30-6-2023 (SINGAPORE) SP Group announced on Friday (Jun 30) that the electricity tariff in Singapore will see an average increase of 1.2% in the third quarter of this year. The utilities provider cited higher energy costs as the reason for the increase compared to the previous quarter. This comes after three consecutive quarters of tariff decreases.
For households, the electricity tariff before Goods and Services Tax (GST) will rise from 27.43 cents per kWh to 27.74 cents per kWh for the July to September period. As a result, families residing in four-room Housing and Development Board (HDB) flats can expect their average monthly electricity bill to increase by S$1.14 (US$0.84) before GST, according to SP Group.
The Energy Market Authority (EMA) sets guidelines for the review of electricity tariffs every quarter. The tariff comprises energy costs paid to generation companies, network costs, 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. The energy costs component is adjusted quarterly to reflect changes in fuel and power generation expenses, while the fuel cost is influenced by the price of imported natural gas tied to oil prices.
In addition to the electricity tariff, the gas tariff for households will also see an increase from Jul 1 to Sep 30. City Energy reported a rise of 0.23 cent per kWh, resulting in a new tariff of 21.91 cents per kWh before GST. The higher fuel costs compared to the previous quarter were cited as the reason for the increase, according to City Energy, which reviews gas tariffs based on EMA guidelines.
