Higher oil prices push Singapore 2Q power tariff up

REGULATION | Higher oil prices push Singapore 2Q power tariff up

The electricity tariff for Singapore households for the second quarter increased from US$.0087 cents per kWh to US$.1338 per kWh.

The electricity tariff is reviewed quarterly and adjusted in line with changes in the cost of electricity.

The tariff increase in the second quarter is due largely to higher fuel oil prices. The average fuel oil price over the last three months has increased to US$52.89 per barrel, significantly higher than the US$41.95 per barrel fuel oil price used in setting the tariff previously.

This tariff revision has been mitigated by a reduction in the Market Support Services Fee from the existing rate of US$.0019 per kWh to US$.0015  per kWh. The reduction is due to productivity improvements and cost reductions by SP Services.

The tariff adjustments have been approved by the industry regulator, the Energy Market Authority.