Singapore’s electricity tariff constantly changes depending on the current global oil market conditions. Several components affect the electricity rate at a given time as well. Are you among the many observant folks who want to know what you’re paying for exactly? This article will explain the factors behind the electricity tariff. Keep reading and learn more about PUB Electricity Rate in Singapore.
Electricity Tariffs Briefly Explained
An electricity tariff helps energy suppliers charge consumers for consumption appropriately. This charging method generally covers these costs – electric energy supplied, production cost, and a reasonable extra fee. As one might expect, the tariff you’ll pay depends on how much energy you’ve consumed. When you consume too much energy, you should also expect an increase in your bill.
The Key Factors Behind Electricity Tariffs
Let’s explore the five primary factors that influence how much a consumer would pay for a tariff:
- Maximum demand – the electrical energy cost depends on the plant’s installed capacity. As the maximum capacity increases, so does the installed capacity.
- Load type – a consumer load will fall under any of these three categories – domestic, commercial, or industrial. Industrial load types usually require higher amounts of energy compared to the others.
- Load power factor – this particular factor heavily affects numerous components within the energy industry. Having a low power factor leads to poor regulation and system losses. Since fixing this problem requires the installation of additional equipment, the generation cost increases.
- The required load time – whenever the maximum load becomes insufficient for the maximum demand, opting for an additional plant is likely necessary. Overly high demand leads to more expensive electricity tariffs.
- The amount of utilized energy – utilizing large amounts of electricity for long periods reduces the long-term electrical energy cost.
What Is the PUB Electricity Rate in Singapore?
Now that you understand the specific factors that affect each electricity tariff, you can rest assured that your energy supplier is charging you rightfully. The latest regulated electricity rate in Singapore is 24.13¢/kWh. This rate will remain effective from April 1 to June 30 this year. Spend energy wisely so you can also save money.