Dear readers, it was announced that the Singapore Household electricity tariff will increase for 1st quarter next year (2024).
Below are details of upcoming, present and recent household electricity tariffs, before GST:
Q1 2024: 29.89 cents/kWh
Q4 2023: 28.70 cents/kWh
Q3 2023: 27.74 cents/kWh
Q2 2023: 27.43 cents/kWh
Q1 2023: 28.95 cents/kWh
As we note from the above, the household electricity tariffs have been on an increase since Q2 this year. So what is the irony of the increase for me?
Well, I have bought an electricity plan from a commercial player on the back of a liberalising electricity markets some years back. Then, there were so many players offering different electricity packages that are lower than Singapore Power’s tariffs. As many of us know, the vibrant electricity market here has since become history as a number of electricity market players exited the commercial electricity scene due to rising costs.
I have been on the commercial electricity package for some years now, specifically on a fixed price package. In recent years, electricity prices from Singapore Power have become lower and I found myself on a ridiculous commercial electricity contract since the fixed price I have signed on resulted in me paying prices higher than Singapore Power’s tariffs. This is an irony.
With the increase of Singapore Power’s household electricity tariffs to 29.89 cents/kWh, before GST, finally, the contractual prices I am paying will be at last lower than Singapore Power’s. But again, it is an irony, since I am on the last mile of my contract and any savings will more than be offset by the higher prices I am paying under this commercial electricity package.
I will just sign on Singapore Power package and pay market rates when my current commercial contract ends.