The latest regulated electricity tariff in Singapore is 20.97 cents per kWh, as from 1st July to 30th September 2020. Fortunately, you can enjoy better prices by switching to electricity retailers.
This means that if you live a house with about four rooms, you can expect a monthly bill of approximately $12 on average use, which is a good price.
Since the launch of the open electricity market in Singapore, consumers have started switching electricity retailers such as Senoko energy to compare the best prices for favorable electricity deals.
With the many retailers supplying electricity in Singapore, consumers are benefiting from the competitive prices.
It is important to note that Singapore power electricity tariff is regulated and established based on certain factors. The focus of electricity tariff control is to ensure that the Energy Market Authority(EMA) can supply power to all consumers throughout the country.
What Affects My Electricity Prices?
Consumers who use more electricity, such as in organizations and industries receive lower rates, but the daily standing charges are high.
The price of your electricity is dependent on various factors, including fuel and non-fuel costs, which change according to global market conditions.
When these factors are favorable, electricity cost is reduced hence cheap pricing.
The prices for fuels like natural gas and petroleum may vary based on electricity demand. When the electricity demand is high, fuel prices may increase.
In Singapore, about 95% of electricity is generated from imported natural gas. The cost of natural gas is dependent on oil prices.
Fuel cost is determined by the average cost of day-to-day natural gas in the first two-and-half period of the preceding quarter.
Fuel supply constraints and disruptions in transportation and delivery may also affect electricity costs, especially in extreme weather conditions.
This is the cost of electricity generation and distribution to households. Non-fuels costs include;
Power Generation Cost
This is mainly the cost of operating the power station, such as labor force, maintenance cost, and power plant cost.
This is the cost incurred cost in building transmission and distribution systems to deliver power in homes. These systems also need maintenance and when necessary.
Market Support Services
This entails the cost of billing and meter reading in households and businesses.
Power System Operation and Market Administration Charges
As with other companies, Singapore’s power requires administration and management for the entire industry.
The power system operation and market administration will still cost some money, further affecting electricity pricing.
With the factors mentioned above, it makes sense when the electricity price depends on where you live. This can be ascribed to factors like the availability power plant, local fuel cost, and general regulations.
You might think that the weather has nothing to do with electricity, but in reality, adverse weather conditions may increase or reduce electricity prices. For example, rain and snow can favor the hydropower generation, and wind helps keep the turbines rotating.
However, inclement weather that increases the electricity demand can make it even more expensive.
Industrial Versus Household Consumers
Have you ever wondered who pays high electricity bills between household and industrial consumers?
The truth is, industrial consumers pay a lesser amount of electricity price per kWh than residential and commercial consumers.
The bottom line is, a large amount of electricity can be supplied once to industrial customers, making the generation and delivery cheap and fast.
On the residential and commercial sides, only a small amount of power is delivered at a time because they use less power. This leads to high costs of power generation and transportation.