Singapore Electricity Tariffs To Increase By 10% From Apr To Jun 2022
Over a month into the Ukraine-Russia conflict, Singaporeans are starting to feel the far-reaching effects of the war for themselves.
The conflict has exacerbated rising energy costs, which, for the regular resident would mean an increase in household electricity tariffs.
From 1 Apr to 30 Jun, electricity tariffs will rise from the current 25.44 cents per kilowatt-hour (kWh) to 27.94 cents per kWh, excluding GST.
This is reportedly the 5th consecutive quarter in which electricity tariffs have increased.
Electricity & gas tariffs increase for Q2
For the next quarter of 2022, most Singapore households will experience an increase in their electricity bills as tariffs rise by about 10%, stated Channel NewsAsia (CNA).
Citing SP Group, CNA reported on Thursday (31 Mar) that electricity tariffs will increase to 27.94 cents per kWh, a 2.5 cents increase per kWh.
For an average 4-room HDB flat household, which consumes about 349kWh per month, this will mean an increase of about $8.73, excluding GST.
This apparently makes for the 5th consecutive quarter of increase in electricity tariffs. The increase in the upcoming months will be about double the increase in the previous quarter.
According to SP Group, this is largely due to higher energy costs arising from substantially higher global gas and oil prices.
This cost increase is further exacerbated by the Ukraine-Russia conflict.
Besides the electricity tariff hike, City Energy stated that gas tariffs for households will also be increasing to 21.66 cents per kWh in the next quarter. This is attributed to higher fuel and non-fuel costs.
Global energy crisis escalated by Ukraine-Russia conflict
All around the world, gas prices have reportedly hit record levels, resulting in increased electricity prices.
Behind the price increase, many factors are at play. This includes unanticipated demand for gas from pandemic-recovery, severe weather events, as well as reductions in global gas supply.
According to The Straits Times (ST), the global energy crisis has escalated due to the Ukraine-Russia war.
Russia holds 12% of the world’s oil supply as well as 17% of its natural gas.
Its impacts will be felt in Singapore, where we rely on imported gas for about 95% of electricity needs.
Tariff hikes are regulated
Singapore’s electricity tariffs are calculated based on the following components:
- energy costs paid to generation companies
- network costs and market support services fees paid to SP Group
- market administration fees paid to energy market company
- power system operation fees paid to operator
Tariffs are reviewed quarterly based on Energy Market Authority’s (EMA) guidelines.
The upcoming months’ tariff hike remains lower than the peak tariff seen in the decade, which went up to 28.78 cents per kWh, excluding GST in the fourth quarter of 2008.
This is due to the regulated nature of the tariff hike here. It is part of authorities’ efforts to secure energy supply and support consumers here in the midst of volatile electricity prices.
Hope global energy crisis will ease soon
With electricity tariffs going up once again in the next 3 months, it’s perhaps time to be more mindful about our energy consumption.
Now that many of us are returning to our workplaces, this could possibly relieve the burden slightly.
Hopefully, as talks progress between Russia and Ukraine, they will be able to resolve matters in due time, helping to ease the global energy crisis.
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Featured image adapted from Private Home.
