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.’
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