An individual company or group often supplies the electricity, and another authority regulates it. The group decides the prices, which are then reviewed by the head every three months to ensure that the fees represent the actual cost of electricity. The electricity tariff Singapore is calculated based on two main components, the fuel, and the non-fuel.
Fuel cost
This includes the price of natural gas, which is often imported, and the oil prices. These prices fluctuate based on the global market. It is calculated using the average of a large number of expenses. These prices represent the cost of natural gas daily for two and a half months within the three months. This allows the prices not to escalate too much and reflects the global market values.
Non-fuel cost
This is the cost required for the physical work and everything other than the cost of the fuel. It includes:
- Power generation: This includes all the money required to generate power in the stations and all the workforce that is needed. It also covers the capital cost of these stations and the maintenance fee.
- Network cost: This is the amount required to transport electricity from the generating sites to the households.
- Market support services: This is the money required for maintaining various records and data management, checking the meters, and other works such as developing marketing strategies for the company.
- Power system operation fee: This fee may be included in the power generation fee or may be charged separately for the operation of these massive power systems.
