The electricity tariff is mainly defined as the price at which the electrical energy is being sold to the consumer. The tariff must include the total amount of production as well as supplying the electrical energy. This also includes the profit to the power company. Some of the important facts about the electricity tariff singapore have been discussed in this article.
The factors affecting the electricity tariff in Singapor
Below are some of the important factors affecting the electricity tariff:
- Singapore is a country having limited sources of natural resources. Singapore mainly imports almost all its energy needs. The prices the consumer needs to pay for electricity are mainly determined by some of the external factors outside of their control. 95% of the electricity is mainly generated from the
- In Singapore, natural gas is not the prime source to generate electricity. There are some other choices like coal and oil to generate heat, which is mainly used to produce steam for generating electricity. Such fuels are mainly pollutive. One can use renewable sources of energy to produce electricity in a relatively non-pollutive way. Solar energy is the most practical renewable energy option for Singapore.
The electricity tariff in Singapore mainly consists of four main components. This includes the energy costs which are mainly paid to the generation companies, market support services fees paid to SP Group, network costs, and the market administration fees being paid to the energy market company and power system operator.
These are some of the important factors to know about electricity tariffs.