Singapore : Electricity price increase - 2007Q4

This article belongs to the Singapore inflation watch story arc.

Thanks to Simon Tay for the heads-up :

singaporepower.com.sg (chart) :

For the quarter 1 Oct to 31 Dec 07, the electricity tariffs will be increased by an average 4.29% or 0.86 cents per kWh due to the higher cost of electricity arising from higher fuel oil prices.

For the period 1 Oct to 31 Dec 07, tariffs are pegged to a higher forward fuel oil price of US$58.06 or S$87.46 per barrel. The forward fuel oil price is 12.91% higher than that of US$51.42 or S$77.45 per barrel for the current quarter. The electricity tariff is reviewed quarterly and adjusted accordingly in line with the fluctuation in the cost of electricity.

- For residential electricity, the new rate will be 21.38 cents per KWh compared to the current rate of 20.52 cents per KWh. No surprise to peakoilers, really. We've been up and down around the $75 level for this past quarter (2007Q3), and it was about $65 the quarter before that (2007Q2). Let's see if that hits $85 for this coming quarter. That will happen if NYMEX crude bounces between the $80 to $90 levels.

If you're talking inflation, that's a 4.19% increase over a quarter. But before you yell at gov.sg, consider that the crude oil price has gone up roughly 15% over the same period, which more or less tallies with the benchmark they use, the forward fuel oil price, which as they said is up 12.91%.

Side note : You know what, somehow I don't think gov.sg will want to do this for much longer - i.e. dampening the price movements for the benefit of the people.

Updated :

1. Singapore electricity rates to increase 4.98% from Jul 2008
2. Singapore : electricity tariffs to increase April 2008 on rising oil prices

(2007-09-26 12:57:31 SGT) [Energy] Permalink