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 are not
eligible to be contestable will continue to buy electricity from SP Services,
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
through this link from SP
This component of the tariff is based on
the average fuel oil price in the previous three months. For example, the
average fuel oil price between April and June 2014 was used to set the tariff
for July to September 2014.
This formula helps smoothen out any large
swings in the fuel 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 – which are
determined by commercial contracts – are indexed to fuel oil prices. This is
the market practice in Asia for natural gas contracts. Hence, if the prices of
fuel oil increase by 10 per cent, natural gas prices would also increase by 10
This part of the tariff reflects the cost
of generating and delivering electricity to our homes. It includes:
Power Generation Cost
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.
This is to recover the cost of transporting
electricity through the power grid.
Support Services (MSS) Fee
This is to recover the costs of billing and
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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