Electricity Tariffs

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 Services, which is the market support services company that supplies electricity to C&I consumers.

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.

 

Fuel cost

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 contracts.

Non-fuel cost

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.
• Grid Charge
  This 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.
• Power System Operation and Market Administration Fees
  These fees are to recover the costs of operating the power system and administering the wholesale electricity market.