Lower household electricity bills in Q2 as tariff falls 5.4%

SINGAPORE’S electricity tariff will decline quarter on quarter by an average of 5.4 per cent, or 1.51 Singapore cents per kilowatt-hour (kWh), in the second quarter from Apr 1 to Jun 30. 

This is due to lower energy costs compared with Q1 2023, said local power grid vendor SP Group on Friday (Mar 31).

Notwithstanding goods and services tax (GST), the electricity tariff for households in Q2 will fall to 27.43 cents per kWh on average, from 28.95 cents previously. This means the average monthly electricity bill for families living in Housing and Development Board (HDB) four-room flats will decrease by S$4.69, or 5.3 per cent, before GST.

The average consumption per customer for those residing in a HDB four-room flat is estimated to be 308.52 kWh. The lower tariff for Q2 would suggest a new average monthly bill of S$84.63 as opposed to the previous average of S$89.32.

The electricity tariff comprises mainly energy costs, which are estimated to decline by 1.86 cents per kWh to 20.69 cents per kWh in Q2, notwithstanding GST. This component is adjusted quarterly to reflect changes in the cost of fuel and power generation.

Other components contributing to the overall electricity tariff – network costs, market support services fee, as well as market administration and power system operation fee – will all increase in Q2 2023. 

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Separately, City Gas said the gas tariff for Q2 before GST will fall by 0.16 cent to 21.68 cents per kWh, from 21.84 cents in Q1. This implies a revised tariff of 23.41 cents after accounting for 8 per cent GST.

The piped gas supplier on Friday attributed the decline to lower fuel costs compared to the previous quarter.

Both SP Group and City Gas review electricity tariffs and gas tariffs, respectively, on a quarterly basis according to guidelines set by the Energy Market Authority (EMA), which has approved both entities’ revised tariff rates for Q2 2023.