Electricity tariffs to fall in October to December
Households and businesses can expect to pay less for power in the upcoming three months as electricity tariffs drop.
For the period from Oct 1 to Dec 31, electricity tariffs before the 7 per cent goods and services tax (GST) will decrease by an average of 3.3 per cent or 0.79 cent per kWh compared with the previous quarter, SP Group said.
The decline is due to the lower cost of natural gas for electricity generation, the group added.
In a press release yesterday, the group explained that the cut comes from the drop in energy costs, which is adjusted quarterly to reflect changes in the cost of fuel and power generation.
It said: "The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts."
For households, the electricity tariff before GST will decrease from 24.22 to 23.43 cents per kWh for the upcoming three months.
The group gave an example of the average monthly electricity bill for families still under SP Group and living in four-room Housing Board flats, which will decrease by $2.84.
The drop in tariff comes after the recent three-month period between July to September, where tariffs were the highest in nearly five years, since end-2014.
The group added that it reviews the tariffs quarterly based on guidelines set by the Energy Market Authority, the electricity industry regulator. - CHEOW SUE-ANN