Higher electricity tariffs for three months from Tuesday

The new rate for households from April 1 to June 30 will be 25.73 cents per kilowatt hour (kwh), up from 25.65 cents. A family in a four-room Housing Board flat, for example, could pay $0.26 more per month.

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Here is the press release from SP Services:

Electricity tariff revision for the period 1 April to 30 June 2014

For the period from 1 Apr to 30 Jun 2014, electricity tariffs will increase by an average of 0.3 per cent or 0.07 cent per kWh. The increase is due to a 1.3 per cent rise in fuel costs, which was partially mitigated by a reduction in non-fuel costs.

For households, the electricity tariff will increase from 25.65 to 25.73 cents per kWh for 1 Apr to 30 Jun 2014. The average monthly electricity bill for families living in four-room HDB flats will increase by $0.26.

SP Services reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator.

Breakdown of electricity tariff

The electricity tariff consists of the following four components:

a) Energy cost (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of power generation.

b) Network cost (paid to SP PowerAssets): This fee is reviewed annually.

c) Market Support Services Fee (paid to SP Services): This fee is reviewed annually.

d) Market Administration and Power System Operation Fee (paid to Energy Market Company and Power System Operator): This fee is reviewed annually to recover the costs of operating the electricity wholesale market and power system.