Singapore's electricity, gas tariffs to rise in Q1 2022
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SINGAPORE'S electricity and gas tariffs are set to increase in the first quarter of 2022, according to state energy suppliers in their respective press statements on Thursday (Dec 30).
From Jan 1 to Mar 31, 2022, the electricity tariff before the 7 per cent goods and services tax (GST) will grow by an average of 5.6 per cent or S$0.0133 per kilowatt-hour (kWh) from Q4 2021 levels.
SP Group attributed the rise to higher fuel costs, as around 95 per cent of Singapore's electricity is generated using imported natural gas at prices indexed to oil prices.
It noted that a confluence of recovering economic activity, severe weather events, and a series of gas production outages has sent global energy market prices significantly higher, leading to a rise in electricity prices in many markets.
The electricity tariff for households will increase to S$0.2544 per kWh from S$0.2411 previously, which translates to an average monthly electricity bill hike of S$4.70 for families living in 4-room Housing Development Board (HDB) flats, excluding 7 per cent GST.
Including GST, the new electricity tariff rate for households will be S$0.2722 per kWh.
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As the trustee of City Energy Trust, City Energy separately announced that with effect from Jan 1, the gas tariff for households for Q1 2022 will increase to S$0.2021 per kWh, notwithstanding GST. This is up by S$0.0117 from S$0.1904 per kWh from Q4 of 2021. (see amendment note)
The general gas tariff will be S$0.2162 after factoring in 7 per cent GST.
City Energy, formerly known as City Gas, said the rise is due to higher fuel and non-fuel costs compared with the previous quarter.
SP Group and City Energy review tariffs for electricity and gas, respectively, based on guidelines set by industry regulator Energy Market Authority (EMA). The EMA has approved both entities' revised tariff rates for the first quarter of 2022.
Amendment note: An earlier version of this story mentioned the new gas tariffs will take effect from Dec 1 when it is in fact, Jan 1. The difference between Q4 2021 and Q1 2022's gas tariff per kWH is S$0.0117 instead of S$0.017. This article has been revised to reflect this.
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