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SINGAPORE: Singapore households will pay 25 per cent less for their electricity bills from January to March next year. The Energy Market Authority (EMA) said because of the global downturn, fuel oil prices have fallen by as much as 40 per cent.
This is the first fall in electricity tariffs since April 2007 and the new lower tariff is certainly bringing back smiles.
"We are thinking of ways to reduce the cost of electricity. We might do away with the cooler and we may not keep the fish tank anymore," said a man in the street.
Singapore's electricity tariff is calculated using a formula. The tariff which is pegged to fuel oil prices is also reviewed every three months.
In July this year, a barrel of fuel oil was US$115. It fell to US$63 in October.
Fuel oil prices only account for 50 per cent in determining the final tariff. Power generation, delivery and other fees account for the rest.
Due to the inherent time lag for Singapore's electricity tariff formula to take effect, the fall in October's fuel oil prices and its impact on electricity bills will only be reflected next year.
Households and small businesses will pay 24.54 cents per kilowatt hour.
Lawrence Wong, chief executive (designate), EMA, said: "Energy market will still be volatile as far as EMA is concerned and we will minimise the impact of that volatility on households.
But the reality is that we will have no control of global oil movement in the energy market and no matter how we fine-tune the tariff formula, I don't think we will completely shield or insulate households from price volatility movement."
EMA said there's no guarantee that electricity tariffs will not go up after March 2009.
It said that the best thing for Singaporeans to do is to practise energy saving habits such as switching off appliances when not in use. -CNA/vm
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