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S'pore electricity tariff drops by 3.4% for Jan. to Mar. 2025 due to 'lower energy costs': SP
The gas tariff will also decrease in the 1st quarter of 2025.
December 30, 2024, 02:22 PM
Prices for electricity and gas will decrease in the first quarter of 2025, compared to the current quarter, SP Group and City Energy announced.
The electricity tariff in Singapore, before GST, will decrease by 3.4 per cent in the upcoming quarter from Jan. 1, 2025 to Mar. 31, 2025, compared to the previous quarter.
The decrease is 0.98 cents per kWh, and is due to "lower energy costs", SP Group said in a Dec. 30, 2024 media release.
The decrease means that families in HDB four-room flats can expect to pay S$3.58 less for their monthly electrical bill, on average, before GST.
SP Group reviews 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 market support services fees paid to SP Group.
The last component is the market administration and power system operation fee.
Second consecutive decrease, lowest tariff rate since third quarter of 2023
This is the second consecutive quarter that the household electricity tariff has seen a decrease.
The rate of 28.12 cents per kWh in the first quarter of 2025 is also lower than the rates in each of the four quarters of 2024.
The last time Singapore saw a lower rate was in the third quarter of 2023, where the rates were 27.74
Graphic showing Singapore household electricity tariffs per quarter, from SP Group.
Gas tariff
City Energy, which supplies piped gas to homes in Singapore, also announced a decrease in the gas tariff for the first quarter of 2025.
It will be adjusted from 22.97 cents per kWh to 22.72 cents per kWh, before GST.
This is an decrease of 0.25 cents per kWh.
City Energy stated that lower fuel costs contributed to the price decrease.
It also stated that the revised gas tariffs, as follows, have been approved by EMA:
Gas tariffs for Q1 2025, before GST. Table from City Energy.
Top image from Unsplash.
