Overall, the USEP* trended upwards between 2005 and 2012. In 2011, the USEP reached a historical high. During this period, there were multiple planned and unplanned gas curtailments by upstream gas suppliers. This resulted in increased utilisation of more expensive Fuel Oil-fired steam plants and with CCGT units running on Diesel.
The availability of Liquefied Natural Gas imports from 2013 facilitated additional generating capacity coming on-stream. This exerted downward pressure on the USEP. There was a notable spike in USEP in July 2015 due to multiple planned and unplanned maintenance of generation facilities and overlapping transmission constraints.
The USEP reached an all-time low in 2016 due to excess generation capacity in the market and declining oil prices. From 2017 to 2019, the increase in USEP corresponded with recovering oil prices and a tightening of supply conditions relative to demand.
*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 have generally trended upwards from 2017 to Q2 2020. There was a marginal increase in the Electricity tariff of 0.9% from 22.8 cents per kWh in June 2019 to 23.0 cents per kWh in June 2020.
The General Town Gas tariff decreased by 9.0% from 18.8 cents per kWh to 17.1 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.
Energy cost constitutes the largest component (75.0% or 17.7 cents per kWh) of electricity tariff in 2019. It is 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).