Electricity tariff to rise an average of 8.7% in Q2, but still below year-ago rate

SINGAPORE'S electricity tariff for the period between April 1 and June 30 is going up.

The tariff (before the goods and services tax or GST) will rise by an average of 8.7 per cent or 1.77 cents per kilowatt hour (kWh) from the rate in the previous quarter, utilities company SP Group announced on Wednesday.

The increase is mainly due to the higher cost of fuel used by the power generation companies for producing electricity, said SP Group. Even with the increase, the tariff for Q2 2021 remains lower than it was in Q1 and Q2 of last year.

For households, the electricity tariff before GST will increase from 20.76 to 22.55 cents per kWh. The average monthly electricity bill for families living in Housing Board four-room flats will rise by S$5.62.

SP Group reviews the electricity tariffs every quarter based on guidelines set by the electricity industry regulator, Energy Market Authority (EMA).

An EMA spokesperson noted that fuel prices fell in the first half of 2020 amid the Covid-19 pandemic, but have been on the rise with the gradual resumption of global economic activity and tightening supply in the global oil market.

The tariff rate applies only to consumers who are still buying electricity from SP Group at the regulated tariff. As of end-February, this was about 51 per cent of household accounts.

"For greater electricity price certainty, consumers can consider buying electricity under Fixed Price Plans offered by retailers in the Open Electricity Market," said the spokesperson.