The message is loud and clear: Consume less energy!
Yesterday's Singapore 2017 budget announcement contained the proposal of a new carbon tax to start in 2019. According to the Bloomberg report above the tax is proposed to be levied on the 30 to 40 biggest producers of greenhouse gasses in Singapore at a rate of S$10 to S$20 per ton of carbon dioxide emission.
What does this mean?
The above graphic is sourced from Singapore Energy Market Authority's "Singapore Energy Market Statistics 2016". The Grid Emission Factor shows that every kWh generated and distributed through the grid in Singapore produces 0.4313 kg of CO2.
S$ 20 per tonne of CO2 would add S$ 0.0086 per kWh and we can safely expect that this cost with some additional margin will be passed on to the consumers. On current retail rates of S$ 0.20 per kWh, this is an increase of 4.3%. For industrial customers with rates as low as S$ 0.13 per kWh, this could mean 6.6% increase.
With the looming rise in energy prices, inflation potentially picking up and government action to increase the cost of energy, it is a perfect time to think about and implement measures to reduce consumption sustainably.