All You Need To Know About Electricity Tariffs


Over the last few years, electricity tariffs Singapore have been on the rise. This has led to an increase in the cost of living, as well as a higher burden on businesses. To offset these costs, many households and businesses are looking for ways to conserve energy. Fortunately, there are several simple steps that everyone can take to reduce their electricity usage.

What is Electricity Tariff? 

The electricity tariff is the price a customer pays for electricity. It is usually expressed in cents per kilowatt-hour (¢/kWh). Tariffs vary between states and between distribution networks within states.

The tariff comprises two parts: a usage charge, which is a charge for each kilowatt-hour (kWh) of electricity used, and a supply charge, which is a flat monthly charge for being connected to the electricity network.

How Does The Electricity Tariff Work? 

Every month, your electricity bill arrives with a confusing mix of numbers and letters. You know you’re being charged for electricity, but what does it all mean?

The tariff is the price set for each unit of electricity that your supplier charges you. It’s made up of several different elements: the standing charge, the cost of energy, and any taxes or levies that are applied.

The standing charge is a flat rate that you pay each month, whether you use any electricity or not. The cost of energy is the price per unit that your supplier charges for the electricity you use.

Types of Tariffs Available 

Electricity tariffs are the prices you pay for using electricity. You might have heard of some of these before, but it’s good to have a refresher.

There are six types of electricity tariffs available in most countries:

  • Standard tariff
  • Discount tariff
  • Economy 7 tariff
  • Time-of-use tariff
  • Critical peak tariff
  • Stand-by or reserve