Written reply to PQ on price of electricity and OECD averages

Question :

Mr Leon Perera: To ask the Minister for Trade and Industry (Industry) how does the price of electricity for (i) homes and (ii) businesses compare to the OECD average in each year from 2011 to 2015.

Written reply:

1.Between 2011 to 2015, Singapore’s regulated electricity tariffs were on average 23% higher than the OECD’s average retail electricity costs.    

2.I would point out that such a comparison is of limited value because the OECD average includes a wide range of countries.  They vary in terms of energy policy with some subsidising certain forms of electricity production (e.g. in Germany, the US, and Spain).  We do not subsidise electricity generation or consumption.  The fuel mix is also varied among OECD countries with some having access to coal, nuclear energy, and renewables like hydropower.  In contrast, 95% of electricity generation in Singapore uses natural gas imported at global prices.  A comparison of average end-use prices for industrial users is even more challenging because, as observed by the International Energy Agency, industrial consumers can purchase electricity through private contracts instead of the regulated market, with variable and often confidential pricing arrangements.

3.As an energy importer and price taker, Singapore cannot be insulated from movements in the global energy market.  Our aim is to foster a competitive energy market for the benefit of all consumers.