Electricity Costs

I buy electricity on the open market in Singapore. So when the bill came for the month of August, it looked pretty crazy. I have never seen my averaged cost of electricity actually exceeding the retail package pricing.

Of course I’ve allowed myself to be subject to the volatility but I wonder how often people really bother to understand or check their cost of electricity. For most part they might be using the overall cost as a proxy for consumption since they usually assume the electricity tariffs to be fixed. Well, that’s if you’re on a retail package. And even then it is fixed only for a certain time period.

I begin to wonder if there were any events and outages in the power system in August that resulted in some of those crazy rates. And with gas shortages in the world, things might be changing in the market quite a bit. People were even warned of the rising prices on the papers.

And this makes understanding the energy transition even more crucial for ordinary people like you and I. Getting a clearer view of the options for energy security for Singapore, greater transparency of the plans by the government, how far the market will be playing a role in determining the energy mix vis-a-vis policies to ensure a low carbon energy future.

Besides how much our electricity cost us, we should be also wondering how much it is costing our future and the earth.