SINGAPORE: The electricity tariff for households in Singapore will increase by an average of 3.8 per cent for the July to September period this year, compared with the previous quarter, SP Group said on Wednesday (Jun 30).
This increase is due to higher cost of fuel for producing electricity by power generation companies, it added.
Before Goods and Services Tax (GST), tariff for households will increase from 22.55 cents to 23.38 cents per kWh for the quarter ending Sep 30. Including GST, the rate is 25.02 cents per kWh.
This means the average monthly electricity bill for families living in Housing Board four-room flats will increase by S$3.04 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.
Energy costs is adjusted quarterly to reflect changes in the cost of fuel and power generation, SP Group said.
The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts, while the cost of power generation covers mainly the cost of operating power stations, such as manpower and maintenance costs, as well as the capital cost for the stations.
The gas tariff for households will also increase by 0.4 cent per kWh to 18.47 cents from Jul 1 to Sep 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 EMA, which regulates the gas industry.