Following to the announcement on the rise of electricity tariff by SP Group on 30 Jun 2022, the tariff was said to be increased by an average of 8.1 per cent for the July to September period this year, compared with the previous quarter. Hence, the electricity tariff for households will increase from 27.94 cents previous quarter to 30.17 cents per kWh (both excluding GST) in third quarter.
According to SP Group, they review and adjust the electricity tariffs every quarter based on guidelines set by the Energy Market Authority (EMA) to reflect the changes in fuel cost and power generation. This has been the sixth consecutive quarter of increase. This increase was inevitable due to higher energy cost driven by rising global gas and oil prices exacerbated by the conflict in Ukraine. The war had caused a series of disruptions such as global supply chain disruptions, reduction in supply, tightening sanctions, or other trade restrictions which ultimately affecting the commodity prices.
Singapore begins importing renewable energy from Laos through Thailand, Malaysia
In an effort towards Singapore’s sustainability goals and cut down its reliance on fossil fuels for electricity, the country started importing renewable energy from Laos through Thailand and Malaysia on 23 Jun 2022, after an initial two-year power purchase agreement was signed between Keppel Electric and Laos' state-owned Electricite du Laos (EDL).
At present, around 95% of Singapore’s electricity output is generated from natural gas. The country plans to leverage solar power, regional power grids, and other low-carbon alternatives such as carbon capture, utilization, and storage (CCUS) technologies to realize its climate commitment to net-zero emissions target by 2050.
The commencement of renewal electricity imports from Laos marks a significant milestone in promoting supply diversification and strengthen grid stability for the region as a whole, said by EMA chief executive Ngiam Shih Chun. Keppel Electric is the first entity to be issued an electricity importer licence by EMA but the authority has also announced plans to import electricity from other sources.
By promoting supply diversification, whether can stabilise its electricity prices after the deployment of renewable energy will still need to be observed.
References:
https://www.channelnewsasia.com/singapore/sp-groups-electricity-tariffs-go-81-third-quarter-2782531
https://www.nccs.gov.sg/singapores-climate-action/singapore-approach-to-alternative-energy/
