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SP Group Waives Tengah Centralised Cooling System Fees Till End-2023 Following Complaints

SP Group Waives Tengah Centralised Cooling System Fees & Reduces Usage Rates

Singapore grid operator SP Group announced on Monday (6 Nov) that it will be waiving its centralised cooling fees for Tengah residents until the end of 2023.

They will also be cutting its usage rates from 1 Jan 2024.

On top of that, homeowners who decide to cancel the system installation will only need to pay half of what SP Group originally quoted.

This follows a series of complaints from residents who encountered issues with their systems.

SP Group waives Tengah centralised cooling system fees after feedback

SP Group announced these new measures in a press release on Monday (6 Nov).

The grid operator said that they were aware of the residents’ feedback, and have been working closely with them to address their concerns.

As a “gesture of goodwill”, SP Group will hence be waiving the fees for their centralised cooling system in Tengah until the end of this year.

Source: Empowering the Future of Energy at MyTengah on Facebook

This comes after residents complained about “excessive charges” the system incurs, and cancellation fees for those who decide not to proceed, per The Straits Times (ST).

Some also claimed that their units were “blowing hot air”, ST reported.

SP Group explained that the system uses cold water to remove heat, which is different from usual air-conditioning units. They have centralised chillers that cool the water before piping it into homes.

As such, they bill residents for the chilled water and the cooling system’s electricity usage of the cooling system per month.

SP Group will adjust usage rate from 2024 & lower cancellation fees

The grid operator also clarified that they review and adjust the usage rate of the system every quarter.

Over the last three years, due to Covid-19, the electricity cost has jumped almost 50% on top of a 20% increase, they highlighted. Thus, on 1 Oct, they increased the usage charge rate from 9 cents/kWrh to 20.38 cents/kWrh.

Since some residents have moved into their new Tengah flats, SP Group was able to refer to their usage data to review its charges.

Source: Housing & Development Board

Therefore, they will adjust the usage rate to 13.2 cents per kWrh from 1 Jan 2024.

Additionally, in the event of cancellation, SP Group will reduce the payment by 50%, in a “further gesture of goodwill”.

They also apologised that their service delivery and communications with customers have “fallen short of expectations”.

“We will endeavour to improve our customers’ experience with CCS,” SP Group pledged.

“We thank our customers for their support, patience and understanding.”

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Featured image adapted from Empowering the Future of Energy at MyTengah on Facebook, for illustration purposes only.

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