SINGAPORE: Singaporean households will feel some relieved as electricity and gas tariffs decrease in the upcoming quarter.
SP Group and City Energy, the state energy suppliers, announced on Thursday, March 28, a tariff decrease from April 1 to June 30. This move is due to lower costs compared to the first quarter 2024.
According to The Business Times, for electricity, consumers can expect a decrease of 0.3%, equivalent to S$0.001 per kilowatt-hour (kWh), bringing the tariff down to S$0.2979 per kWh before goods and services tax (GST).
Families residing in a four-room HDB flat could have around S$0.33 less on monthly electricity bills.
Overall, electricity tariffs, including for non-households, are projected to decrease by an average of 0.4% or S$0.0012 per kWh compared to the previous quarter.
City Energy also announced a 0.1% reduction in the gas tariff, which translates to S$0.0003 per kWh. This brings the gas tariff for households down to S$0.2312 per kWh from S$0.2315 in the previous quarter.
After factoring in GST at 9%, the revised tariff would be S$0.252 per kWh.
For heavy gas consumers, the pre-GST tariff will drop to S$0.2191 per kWh for those using a minimum of 1,000 kWh per month, while the revised tariff will be S$0.2131 per kWh before GST for those using a minimum of 50,000 kWh per month.
SP Group and City Energy carry out these reviews every quarter, following the Energy Market Authority (EMA) guidelines. This ensures that tariffs are adjusted per market conditions and regulatory requirements.
Household energy bills in the first quarter of 2024 were noticeably higher compared to the last quarter of 2023, primarily due to rising energy costs, an increase in the carbon tax, and the impending rise in GST from 8% to 9%.
While the decrease in tariffs may seem modest, it is a welcome relief for many households grappling with increasing utility bills. /TISG