SINGAPORE: Singapore could see "potentially sharper increases" in electricity and town gas after the second quarter due to the situation in the Middle East, the Energy Market Authority (EMA) said on Tuesday (Mar 31).
Singapore relies heavily on imported energy, with about 95 per cent of its electricity generated using imported natural gas, which is also the main feedstock for the production of town gas, EMA said in a media factsheet.
The authority noted that the ongoing Middle East conflict has strained global fuel supply chains, causing oil and natural gas prices to increase significantly, with fuel prices set to "remain elevated in the foreseeable future".
An increase in the cost of natural gas would therefore lead to an increase in the prices of electricity and town gas for all consumers in Singapore, it said.
Electricity and gas tariffs are only "partially affected by the rise in fuel prices" in the second quarter because the regulated electricity and town gas tariffs for each quarter are determined based on the average fuel costs in the first 2.5 months of the preceding quarter, said EMA.
This means the electricity and town gas tariffs for the April to June period are based on fuel prices from January to mid-March, it added.
The authority said that prices of natural gas started to climb only after Feb 28.
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Singapore relies heavily on imported energy, with about 95 per cent of its electricity generated using imported natural gas, which is also the main feedstock for the production of town gas, EMA said in a media factsheet.
The authority noted that the ongoing Middle East conflict has strained global fuel supply chains, causing oil and natural gas prices to increase significantly, with fuel prices set to "remain elevated in the foreseeable future".
An increase in the cost of natural gas would therefore lead to an increase in the prices of electricity and town gas for all consumers in Singapore, it said.
ELECTRICITY, GAS TARIFFS "PARTIALLY AFFECTED" IN Q2
Electricity and gas tariffs are only "partially affected by the rise in fuel prices" in the second quarter because the regulated electricity and town gas tariffs for each quarter are determined based on the average fuel costs in the first 2.5 months of the preceding quarter, said EMA.
This means the electricity and town gas tariffs for the April to June period are based on fuel prices from January to mid-March, it added.
The authority said that prices of natural gas started to climb only after Feb 28.
Continue reading...