The electricity tariff in Singapore will increase by an average of 3.7 per cent in the last quarter of 2023.
This is an increase of 0.98 cents per kWh, on average.
Higher electricity tariff due to higher energy costs
This is due to higher energy costs compared with the costs between Jul. and Sep., SP Group explained in a media release on Sep. 29.
As a result, from Oct. to Dec., households in Singapore can expect an increase from 27.74 to 28.70 cents per kWh for the electricity tariff, before GST is applied.
This means a family living in a HDB four-room flat is likely to see an increase of S$3.57 (before GST) in their monthly electricity bill, on average.
The distributor added that they review the electricity tariffs every quarter based on guidelines set by the electricity industry regulator, Energy Market Authority (EMA).
Breakdown of electricity tariff
The electricity tariff is made up of four components:
Energy costs are paid to companies which generate energy, and are adjusted each quarter to reflect changing costs of fuel and power generation, SP Group said.
This includes the costs of imported natural gas, which is used as fuel, as well as the operating costs for power stations.
Another component is the network costs for transporting electricity through the power grid.
The tariff also includes the the market support services fees paid to SP Group.
The last component is the the market administration and power system operation fee, which is paid to energy market companies and power system operators in Singapore.
Second consecutive increase
This is the second consecutive quarter that the household electricity tariff has seen an increase.
Previously in April 2022, Singapore electricity tariffs shot up 10 per cent as the Ukraine war drove up oil and gas prices.
It also increased to a two-year high of 30.17 cents per kWh, during the July to September quarter of 2022.
This was followed by a decrease in the tariff for the next three quarters, until April this year.
Gas tariff to go up as well
City Energy, one of Singapore's leading gas suppliers, also announced an increase in the gas tariff from Oct. 1 to Dec. 31, 2023.
It will be adjusted from 21.91 cents per kWh to 22.42 cents per kWh, before GST.
This is an increase of 0.51 cents per kWh.
City Energy stated that higher fuel costs contributed to the price increase.
It also stated that the revised gas tariffs have been approved by EMA:
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