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Photo of power plant in Penang, Butterworth (by siam.pukkato/shutterstock.com)

Malaysia cancels electricity agreements: 13 cents vs S’pore’s 23 cents?

Why is the electricity tariff in Singapore almost double that of Malaysia’s?

I refer to the article “Kuala Lumpur to scrap energy deals as it moves to cut tariffs” (Straits Times, Jul 23).

It states that Ms Yeo Bee Yin, Malaysia's Energy, Technology, Science, Climate Change and Environment Minister vows to reform power producer contracts, and that power producers get a guaranteed “capacity payment” whether or not the supply is used, meaning that while larger reserves cut the chance of blackouts, tariffs also increase.

“The money is just ridiculous and you don’t need these plants. Normally, people have less than 20 per cent margin. If we don’t cut some of the plants that are going to come up, we are going to hit 46 per cent. Who is going to pay for it?” Ms Yeo said on Friday.”

As to “Ms Yeo has already discounted nuclear power and will not factor large hydroelectric plants into the renewable energy target due to their ecological cost. This leaves solar as the main option, with current market prices at just under 40sen/kWh (S$0.13)” – in contrast, Singapore’s current electricity tariff is 23.65 cents.

So, does it mean that Singapore’s electricity tariff is 82 per cent (23.65 divided by 13 cents) higher than Malaysia’s?

With regard to “This is over 30 per cent higher than the EC’s estimated generation costs of 27.05sen/kWh (S$0.09) for this year to 2020” – what is the “generation costs” in Singapore?