SINGAPORE: Household electricity and gas tariffs will decrease for the period between July and September due to lower energy costs after they remained steady in the previous quarter.
Compared with the previous quarter, the electricity tariff will decrease by 2.3 per cent or 0.65 cent per kWh before Goods and Services Tax (GST), national grid operator SP Group said on Monday (Jun 30).
With the electricity tariff before GST at 27.47 cents per kWh, this translates to a fall in the average monthly electricity bill for families living in Housing and Development Board (HDB) four-room flats by S$2.36 before GST.
The gas tariff before GST will also decrease by 0.44 cent per kWh, from 22.72 cents per kWh to 22.28 cents per kWh for the upcoming quarter due to lower fuel cost, said City Energy.
SP Group, which owns and operates Singapore’s electricity network, reviews the electricity tariffs every quarter following guidelines set by the industry regulator, the Energy Market Authority (EMA).
“The energy cost component of the electricity tariffs for each quarter is set using the average natural gas prices in the first two and a half months in the preceding quarter,” said SP Group.
“The electricity tariffs may fluctuate quarter to quarter due to volatile global fuel prices driven by geopolitical factors such as the ongoing conflicts in the Middle East.”
The electricity tariff consists of four components, including energy costs paid to power generation companies and network costs paid to SP Group to recover the cost of transporting electricity through the power grid.
There is also a market support services fee paid to SP Group that recovers the costs of billing and meter reading, as well as a fee paid to the energy market company that recovers the costs of operating the electricity wholesale market and power system.
City Energy also reviews the gas tariffs every quarter based on guidelines set by EMA.
