Singapore’s electricity tariffs have increased by approximately 3% since the last quarter. In layman terms, that explains why electricity retailers’ rates have also increased.
Was that a good enough explanation for you? Anyway, let’s dive deeper into understanding the situation behind all that!
Liquified Natural Gas (LNG) Prices Soar
In less than a year and a half, LNG prices went from record lows to record highs, with the market first reeling from the impacts of the pandemic, and now struggling to keep pace with the global economic recovery. The shortage of coal due to the recent power curbs and outages in China and high gas prices in Europe were part of the contributing factor to the surge of LNG prices.
Singapore Electricity Market
LNG plays a big part in Singapore power generation, approximately 95% of Singapore's electricity is generated using natural gas. The global situation impacts Singapore’s energy needs directly as we receive almost a 100% of our resources externally. All in all, Singapore’s electricity prices are subjected to global price movements. This unfortunate situation in turn has led to a few independent electricity retailers exiting the industry.
What does this mean for you?
During seasons like these where prices have gone through the roof, it is beneficial to lock in the best rates before that happens. If you’ve already made the switch months ago, good for you. If you haven’t done so, it’s time to consider locking in your electricity cost at a fixed price plan as you’ll never know if gas prices and tariff may go even higher next year.
Now that electricity rates have already increased, you may still tackle them with bill rebates from the list of promotions offered by PacificLight. Like we always say, “skip monitoring of the fluctuating rates with the Savvy Saver 24 plan.”
Disclaimer: Having a fixed price plan locked in does not necessarily mean you’ll pay lower than the regulated tariff all the time. This is where selecting the right types of plans comes into play. Follow this article where we run through the type of plans you may benefit from.
Psst… Tackle the high electricity cost with some of our ongoing promos here!
