Singapore Electricity tariffs up Why?

Electricity tariffs up 6.5% from April - Singapore

Today 1th April 2011 Electricity tariffs Singapore now up to 6.5% Why?

The increase was partially offset by SP Services' lower cost of transporting electricity through the power grid as a result of an annual review - from 4.92 cents per kWh, to 4.78 cents per kWh. This will apply for at least a year.

The surge in oil prices in recent months will push electricity prices here to their highest in two-and-a-half years: From Friday, power tariffs between April and June will increase by 6.5 per cent from the first quarter to hit 25.58 cents per kilowatt hour

This increase will cost the average household in a four-room flat an extra S$4.85 monthly.

Accountant G T Kee, 57, described the 6.5-per-cent increase in electricity prices as "no joke". Mdm Kee said her household of five spends S$300 to S$400 each month on electricity. This means the new power prices will cost her family about S$20 more monthly. She added that her family might become more conscious about switching off lights that are not in use.

The heftier electricity bills would add to households' concerns on the rising cost of living, which is expected to be a hot-button issue in the coming General Election.

Yesterday, the Ministry of Finance said that next month, U-Save rebates ranging from S$170 to S$220 will be given to Singaporean HDB households. One- to four-room flat dwellers will get a month's rebate on their Service and Conservancy (S&C) charges, while those in larger flats will get half a month's worth.

In all, about 800,000 Singaporean HDB households can expect to receive about S$163 million worth of U-Save rebates and S$31 million worth of S&C charges next month.

Another tranche of U-Save rebates will be distributed to households in July, and S&C charges rebates will be given in June, September and December for most households. The total U-Save rebates for this year will range from S$235 to S$360. Households will also enjoy one- to three-months' rebates on S&C charges this year. CIMB regional economist Song Seng Wun told TODAY that oil prices are likely to stay high for the rest of the year unless uncertainty in the Middle East and North Africa ebbs.

Singapore Electricity tariffs up Why?