SP Group has recently announced that with effect from 1 April 2023, there will be an increase in network charges to deliver electricity through the power grid has been deferred since 2020 to support businesses in managing costs during the pandemic.
The Use-of-System (UOS) Charges, which is payable to SP PowerAssets is to recover the cost of transporting electricity through the national power grid. Note that the charges differ according to the voltage at which a consumer receives the supply.
For customers on ultra-high, extra high and high tension voltage, network charges will be increased in phases over the next 4 quarters from 1 April 2023 until 31 March 2024.
For customers on low tension voltage, the network charges will increase only on 1 April 2023 and will remain unchanged until 31 March 2024. More details can be found here.
TRANSMISSION LOSS FACTORS (TLF)
Transmission Loss Factors are scaling factors applied at the metering point to account for network and transformer losses.
More details can be found here.
CARBON TAX
In a bid to move towards Net-Zero Emission by 2050, Singapore introduced Carbon Tax in 2019 as a mitigation measure to support the transition to a low-carbon economy and incentivise businesses to be accountable for their emissions and look for low-carbon solutions.
From 2019 to 2023, the carbon tax is priced at S$5 per tonne of greenhouse gas emissions (tCO2e) to provide a transitional period for emitters to adjust. The carbon tax will progressively increase to S$25/tCO2e from 2024, S$45/tCO2e from 2026 and eventually result in rates of between S$50/tCO2e and S$80/tCO2e by 2030.
For more information on carbon tax, you may refer to NCCS website.
What does it mean for our electricity consumers?
The carbon tax imposed on power generation plants in the generation of electricity for users, will be passed through to the electricity consumers. The carbon tax will be calculated based on the following formula:
Electricity Consumed (kWh) x GEF (kgCO2/kWh)* x Carbon Tax Rate ($/tCO2e)+
= 0.4168 kg CO2/kWh x S$25/tCO2e x 1,000 kWh
= S$10.42 (Effective from 1 January 2024 onwards)
*GEF-OM (kg CO2/kWh) is Grid Emission Factor-Operating Margin, a published figure by the Energy Market Authority (EMA) on a yearly basis. The GEF-OM in 2024 is 0.4168. The EMA will update the GEF around July.
+Carbon Tax Rate is S$25/tCO2e as announced by the Singapore government until its revision in 2024.
