Come the first quarter of 2016, electricity tariffs will fall by 4.2% according to SP Services. This decline is a result of the falling prices of natural gas which fell by 8.9% in the last quarter.
The electricity tariffs consists of 4 components, namely: energy cost (which declined 8.9% in this quarter), network cost, market support service fee and administration and power system operation fee. Therefore, it is assumed that the discrepancy between the two declines of the electricity tariffs actually signified an increase of 4.7% in the 3 other components.
While Singaporeans may get to enjoy a net decrease of 4.2% in their electricity tariffs, the question remains what caused the spike in annual fees for network cost, service and administration.