How to Know If There Is an Increase in Electricity Rate in Singapore
If you are concerned about the increase in electricity rate in Singapore, you must know that it can also drop. This is applicable for both the regulated and the unregulated tariff. For the unregulated tariff, you may lock in a contract with an independent supplier. What you should keep in mind is that these tariffs are fixed for a certain period during your contract which can range from 6 months to 24 months.
For the regulated tariff, you can see an increase in electricity rate in Singapore but the opposite can happen as well. This price fluctuation happens in all countries and it is conditioned by several factors, out of which, none can be controlled, even by the electricity supplier.
Why does the electricity tariff fluctuate?
The simple reason why the electricity rate in Singapore goes up and down is because of costs. It would be wrong to assume that suppliers are increasing the price to increase their margins. Usually, their margins stay the same. They just adjust the pricing of electricity based on how much it costs them to sell it to you. Electricity suppliers do not produce the energy themselves. They instead buy it from electricity production companies and then sell it to you. In simple words they are resellers. If the electricity they buy gets cheaper or more expensive, they will adjust the tariff accordingly.
Looking beyond the price at which electricity suppliers buy their electricity, it is important to understand why the companies that generate electricity cannot supply it at the same price rate. This comes down to how electricity is produced in Singapore.
At present day, the main way electricity is produced in Singapore is using natural gas. A good portion of the natural gas used is imported. The tariffs can fluctuate which in turn also caused the electricity rates to fluctuate.
Even if there was more energy produced from renewable sources, the prices would still fluctuate. Solar energy is the only cost-effective renewable energy source in Singapore and even that is influenced by the number of sunny days.
How do you know if the electricity rate changed?
If you are in a contract with a fixed tariff, you should know when that fixed tariff period expires as it may increase or decrease. If you are getting the regulated tariff, then you should check it at the end of every quarter. On the last day of each quarter, the tariff for the next quarter, or the next 3 months is announced via various channels such as press releases. Usually, these press releases include a justification if there is an increase in electricity rate in Singapore or if the price drops.
What you should know is that the electricity tariff is applicable only for the period that is stated in the announcement. In the unlikely event that the tariff remains the same, there will still be a communication from the electricity supplier to inform customers about the new tariff for the next three months. You should also keep an eye on the regulated tariff as you can use it as a reference if you are planning to switch to a different electricity supplier and check if they are offering a better rate.