1. How is the electricity tariff determined?
2. Why are electricity tariffs pegged to oil prices when Singapore uses mainly natural gas to generate electricity?
3. If electricity prices are pegged to fuel oil prices why is it that the increase does not correspond with the movement in fuel oil prices?
4. What is the average monthly electricity and gas consumption for the various household types?
Q: What are the main cost items in the tariff?
There are four main cost components in the electricity tariff. They are:-
Energy Cost: This is paid to the generation companies. This component is adjusted quarterly to reflect change in the cost of electricity.
Network Cost: This is paid to SP PowerAssets. This fee is reviewed every year.
MSS Fee: This is paid to SP Services. This fee is reviewed every year and has been reduced by 21% since Jul 2009.
Market Admin & PSO Fee: This is paid to EMC (Energy Market Company) and PSO (Power System Operator). This fee is reviewed every year to recover the costs of operating the electricity wholesale market and power system.