Electricity Tariff Increase Today — How Much More Are You Paying?

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Electricity Tariff Increase

This is not an April Fool’s Joke.

Following the 30% water price hike, Singaporeans can now expect electricity bills to increase too.

According to Channel NewsAsia, electricity tariffs are set to rise by an average of 6.1% for the next three months.

For households, the expected increase will go up from 20.20 to 21.39 cents per kWh for Apr 1 to Jun 30.

In other words, the average monthly electricity bill for a family living in a four-room HDB flat will increase by $4.12, SP Group said.

Source

They added:

The increase is largely due to the cost of natural gas for electricity generation, which increase by 12% compared to the previous quarter

SP Group reviews the electricity tariffs on a quarterly basis, based on guidelines set by the Energy Market Authority (EMA), Singapore’s electricity industry regulator.

electricity-tariff-increaseSource

Looking at the graph that projects the various quarterly increases, electricity tariffs reached a record breaking high in Jul – Sep 2015, there was a steady decrease to Apr – Jun 2016.

Since then, a somewhat steady increase is observed, with Jul – Sep 2016 to Oct – Dec 2016 seeing  a slight decrease of 0.14 cents/kWh.

21.39 cents/kWh for Apr – Jun 2017 isn’t the highest in comparison to the previous seven quarters, but Singaporeans are displeased, since the water price hike was last announced in Budget 2017.

How Are Electricity Tariffs Set

In a 2014 article by Today, Juliana Chow, Director of Corporate Communications, Energy Market Authority explained how electricity tariffs are set in Singapore.

Electricity tariffs are adjusted every quarter, in order to reflect changes in fuel and non-fuel costs — what electricity tariff comprises of.

Fuel costs are the costs of natural gas that is used to produce more than 90% if Singapore’s electricity.

While the main elements of non-fuel costs are grid charges, capital and operating costs of companies that generate them.

All Is Not Lost

Ways to cut down our electricity intake are aplenty, now is the time to implement them.

The monsoon season, for instance, season lowers the horrid temperature in Singapore down. No need for air-conditioners!

It’s time we made the best out of the worst situations, after all, a lady showed us that it’s possible to get a $3 water bill — who knows what our fellow countrymen might come up with this time?
Featured image from Propertyguru

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