Are Singaporeans paying the highest electricity prices in the world?

By: Leong Sze Hian

I refer to “Electricity charges to go up by 5.6% from January to March 2017” (Straits Times, Dec 30) – “The electricity tariff for January to March will be 20.20 cents per kwh, up from 19.13 cents now, SP Services announced today. The 20.20 cents including 7 per cent GST is 21.61 cents.

HDB 4-room average monthly electricity bill to rise to $81.18

With the increase, the average monthly electricity bill for families living in a four-room Housing Board flat is expected to rise by $4.30, from $76.88 to $81.18.”

4th highest among 18 countries ranking?

According to “Cost Of Electricity By Country – Comparison of average electricity prices in select countries” (worldatlas.com – “last modified on September 19, 2016) – Singapore’s electricity tariff at 14.90 (S$21.61 divided by 1.45) U.S. dollar cents per kilowatt hour, would put it 4th most expensive among the 18 countries.

Electricity.jpg

Adjust for PPP – even higher in the 18 countries ranking?

If we adjust for Purchasing Power Parity (PPP) – are we even higher up in the ranking table? Are we one of the most expensive among developed countries in the world?

$1.4b profits?

In this connection, according to the annual reports of Singapore Power and Singapore PowerAssets for 2015/2016 – their combined profits for the year was $1.3766 billion. And we have not even included the profits of the power generation companies!

Paying through our nose?

Is there something not very right with our electricity system, which may make Singaporeans pay one of the highest charges for electricity among developed countries in the world, after adjusting for purchasing power parity (ppp) and relative wages?

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