SINGAPORE: The electricity tariff for households will increase by 8.6 per cent for the April to June period this year, compared with the previous quarter, said SP Group on Wednesday (Mar 31).
This increase is mainly due to the higher cost of fuel for producing electricity by the power generation companies, it added.
Excluding Goods and Services Tax (GST), the tariff for households will increase from 20.76 cents to 22.55 cents per kWh for the quarter ending Jun 30.
Including GST, the rate is 24.13 cents per kWh.
This means that the average monthly electricity bill for families living in Housing Board four-room flats will increase by S$5.62, before GST, said SP Group.
SP Group reviews the electricity tariffs every quarter based on guidelines set by the Energy Market Authority (EMA).
The electricity tariff consists of four components – energy costs paid to the generation companies, network costs and market support services fees paid to SP Group, as well as market administration and power system operation fees paid to the energy market company and power system operator.
SP Group said the energy costs component is adjusted quarterly to reflect changes in the cost of fuel and power generation.
The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts.
The cost of power generation mainly covers the costs of operating the power stations, such as the manpower and maintenance costs, as well as the capital cost of the stations, SP Group said.
Gas tariffs for households will also increase by 0.84 cents per kilowatt hour to 18.07 cents from Apr 1 to Jun 30, City Gas said on Wednesday.
This is excluding 7 per cent GST.
The increase is due to higher fuel costs compared with the previous quarter, City Gas added.
City Gas also reviews the gas tariffs based on guidelines set by the Energy Market Authority (EMA), which regulates the gas industry.