Despite stable oil prices, Singapore Power is raising electricity tariff by 2.4%. Reason given: "higher capital and operating costs of power generation". But what are the specifics? Is it to pay the fat cats in Singapore Power management? Or is it to cover for the expected losses from SP Ausnet bushfire lawsuits?
Jun 30, 2010
Power bill to go up 2.4%
ELECTRICITY bill for Singapore households will go up by 2.42 per cent in the next quarter from July to September.
SP Services, a member of the Singapore Power Group, on Wednesday said it is raising the electricity tariff for all customers by or 0.57 cents (S$0.0057) per kWh to 24.13 cents (S$0.2413) per kWh in the the next quarter. With the hike, families in four-room HDB flats will pay about $2.33 more a month, on average.
In a statement, SP Services said although the average fuel oil price over the last three months has remained stable at about S$102 per barrel, the non-fuel components of the tariff have increased due to higher capital and operating costs of power generation. The tariff also includes an adjustment for under-collection in the previous quarter, it added.
The increase, said SP Services, is due to the following four components:
Increased by 0.57 cents per kWh to 18.93 cents per kWh which is paid to the generation companies. This component, which includes fuel and non-fuel components, is adjusted quarterly to reflect change in the cost of power generation.
Unchanged at 4.92 cents/kWh which is paid to SP PowerAssets. This fee is reviewed every year and has been reduced by 10 per cent since Oct 2008.
Market Support Services Fee:
Unchanged at 0.22 cents per kWh which is paid to SP Services. This fee is reviewed every year and has been reduced by 21 per cent since July 2009.
Market Administration and Power System Operation Fee:
Unchanged at 0.06 cents per kWh which is paid to EMC (Energy Market Company) and PSO (Power System Operator). This fee is reviewed every year to recover the costs of operating the electricity wholesale market and power system.
SP Services reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator which has approved the latest tariff hike.