What is the Regulated Tariff and how does SP Group calculate it?
The electricity tariff set by SP Group is reviewed every quarter, and is regulated by the Energy Market Authority (“EMA”) to reflect the actual cost of electricity.
This tariff covers two key components – fuel cost and non-fuel cost.
The fuel cost, or cost of imported natural gas, is based on the average natural gas price in the previous three months. This helps to smooth out any large swings in the oil markets, which the gas price is tagged to. For households, this means electricity tariffs are reflective of the current market conditions.
The non-fuel cost reflects the cost of generating and delivering electricity to households. It includes:
Electricity Generation Cost: This mainly covers the costs of operating the electricity plants, such as the manpower and maintenance costs, as well as the capital costs of the plants.
Transmission Charge: This recovers the cost of transporting electricity through the electricity grid.
Market Support Service (“MSS”) Fee: This recovers the costs of billing and meter reading.
Power System Operation and Market Administration Fee: These fees recover the costs of operating the power system and managing the wholesale electricity market.
Click here for more information.
What is the Regulated Tariff and how does SP Group calculate it?
The electricity tariff set by SP Group is reviewed every quarter, and is regulated by the Energy Market Authority (“EMA”) to reflect the actual cost of electricity.
This tariff covers two key components – fuel cost and non-fuel cost.
The fuel cost, or cost of imported natural gas, is based on the average natural gas price in the previous three months. This helps to smooth out any large swings in the oil markets, which the gas price is tagged to. For households, this means electricity tariffs are reflective of the current market conditions.
The non-fuel cost reflects the cost of generating and delivering electricity to households. It includes:
Electricity Generation Cost: This mainly covers the costs of operating the electricity plants, such as the manpower and maintenance costs, as well as the capital costs of the plants.
Transmission Charge: This recovers the cost of transporting electricity through the electricity grid.
Market Support Service (“MSS”) Fee: This recovers the costs of billing and meter reading.
Power System Operation and Market Administration Fee: These fees recover the costs of operating the power system and managing the wholesale electricity market.
Click here for more information.