 cents per kWh of electricity exclusive of GST. With GST, the rate is about 27.22 cents per kWh.
Components of Electricity Tariffs Singapore
Before selecting a new electricity plan, it’s essential to understand your electricity usage and the components that make up your monthly bill.
In Singapore, the following are the primary components of electricity tariffs:
- Energy costs
- Network costs and market support services fees
- Market administration and power system operation fees
When all these components are combined, your electricity bills are calculated based on factors such as time of use, your power usage, and location.
Open Energy Market Can Benefit You as a Consumer
Open Energy Market is based on the idea that any person can join in and buy or sell energy from anyone else.
No more waiting around for the utility company to generate electricity, no more paying excessive prices. You can even put your solar panels up on your roof and sell the extra energy you make to other people!
When you choose to buy electricity in Singapore, you can enjoy greater choice and flexibility through the open energy market. There is a wide variety of competitive pricing options and innovative offers available to you.
With the Open Electricity Market, you have the choice of buying electricity from:
- SP Group at the existing regulated tariff.
- An electricity retailer where you can choose a plan that best suits your needs.
- A wholesaler at wholesale electricity prices via the SP Group.
The Future of Singapore Energy Market
How do you think the Singapore Electricity Tariff Trend will change in the next five to ten years?
Singapore’s energy market might become more liberalized, based on past projections. Consumers can choose their power retailers and vice versa, and there is a possibility of electricity price fluctuation.
For now, you should switch to a greener electricity plan that will reduce your electricity bills over the long term while contributing to a cleaner planet.