SP Services said on Tuesday that electricity tariffs for the period from Jan 1 to March 31, 2015, will decrease by an average of 8 per cent, or 1.99 Singapore cents per kWh, compared to the previous quarter.
"The tariff reduction is due to lower cost of fuel (i.e. natural gas) for electricity generation, which fell by 16.4 per cent compared to the previous quarter,'' SP Services said.
Fuel cost makes up about 50 per cent of the tariff, translating to a proportional reduction of 8 per cent in the first quarter of 2015 electricity tariff.
Electricity tariff for households will decrease from 25.28 to 23.29 cents per kWh as a result and the average monthly electricity bill for families living in four-room HDB flats will decrease by S$7.93.
SP Services reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator. The tariffs have been approved by EMA.