The regulated tariff is set to reflect the actual cost of electricity production.
When pricing electricity, we believe in reflecting its true cost to discourage wasteful consumption.
EMA commissions benchmarking studies which have shown that our regulated electricity tariff for residential consumers is comparable to that of similar cities around the world.
Source: The Lantau Group, (based on electricity prices in 2019)
Understanding the Tariff
The regulated tariff comprises mainly two cost components: fuel cost and non-fuel cost.
This 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 to smoothen out any large swings in the oil markets.
In Singapore, electricity is produced using mainly imported natural gas which is tied to oil prices by commercial contracts. This practice is similar to that practised in other markets in Asia for natural gas contracts.
This component reflects the cost of generating and delivering electricity to consumers. It includes the following cost components:
Network Costs (paid to SP PowerAssets)
This is to recover the cost of transporting electricity through the power grid.
Market Support Services Fee (paid to SP Services)
This is to recover the costs of billing and meter reading, data management, retail market systems as well as for market development initiatives.
Market Administration and Power System Operation Fees (paid to Energy Market Company and Power System Operator respectively)
These fees are to recover the costs of operating the power system and the wholesale electricity market.
Power Generation Cost (paid to power generation companies)
This covers mainly the costs of operating the power stations, such as manpower and maintenance costs as well as the capital costs of the stations.
(27.74 cents/kWh before GST; 29.96 cents/kWh after GST)
Switchback to Regulated Tariff
All residential consumers are able to switch from other electricity purchase options back to the regulated tariff. Please follow these steps to do so.
For non-residential consumers, only those with an average monthly consumption of below 4 MWh can switch back to the regulated tariff. This is because they do not have the same bargaining power as larger consumers do and can only depend on the regulated tariff as their fallback option. Please follow these steps to do so.