Electricity tariffs to fall by 8% in the first quarter

SINGAPORE — Electricity tariffs will decrease by an average of 8 per cent, or 1.99 cents per kWh, for the period from Jan 1 to March 31, as compared with the previous quarter.

The electricity tariff for households will decrease from 25.28 to 23.29 cents per kWh, meaning the average monthly electricity bill for families living in four-room Housing and Development Board flats will fall by about S$7.93.

SP Services said the tariff reduction is due to the lower cost of fuel for electricity generation, which fell by 16.4 per cent in the previous quarter.

It added that fuel cost makes up approximately 50 per cent of the tariff, which translates to a proportional reduction of 8 per cent in electricity tariffs for the first quarter of next year.

This is the third consecutive decline since the third quarter of this year.

SP Services reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority, the electricity industry regulator.