SP Group, a market support services business regulated by the EMA, sells electricity to Singapore residents. The EMA regulates the SP Services pricing, which is adjusted every quarter to reflect the real cost of electricity.
The cost of gasoline and the cost of non-fuel are the two main components of electricity tariff singapore.
Commercial contracts bind the cost of fuel, or the cost of imported natural gas, to oil prices. This varies depending on the state of the global economy. The cost of generating and providing power to residences is known as the non-fuel cost.
The average of daily natural gas prices for the first two-and-a-half months of the previous quarter is used to compute this component of the tariff. The average natural gas price from April to June, for example, is used to determine the tariff for July to September.
This helps to smooth out any significant fluctuations in the oil markets. Electricity pricing that is representative of current market conditions is what this means for households.
Natural gas is used to create about 95% of Singapore’s electricity, and natural gas prices are related to oil prices. This is how natural gas contracts are traded in Asia.
Non- fuel Cost
The cost of generating and supplying power to our homes is reflected in this section of the tariff. Costs of Power Generation are included. This mostly covers the costs of operating the power stations, such as staffing and maintenance, as well as the stations’ capital costs.
This is to recoup the cost of electricity transmission through the power system.