SP Group announced yesterday that electricity tariffs will rise by an average of 2.8 per cent (0.59 cents per kilowatt hour) from 1 April to 30 June this year. This hike comes after tariffs were raised by an average of 6.3 per cent between January and March 2018, which – at the time – were the highest tariffs imposed since 2015.
Government-linked SP Group explained that this latest electricity tariffs increase will be implemented mainly due to the higher energy cost of producing electricity. In December last year, the group gave a similar reason to explain the tariffs hike between Jan-Mar 2018 when it said that the increase was due to the higher cost of natural gas for electricity generation.
In the same quarter last year, April to June 2017, SP Group hiked electricity tariffs by an average of 6.1 percent compared to the previous quarter.
In the next quarter, July to September 2017, tariffs decreased by an average of 3.2 per cent and in the final quarter of 2017, tariffs went down by an average of 2.1 per cent. SP Group pointed to a lower cost of natural gas for electricity generation and lower non-fuel costs.
Despite these reductions, the tariffs have increased by a sizeable 9.9 per cent in just one year.
News of the electricity tariffs hikes over the past year come as the Government announced that water prices will be increased by a whopping 30 per cent during Budget 2017 and even as Singaporeans expect the Goods and Services Tax (GST) to rise by 2 per cent in the coming years, following confirmation by the Government during this year’s Budget.
Meanwhile, SP Group – which is wholly owned by sovereign wealth fund Temasek Holdings – made a net profit of $948.8 million after tax in the last financial year, ending 31 Mar 2017: