Lower electricity bills from April to June as tariff falls by 5.4%

This article is more than 12 months old

Mar 31, 2023 01:58 pm

Consumers in Singapore will pay less for electricity bills in the April-June quarter as the tariff drops by an average of 5.4 per cent from the first quarter.

For households, the electricity tariff before goods and services tax (GST) will fall from 28.95 cents to 27.43 cents per kilowatt-hour (kWh) from Saturday to June 30, said grid operator SP Group on Friday.

Taking into account the GST rate of 8 per cent since Jan 1, the new tariff will be 29.62 cents, down from 31.27 cents between January and March.

This means the average monthly electricity bill for families living in HDB four-room flats will fall by $4.69 before GST.

The electricity bill now for a four-room HDB is $89.32, before GST, for an average monthly consumption of 308.52 kWh. It will be $84.63 for the same usage from April.

This is the third consecutive quarter that the electricity tariff has fallen. The tariff had been rising since April 2021 amid a global energy crisis, but dipped slightly by 0.43 per cent per kWh in the last quarter of 2022.

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The decrease in tariff is due to lower energy costs, SP said, adding that its energy costs have decreased by 1.86 cents per kWh, even as other costs have risen.

These costs, which are paid to power generation companies, are adjusted quarterly to reflect changes in the costs of fuel and power generation.

Energy cost accounts for 75.4 per cent of the tariff, while the remainder comprises the expense of transporting electricity through the power grid, and operations.

Meanwhile, City Energy, the producer and retailer of piped gas, also announced on Friday that the gas tariff for households before GST will dip by 0.16 cent per kWh, from 21.84 cents per kWh to 21.68 cents per kWh for the period from Saturday to June 30.

The revised tariff after GST is 23.41 cents per kWh.

It attributed the fall in gas tariff to lower fuel costs from those in the previous quarter.