Singaporeans' bills to go up 21%

Source StrauitsTimes

ELECTRICITY bills will go up about 21 per cent tomorrow, the highest one-time increase in about seven years, according to the Energy Market Authority (EMA).
Those living in three-room Housing Board flats, for example, will see their average monthly power bills rise by $14, while five-roomers will pay $23 more a month.

Over the year, three-roomers will see their average utilities bill for power, water, gas and refuse collection rise by $223.

But there is relief for them. The Government's U-Save or Utilities-Save rebates of $310 for three-roomers and $330 for those in smaller flats - given in three instalments in January, July and November - will more than cover the increase.

Households in larger public housing apartments will have to pay for some of the increase out of their own pockets as the rebates, provided on a sliding scale, are meant to help the lower- and middle- income families.

Electricity tariffs, which are reviewed every quarter, have gone up for five straight quarters since July last year, because of rising oil prices.

With the latest round of increases, electricity tariffs go up from about 25 cents per kilowatt-hour to just over 30 cents.

EMA, the electricity and gas industry regulator, said that since 2004, electricity tariffs have been pegged to the price of fuel oil delivered to power generation companies for the next three months.

Known as 'forward fuel oil' prices, it is less volatile than the 'spot oil' prices quoted for immediate deliveries, explained EMA chief executive Khoo Chin Hean.

Petrol and diesel pump prices, which have come down in recent weeks, are also not an indicator of how much power generation companies have to pay, he added.

Mr Khoo said the forward fuel oil prices for the next three months is $155.14 per barrel, up 38 per cent from $112.35 per barrel for the current quarter.

But he held out hope that if oil prices continue to soften in the coming months, electricity tariffs could come down in the next quarterly revision, due in January.

Households can also do their part to trim their bills.

The scope for savings is high considering that power consumption patterns show that 40 per cent of households, from one-room flats to landed properties, use more than the monthly average, said Mr Khoo.

Private school lecturer Sally Chew, 47, and her family of five will see their monthly bill of $290 going up to about $350 with the new tariffs.

To keep the bill for their five-room flat below $300, 'we will switch to the fan instead of running the two air-conditioners the whole night as we do now'.

Some families have switched to a prepaid metering scheme after they had their power supply cut off or were in danger of having the supply disconnected.

Up to June this year, 13,700 households are on the Payu, or Pay As You Use, scheme which replaces conventional power meters with meters that work only if an account has sufficient credit in it.

Community development councils also offer vouchers to needy residents who have problems keeping up with payments.

Given that social workers have found about 35 per cent of those who have trouble paying their electricity bills live in four- and five-room flats, one MP suggested more flexibility in deciding who gets help, instead of looking only at housing type.

Mr Charles Chong (Pasir Ris-Punggol GRC) said: 'I have residents living in five-room flats coming to me for help, because they have lost the breadwinner. There are also retirees in private property living off their savings. Any increase will have an impact on them.'