Households in Singapore can expect to pay less for electricity from October to December, says SP Services.
In a media release on Wednesday, it said electricity tariffs will decrease by an average of 9.3 per cent – or 2.06 cents per kWh – compared to the previous quarter.
“The tariff reduction is due to the lower cost of natural gas for electricity generation which fell by 18.4 per cent compared to 3Q 2015,” the company said. “The electricity tariff for households will be revised to 20.35 cents per kWh for 4Q 2015.”
It said that the average monthly electricity bill for families living in four-room HDB flats will decrease by $8.78.
SP Services also explained how electricity tariffs are calculated.
BREAKDOWN OF ELECTRICITY TARIFF
The electricity tariff consists of the following four components:
a) Energy cost (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of power generation.
b) Network cost (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
Here’s a table provided by SP Services of how much households can expect to pay: