USEP increased in the first three quarters of 2021 due to tighter demand-supply conditions. As COVID-19 measures were progressively lifted, electricity demand consequently increased, reaching levels comparable to the pre-COVID-19 periods.
The surge in USEP since Q4 2021 is attributable to at least three factors. First, global spot natural gas prices have been high and volatile with the ongoing global energy crunch, exacerbated by the Ukraine situation. Second, there were piped natural gas supply disruptions. Last, electricity demand continues to rise in tandem with higher economic activity as COVID-19 becomes endemic. Since 1H 2022, USEP has stabilised downwards with the introduction of pre-emptive measures to enhance Singapore’s energy security and resilience.
*The Uniform Singapore Energy Price (USEP) is the half-hourly energy price in the Singapore Wholesale Electricity Market. Energy withdrawal from the national grid is settled at the USEP.
The regulated Electricity tariffs trended upwards from 2020 to Q2 2022. Overall, the regulated Electricity tariffs increased by 20.8% from an average of 22.1 cents per kWh in 2020 to an average of 26.7 cents per kWh in 2022 (as at Q2 2022).
The same upward trend was observed for the General Town Gas tariffs. Overall, the General Town Gas tariff increased by 22.9% from an average of 17.0 cents per kWh to an average of 20.9 cents per kWh during the same period.
1. Electricity and Town Gas tariffs are regulated by the EMA. The tariffs are updated quarterly to reflect changes in the cost of generating/producing and delivering electricity/gas to consumers.
2. There are three categories of Town Gas tariffs. They are (i) General Tariff, (ii) Bulk Tariff A, and (iii) Bulk Tariff B. The Town Gas tariffs are categorised according to the consumption of Town Gas per month. The General Tariff applies to consumers who consume less than 1,000 kWh of Town Gas per month. The Bulk Tariff A and Bulk Tariff B apply to consumers who consume a minimum consumption of 1,000 kWh and 50,000 kWh of Town Gas per month respectively.
*Data for 2022 is as at Jun-22.
Energy cost constituted the largest component (76.8% or 20.5 cents per kWh) of electricity tariff in 2022 (as at Q2 2022). It was calculated using the average of daily Natural Gas prices (indexed to Oil prices) in the first two-and-a-half months in the preceding quarter.
Note: The four main components of Electricity tariffs in Singapore are (i) Energy Costs (paid to the generation companies), (ii) Grid Charges (paid to SP PowerAssets), (iii) Market Support Services Fees (paid to SP Services), and (iv) Market Administration and Power System Operation Fees (paid to the Energy Market Company and the Power System Operator respectively).
*Data for 2022 is as at Jun-2022.