Electricity: One of the highest in the world?

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860,000 HDB households to receive GST Voucher – U-Save Rebate

I refer to the article “860,000 HDB Households to Receive GST Voucher – U-Save Rebate in January 2017” (Straits Times, Jan 1).

$45 to $65 vouchers

It states that “This month, eligible households will receive vouchers of up to $65, depending on their HDB flat type.”

Electricity tariff up 5.6%

In this connection, according to the article “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.

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.”

Including 7% GST is $21.61

The $20.20 cents including 7 per cent GST is $21.61.

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 at number 4 (most expensive) among the 18 countries.

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?

Adjust for PPP – one of the highest among developed countries?

Are we one of the most expensive among developed countries in the world?

Cost Of Electricity By Country

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Rank Country U.S. dollar cents per kilowatt hour
1 Italy 21.01
2 Germany 19.21
3 UK 15.40
4 Portugal 13.84
5 Spain 13.64
6 Belgium 12.68
7 Slovakia 12.55
8 France 10.74
9 Czech Republic 10.47
10 Poland 10.46
11 Austria 10.44
12 Netherlands 10.08
13 U.S. 10.00
14 Australia 9.71
15 South Africa 8.97
16 Finland 8.59
17 Canada 8.11
18 Sweden 7.87

Cheaper electricity – no need U-Save rebates?

If our electricity tariff and overall utilities bills are lower – perhaps we may be even better off, without having the need for U-Save rebates?

$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.

Power generation companies’ profits?

 

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?

Leong Sze Hian

About the Author

Leong
Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.