Fixed-price residential plans now range between 28.8 and 29.18 Singapore dollar cents (US$0.22–0.23) per kWh, an increase of between 1.2% and 11.3% compared to Feb. 27, a day before the strikes on Iran started, according to the Open Electricity Market’s price comparison website.
Siem Thiima, a platform supply vessel powered by LNG and battery, is seen along the anchorage in Singapore on March 9, 2022. Photo by AFP |
A 11% increase is typically equivalent to SGD10.42 ($8.13) in electricity bills for a typical four-room flat consuming 358 kWh monthly, according to Channel News Asia.
For a typical four-room HDB flat consuming 357 kWh monthly, this equates to an additional S$10.42 (US$8.13) in electricity bills, inclusive of goods and services tax.
Prices of Senoko Energy Supply and PacificLight Energy went up 11.3%, while those of Geneco and Keppel Electric added 4%.
Some other retailers chose to discontinued their discount schemes. Tuas Power Supply, for instance, no longer offered its 10% discount off regulated tariff plan or six-month fixed-price plans as of Friday.
A Tuas Power Supply spokesperson told Channel News Asia that shorter-term plans are more exposed to near-term cost fluctuations and are therefore harder to sustain.
The spokesperson said its new offers are adjusted in line with market fuel costs and that some plans include bill rebates on a “while quantities last” basis.
A Geneco spokesperson said that the company is closely monitoring global developments and working with the Energy Market Authority and industry partners to manage potential volatility.
“Our priority is to ensure that both our commercial and residential customers continue to have access to reliable electricity options while safeguarding the long-term sustainability of our business,” the spokesperson said.
Geneco holds the largest residential market share at 29.6%, followed by Tuas Power Supply (23.9%) and Keppel Electric (21.5%), with Senoko Energy and Sembcorp Power ranking fourth and fifth respectively.
Precautionary steps
Analysts said retailers may be taking precautionary steps amid global uncertainty.
Fuel and power generation account for more than 75% of Singapore’s electricity tariff, said David Chew, senior consultant at Rystad Energy.
The fuel cost component is derived from average daily natural gas prices over the two-and-a-half months preceding each quarter, according to the Energy Market Authority.
About 95% of Singapore’s electricity is generated from natural gas, either piped from neighbouring countries or imported as liquefied natural gas.
Chew said that while mitigation measures such as fuel stockpiles exist, the ongoing Middle East conflict still exposes the market to rising fuel costs that will feed into electricity prices.
“The impact on global oil and gas flows is unprecedented, and there is no established playbook for retailers to follow. As a result, decision-making is increasingly forward-looking, with retailers needing to factor in downside scenarios and prepare for further deterioration.
David Broadstock, partner at energy consultancy The Lantau Group, said retailers are unlikely to be seeking excess profits, but are instead buffering against higher costs.
“No company wants to naturally increase their price by a large quantity because it’s just discouraging for customers. And that tells you it’s strategically important for them to do so,” he said.
The government has already signaled that electricity prices are likely to rise. On March 4, the Energy Market Authority warned that some consumers may face higher prices when renewing retail contracts.
Minister-in-charge of Energy and Science and Technology Tan See Leng said that around half of the city-state’s gas is piped to Singapore from the region and is therefore “unaffected,” as reported by The Business Times.
However, he noted that authorities will mitigate spikes and stand ready to act should conditions deteriorate.
Singapore also maintains stockpiles of liquefied natural gas and diesel that can last for several months, he added.
Amid ongoing price volatility, retailer Geneco has reported a rise in customers opting for fixed-price plans.
Fixed-price plans provide peace of mind by allowing households to lock in a stable electricity rate and better manage their monthly bills, a spokesperson said.
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