Wednesday 30 December 2015

Electricity tariffs will fall in first quarter of 2016: SP Services



Source: CHANNEL NEWSASIA

SINGAPORE: Electricity bills will fall in the first three months of 2016, due to the lower cost of natural gas, SP Services announced on Thursday (Dec 31). This will see electrical bills lower than at any point in 2015.
For the period spanning Jan 1 to Mar 31, 2016, electricity tariffs will decrease by an average of 4.2 per cent, or 0.85 cent per kilowatt-hour (kWh), compared to the previous quarter. The tariff reduction is due to the lower cost of natural gas for electricity generation which fell by 8.9 per cent compared to the last quarter of 2015, SP Services said.

This will see electrical bills in Singapore lower than at any point in 2015.

This means that for households, the electricity tariff will decrease from 20.35 to 19.50 cents per kWh for the first three months of 2016. As a result, the average monthly electricity bill for families living in four-room HDB flats will decrease by S$3.55, the utilities company said.

Electricity tariffs are reviewed by SP Services quarterly, based on guidelines set by the Energy Market Authority, the electricity industry regulator. The electricity tariff consists of four components: Energy cost, paid to the generation companies, which is reviewed quarterly; and three fees reviewed annually - the Network Cost, Market Support Services Fee, and Market Administration and Power System Operation Fee.

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