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SP Group's electricity tariffs to go up by 8.1% in third quarter

SP Group's electricity tariffs to go up by 8.1% in third quarter

File photo of HDB Flats in Singapore (Photo: TODAY/Ili Nadhirah Mansor)

SINGAPORE: Electricity tariffs will increase by an average of 8.1 per cent for the July to September period compared with the previous quarter, SP Group said on Thursday (Jun 30). 

"The increase is mainly due to higher energy cost driven by rising global gas and oil prices exacerbated by the conflict in Ukraine," it added in a media release . 

Excluding Goods and Services Tax (GST), the electricity tariff for households will increase from 27.94 cents to 30.17 cents per kWh for the quarter ending Sep 30.

The average monthly electricity bill for families living in four-room HDB flats will increase by S$8.25 before GST.

Those living in HDB executive flats will see their bills increase by an average of S$11.76.

Average monthly electricity bills of domestic customers with the increase in electricity tariffs from Jul 1. (Image: SP Group)

This is the sixth consecutive quarter of increase. 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. 

The energy costs component is adjusted quarterly to reflect the 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 covers mainly the costs of operating the power stations, such as the manpower and maintenance costs, as well as the capital cost of the stations.

The gas tariff for households will also increase by 1.43 cents to 23.09 cents per kWh from Jul 1 to Sep 30, City Energy announced on Thursday. This is excluding 7 per cent GST.

The increase is due to higher fuel costs compared with the previous quarter, said City Energy.

City Energy also reviews the gas tariffs based on guidelines set by EMA, which regulates the gas industry.

To help residents with their bills amid a rising cost of living, Deputy Prime Minister Lawrence Wong earlier this month announced that all Singaporean households will receive a S$100 utilities credit by September.

It is among several measures to help people cope with inflation. About 1.5 million Singaporeans will also receive up to S$300 cash in a special GST Voucher payment in August, in addition to the regular GSTV-Cash amounts they were meant to receive in 2022. 

Source: CNA/yb(gr)

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