Lower electricity bills for households from Oct to Dec
Households will soon have slightly lower electricity bills, as the electricity tariff for the last quarter of the year will decrease by 1.4 per cent, the first time it has fallen after more than a year of increases.
The electricity tariff before GST from Oct 1 to Dec 31 will decrease from 30.17 cents to 29.74 cents per kilowatt hour (kWh), said grid operator SP Group on Friday.
The electricity tariff has been continuously rising since April last year, amid high energy costs driven by the rising global gas and oil prices exacerbated by the war in Ukraine.
SP's lower electricity tariff would mean that the average monthly electricity bill for a family living in a HDB four-room flat will decrease by $1.55 (before GST).
Meanwhile, producer and retailer of piped town gas City Energy also announced on Friday that the gas tariff for households will decrease by 0.36 cents per kWh, from 23.09 cents per kWh to 22.73 cents per kWh from Oct 1 to Dec 31.
Both SP and City Gas attributed the fall in prices to lower fuel costs compared with the previous quarter.
SP said on Friday that its energy costs have decreased by 0.43 cents per kWh.
These energy costs, which are paid to power generation companies, are adjusted quarterly to reflect changes in the costs of fuel and power generation.
The cost of fuel accounts for 78.5 per cent of the electricity tariff while the remainder comprises the cost of power generation, which includes manpower and maintenance of power stations.