Before the introduction of the Open Electricity Market (OEM), households and businesses in Singapore had only SP Group to buy electricity from at a quarterly-revised tariff.

Now, Singaporeans residing in areas where the OEM has rolled out to can purchase electricity from a list of 13 retailers – charged at different rates from the prevailing tariff.

How are Residential Tariffs Determined?

Residential electricity tariffs are set by the SP Group and are regulated by the Energy Market Authority. The prices are set so as to reflect the actual cost of electricity. The tariff comprises of two elements:

1. Fuel Cost: This element of tariffs is equivalent to the average cost of natural gas in the previous quarter. For example, the tariffs for the months of April-June will be determined by the average natural gas prices in the months of January-March.

2. Non-fuel Cost: This is composed of various costs which …