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Electricity tariff for households to increase by 3.1% for October to December period

Electricity tariff for households to increase by 3.1% for October to December period

HDB flats in Singapore. (Photo: CNA/Calvin Oh)

SINGAPORE: The electricity tariff for households will increase by 3.1 per cent for the October to December period this year, compared with the previous quarter, said SP Group on Thursday (Sep 30).

The rise is due to the higher cost of fuel for producing electricity by the power generation companies, it added.

Excluding Goods and Services Tax (GST), the tariff for households will go up from 23.38 cents to 24.11 cents per kWh for the quarter ending Dec 31.

Including GST, the rate is 25.80 cents per kWh.

Quarterly household electricity tariff. (Image: SP Group)

This means that the average monthly electricity bill for families living in Housing Board four-room flats will increase by S$2.49, before GST, said SP Group.

SP Group reviews the electricity tariffs every quarter based on guidelines set by the Energy Market Authority (EMA).

Average monthly electricity bills of domestic customers. (Image: SP Group)

The electricity tariff consists of four components – energy costs paid to the generation companies, network costs and market support services fees paid to SP Group, as well as market administration and power system operation fees paid to the energy market company and power system operator. 

SP Group said the energy costs component is adjusted quarterly to reflect changes in the cost of fuel and power generation. 

The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts. 

The cost of power generation mainly covers the costs of operating the power stations, such as the manpower and maintenance costs, as well as the capital cost of the stations, SP Group said. 

The tariff breakdown for the fourth quarter of 2021. (Image: SP Group)
Source: CNA/aj(gr)