Electricity tariff raised by 2.21 cents per kWh
The increase was implemented on the back of higher energy costs.
State-affiliated electricity distributor, SP Group has raised its electricity tariff by 2.21 cents per kilowatt-hour (kWH), an increase of 8.1% from the previous quarter.
This increase starts today, 1 June 2022, and will be in place until 30 September.
Not including the 7% GST the electricity tariff will increase from 27.94 to 30.17 cents per kWh for households, translating to an increase of $8.25 in the monthly bills of families living in HDB four-room flats.
For families living in other types of housing, the average increases on their monthly bills are as follows:
According to SP Group, it had to raise the electricity tariff amidst higher energy costs “driven by rising global gas and oil prices exacerbated by the conflict in Ukraine.”
Energy cost is amongst the four components that comprise electricity tariffs. Other components are network costs, market support services fee, and market administration and power system operation fee.
SP Group said energy cost is “adjusted quarterly to reflect changes in the cost of fuel and power generation.”
“The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts. The cost of power generation covers mainly the costs of operating the power stations, such as the manpower and maintenance costs, as well as the capital cost of the stations,” it said.