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1.
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How is the electricity tariff determined?
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There are two key components to the cost of electricity in Singapore: the fuel cost and non-fuel cost. The fuel cost, which includes the cost of imported natural gas, is pegged to the price of fuel oil. The non-fuel cost, which reflects the cost of generating and delivering electricity to our homes, has remained largely unchanged over the past few years.
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2.
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Why are electricity tariffs pegged to oil prices when Singapore uses mainly natural gas to generate electricity?
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While Singapore's electricity is mainly generated from imported natural gas, the prices of natural gas (which are determined by commercial contracts) are indexed to fuel oil prices. This is the market practice in Asia for natural gas contracts. Hence, if the prices of fuel oil increase by 10%, natural gas prices would also increase by 10%. This is why the fuel cost component of our electricity tariff is affected by movements in fuel oil prices.
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3.
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Why can’t the government help by reducing electricity prices instead of giving U-Save rebates?
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The Government recognises that there are households which may face difficulties coping with the rising cost of energy, and is ready to help them. Our approach is to price energy right. This ensures that consumers take into consideration the true cost of energy, make efficient use of a scarce resource, and avoid the wasteful consumption associated with subsidies. Rather than subsidising electricity consumption directly, the Government has chosen to provide assistance to HDB households through the use of rebates, with higher amounts of rebates going to lower-income households.
This year, about $250 million in utilities rebates (U-Save rebates) have been given to help Singaporeans cope with higher energy prices. The total amount rebates received by Singaporean households in 2011 will in fact offset more than 4 months of utilities bills for families living in 1- and 2-room flats; those living in all other HDB flats will benefit from at least 1 month’s offset of their utilities bills. Since 2007, the Government has provided close to $800 million of such rebates, for the benefit of 800,000 households.
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4.
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If electricity prices are pegged to fuel oil prices why is it that the increase does not correspond with the movement in fuel oil prices?
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The electricity tariff is set every three months, based on the average forward fuel oil price over the past three months. This means that if average fuel oil price from July to September decreases, we will see a corresponding dip in electricity prices for the next quarter from October to December. Similarly, the tariff for October to December will be adjusted upwards if the average fuel oil price increases during the period from July to September.
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5.
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Is privatisation / liberalisation of the electricity to blame for the electricity tariff increases?
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No, the liberalisation of the electricity market has not increased the electricity tariff. On the contrary, it has introduced competition into the market and helped to improve efficiency and drive down prices. For example, power generating companies have switched from oil-fired steam plants to more cost efficient ways of generating electricity such as gas-fired combined cycle gas turbines (CCGT). Had we continued to use steam plants, the electricity tariff today would be about 15 per cent higher, reflecting the relative efficiency of the CCGT turbines.
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6.
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What is the average monthly electricity and gas consumption for the various household types?
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The average monthly electricity and gas consumption for the various household types can be found on SP Services Ltd website here.
Under Homes (For residential use),
click 'View National Average Household Usage'.
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7.
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How do I apply for an electrical installation licence?
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You are required to appoint a licensed electrical worker (LEW) of appropriate class to take charge of the electrical installation. Your appointed LEW will submit the licence application online using EMA's Services(ELISE) Information e-Licence.
You may check your licence application status here using the application reference number issued during the online submission.
Upon approval of the licence application, your appointed LEW will be notified and he shall print the electrical installation licence and deliver the licence to you within 7 working days from receipt of the notification.
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8.
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When do I need an electrical installation licence?
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You are required to obtain an electrical installation licence when you use or operate an electrical installation of approved load exceeding 45 kilo volt ampere (kVA) for non-domestic purposes.
Electrical installations in premises used for 'hazardous trades', irrespective of their approved loads, are also required to be licensed. Examples are garage for painting motor vehicle, wood-working or saw-milling, petrol stations, paints and petroleum products, and temporary supply where building operations or works of engineering construction are being carried.
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9.
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How is liberalisation of the electricity market implemented in Singapore?
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The liberalisation of Singapore electricity retail market is implemented in 3 phases. The first two phases of retail competition involved the introduction of retail contestability to large industrial and commercial consumers, whose total consumption accounts for about 75% of total electricity sales in Singapore.
There were about 5,000 consumers with an average monthly consumption of 20,000kWh and above who were classified contestable consumers in Phase 1 of the retail market liberalisation. This phase of the retail liberalisation was completed in end Sep 03. Phase 2 retail market liberalisation commenced in Dec 03. It comprised another 5,000 consumers with an average monthly consumption of 10,000kWh and above.
Retail contestability will eventually be introduced to the remaining domestic and small non-domestic consumers (with average consumption less than 10,000kWh per month) under the third phase of retail liberalisation. The number of consumers in the third phase is about 1 million, but in terms of electricity sales, they represent only about 25% of total sales in Singapore. Phase 3 of the retail market liberalisation is currently under study.
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10.
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What are the qualifications required for application of an electrical worker licence?
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There are 3 classes of electrical worker licence, namely: Electrician's Licence, Electrical Technician's Licence and Electrical Engineer's Licence.
Electrician's Licence
An applicant who meets the following requirements may apply for the electrician's licence -
(a) holds a National Technical Certificate which curriculum is relevant to the electrical work which an electrician is authorised to perform or such other qualifications as may be acceptable to the Authority; and
(b) has not less than 2 years' practical experience relevant to the electrical work which an electrician is authorised to perform.
Electrical Technician's Licence
An applicant who meets the following requirements may apply for the electrical technician's licence -
(a) technician diploma majoring in electrical power engineering relevant to the electrical work which an electrical technician is authorised to perform or such other qualifications as may be acceptable to the Authority; and
(b) has not less than 2 years' practical experience relevant to the electrical work which an electrical technician is authorised to perform.
Electrical Engineer's Licence
An applicant who meets the following requirements may apply for an electrical engineer's licence.
(a) is a registered professional engineer in electrical engineering under the Professional Engineers Act (Cap. 253); and
(b) has not less than 2 years' post-graduate experience in electrical power engineering relevant to the electrical work which an electrical engineer is authorised to perform.
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