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Electricity Tariffs in Singapore Rise on Higher Energy Costs

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Electricity tariffs for Singaporean households will rise 17% in Q3, relative to Q2 levels, due to higher energy costs, grid operator SP Group said on Tuesday.

This will increase average monthly electricity bills for families living in four-room flats under the Housing and Development Board by SG$17.14 ($13.24), according to the statement.

Including tariffs for non-households, the overall electricity tariff will rise by an average 17.5% from July 1 through Sep.30, SP Group said, reflecting the surge in natural gas prices from April 1 through June 15.

The methodology used in setting electricity tariffs is based on the guideline set by the Energy Market Authority, which refers to the average natural gas prices in the first two and a half months of the preceding quarter.

"Changes in global fuel prices take some time to be reflected in the electricity tariffs," the grid operator said, noting that tariffs for Q4 may decrease if global fuel prices moderate based on the development in the Middle East situation.

In Q2, electricity tariff for households rose by only 2.1%, as the period under review covered elevated fuel prices from the start of the US-Iran war on Feb. 28 through March 15.

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