Power bills up from July

Household power bills will be higher next month as Singapore Power yesterday announced that electricity tariffs will be raised from next Tuesday.

Families living in a one-room HDB flat can expect their monthly electricity bill to go up by an average of $1.20.

Owners of five-room HDB flats can expect their power bills to rise by an average of $5.

The average bill sizes are worked out based on the new electricity tariffs, which go up by 1.19 cents per kilowatt-hour (kWh) for all households from the next quarter, starting July 1.

With the new tariff, electricity will cost 25.07 cents per kWh.

This is an increase of about 5 per cent over the 23.88 cents consumers are paying this quarter.

Singapore Power said the increase is due to the higher cost of electricity arising from higher fuel prices.

In the next quarter, tariffs are pegged to a higher forward fuel oil price of US$82.61 (S$113) per barrel.

This is about 11 per cent higher than US$74.40 per barrel in the current quarter.

The electricity tariff is reviewed quarterly and adjusted according to fluctuation in the cost of electricity.

Tariffs have been on the rise since July last year when they increased by 8.83 per cent.

The cost of electricity then was 20.52 cents per kWh.

Tariffs increased by 5.94 per cent and 5.7 per cent during the first and second quarters of this year.

MPs raise concerns as power rates inch up

By Natalie Soh, ST

The latest increase in power tariffs has pushed the electricity rate to its highest level in eight years.

On Wednesday, SP Services, a subsidiary of Singapore Power, announced that for the next quarter, from April to June, electricity will cost 23.88 cents per kilowatt-hour (kWh).

This is a rise of about 5 per cent over the 22.62 cents per kWh consumers are paying this quarter.

The increase means a family living in a four-room HDB flat, using the average of about 355 kWh a month, will pay about $85 a month for electricity – a $12 increase over April 2006, when oil prices began their march to the current highs.

Just last week, oil hit an all-time high of US$110 (S$153) a barrel on Monday, although it fell to US$104 a barrel in trading on Wednesday this week.

In Singapore, electricity rates for homes are adjusted every quarter, depending on market circumstances.

Despite the rapid rise in oil prices, power tariffs have remained relatively stable: In April 2006, the tariff was 20.49 cents per kWh, barely three cents lower than today’s rate. In the same period, the price of oil has jumped by more than US$25 per barrel.

But Members of Parliament contacted by The Straits Times say their constituents are starting to feel the pinch.

Madam Halimah Yacob, an MP for Jurong GRC, said it was a question of timing: Although the electricity rate hikes are small, they come at a time when prices of other commodities are also going up.

As Mr Charles Chong, an MP for Pasir Ris-Punggol GRC, put it, ‘in some cases, the power price hikes tip them over the edge’.

But Dr Amy Khor, an MP for Hong Kah GRC and mayor of the South West District, said: ‘We cannot shield our residents from rising costs, which arise from world events and markets.’

She added: ‘Much of it is imported inflation. But our assurance is that there is help if people need it.’