CNA Explains: How electricity prices are calculated in Singapore

Another 36.9 per cent are on retail price plans offered by OEM retailers.

Singapore’s electricity market represents the region’s closest fully liberalised market, said Mr David Chew, a senior consultant at Rystad Energy.

The sector is competitive, with retailers buying electricity in bulk from the market and competing for end-user customer demand, he added.

Unlike those on the regulated tariff, who see rate changes every quarter, households buying electricity from retailers can subscribe to fixed-price plans – which offer a fixed rate for a 12- or 24-month contract – or discounts off the regulated tariff.

Retailers in the OEM are either the retail arm of power generators or independent retailers that buy electricity in bulk from the wholesale market. Prices on the wholesale market fluctuate every 30 minutes, depending on demand and supply.

Conditions in the wholesale market play a key role in determining the business strategies of the latter group of retailers. The ability to hedge against fluctuations is another important factor.

How do tariffs affect prices in the Open Electricity Market?

Retailers typically benchmark their rates against the tariff rate, charging just below it to attract customers, Dr David Broadstock, a partner at energy consultancy The Lantau Group, previously told CNA.

Prices have edged up since the war broke out. On Feb 27, a day before the war began, fixed-price retail plans for residences ranged from 22.83 to 26.30 cents per kWh, before GST.  

As of Monday (Apr 13), prices ranged from 26.42 to 27.61 cents per kWh before GST, data from the OEM’s price comparison website showed.

This represents an increase of between 1.2 and 14.8 per cent, depending on the plan and retailer.