Electricity tariffs to rise while gas prices will fall
Households can expect higher electricity bills and lower gas bills for the next three months, starting tomorrow.
Electricity tariffs for households powered by the SP Group are set to rise by an average of 3.5 per cent in the first quarter of next year, the energy utilities provider said yesterday.
This is mainly due to higher energy costs compared with the previous quarter, SP Group added.
For these households, electricity charges will go up by 0.81 cents per kilowatt hour (kwh) for the period from Jan 1 to March 31, compared with the previous quarter.
Excluding the goods and services tax, this translates to a rise from 23.43 cents per kwh to 24.24 cents per kwh for households powered by SP Group.
This rate is the highest since the period from October to December 2014, when it was 25.28 cents, before GST. The previous highest rate was 24.22 cents from July to September this year.
The latest increase means that the average monthly electricity bill for a family living in a three-room Housing Board flat will go up from $58.51 to $60.53, a rise of $2.02.
It will go up from $79.68 to $82.44 for a family in a four-room HDB flat, a rise of $2.76; and from $92.75 to $95.95 for a family in a five-room HDB flat, a rise of $3.20.
SP Group reviews electricity tariffs quarterly, based on guidelines set by the regulator, the Energy Market Authority (EMA), which approved the new pricing.
A key determinant of the tariff is the cost of fuel and power generation.
LOWER GAS PRICES
City Gas, which reviews gas tariffs quarterly, also announced yesterday that gas prices will fall from tomorrow.
The gas tariff for households will dip by 4.22 per cent, which means they will pay 17.23 cents per kwh in the first quarter of the year, down from 17.99 cents per kwh, before GST.
City Gas said the lower gas prices are due to a decline in fuel costs compared with the previous quarter.
Asked why electricity prices are rising and gas prices falling, an EMA spokesman said: "The difference between the electricity and town gas tariffs is mainly due to the different fuel types used and their prices moving in different directions."