Primary Components of Electricity Tariff Singapore
Recognizing the Tariff
Households were mandated to receive energy from Singapore Power (SP) Group at a quarterly-reviewed electricity tariff before the total liberalization of the retail electricity market in Singapore, also known as the launch of the Open Electricity Market. The Energy Market Authority (EMA), which oversees the electricity sector and maintains Singapore’s electricity supply at reasonable costs, regulates the electricity tariff singapore to represent the fair cost of electricity as closely as possible.
However, with the electricity market now open, new retail actors in Singapore are now responsible for the delivery of electricity. Lower electricity prices are now available to consumers due to the increasing competition.
Four primary parts of the power tariff
- Market management fees and operating costs for power systems (paid to Energy Market Company and Power System Operator): This fee is evaluated yearly to recoup the costs of running the electricity wholesale market and power grid.
- Fee for Market Support Services (Paid to SP Services): Each year, this cost is revised. This is done to recoup data administration costs, retail market systems, invoicing and meter reading, and market development initiatives.
- (Paid to SP PowerAssets) Network Cost Each year: this cost is revised. This is done to recoup the expense of sending electricity through the electrical system.
- Cost of energy (paid to the corporations that produce it): This element is modified every three months to account for variations in the price of fuel and electricity production.
The Singaporean government has mandated SP Group to use the national power system to transmit and distribute electricity to Singaporean consumers.