Commercial and industrial (C&I) consumers of electricity are
grouped into either contestable or non-contestable consumers in Singapore.
Contestable consumers are able to buy electricity from a number of retailers
or wholesalers in an open market.
C&I consumers who remain non-contestable will continue to buy electricity from SP Group,
which is the market support services company that supplies electricity to
This tariff comprises two key components –
fuel cost and non-fuel cost.
The fuel cost, or cost of imported
natural gas, is tied to oil prices by commercial contracts, which can change
depending on global market conditions. The non-fuel cost is the cost of generating
and delivering electricity to homes.
Find out more about past electrical tariffs from SP Group.
This component of the tariff is calculated using the average of daily natural gas prices in the first two-and-a-half month period in the preceding quarter. For example, the
average natural gas price between April and June is used to set the
tariff for July to September.
This helps smoothen out any large swings in
the oil markets. For households, this means electricity tariffs that are
reflective of prevailing market conditions.
About 95 per cent of Singapore's
electricity is generated from imported natural gas, the prices of natural gas are
indexed to oil prices. This is the market practice in Asia for natural gas
This part of the tariff reflects the cost
of generating and delivering electricity to our homes. It includes:
- Power Generation Cost
This covers mainly the costs of operating
the power stations, such as the manpower and maintenance costs, as well as the
capital costs of the stations.
- Network Costs
is to recover the cost of transporting electricity through the power grid.
- Market Support Services (MSS) Fee
This is to recover the costs of billing and meter reading, data management, retail market systems as well as for market development initiatives.
System Operation and Market Administration Fees
These fees are to recover the costs of
operating the power system and administering the wholesale electricity market.
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