Tariff rate for electricity consumption

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When it comes to electricity supply in Singapore, the residents purchase it from the body called Singapore power (SP) group. (SP) was formed and was given the mandate to regulate the supply of power at the households.  It reviews the electricity tariff on a quarterly basis before the complete liberalisation of the market in Singapore. After this transition of liberalisation, this mandate was taken by another body called Energy Market Authority in order to ensure fairness when it comes to reviewing the tariff that has been set up by Singapore Power so as to ensure that the price is fair and sustainable as well. When it comes to tariff rate, there are some factors that we need to take into account in order to come up with a fair tariff.

Types of tariff

There are two types of tariff that we are going to discuss in this article so that you can have an in-depth knowledge about electric tariff.

Fuel cost

A lot of electricity that is produced in Singapore entirely depends on natural gas which is normally imported into the country through commercial contracts. Therefore, their global fuel price will have a huge implication on the production of electricity in this country. In case the price of natural gas goes high, the importation price increases which subsequently will increase the production cost, and the tariff will in return go high. When it comes to the calculation of the tariff, there is a formula that is normally used to come up with the standard price. They normally take the average daily natural gas consumption price of the last two and half months to set the base for the next quarter, for instance, they take the price of average gas consumption price of let’s say July and September to set up the price for October and December.

Non-fuel cost

This is another factor that needs to be considered because it will contribute directly to the tariff. Basically, this includes the cost of generating that power and delivering that power to the various households.

-Network Costs

This is the cost that the company incurs for transporting the electricity through the power grid.

-Power Generation Cost

This is basically the cost that is used during the generation of the electricity at the power station. You will agree with me that it’s in the power station where a sizable amount of money is used and it is then passed over to the consumer. These costs include manpower and the maintenance cost in the station.

-Market Support Services

This is the cost that is aimed to recover the amount of money used by the professionals in the field while they are performing their normal duties. These duties include meter reading, market development initiatives, and data management.

– Market Administration Fees

This is the amount they get for administering electricity in the market


Tariff rate for electricity consumption and switching between energy providers are some of the most effective ways to see long-term savings on utility bills. These are also other options like replacing old appliances with newer appliances with low energy consumption. Now this is your secret. Take steps to eliminate bad habits such as turning on the light when the room is empty. Eventually, you will pay a lesser amount in your electric bill.

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