Beginning January to March 2019, Singaporean consumers can expect lower electricity and gas tariffs. This electricity cut is due to lower cost of natural gas for electricity generation and a drop in fuel prices from the previous quarter. According to the energy utilities provider SP Group which announced on Sunday (30 Dec) that it will drop by an average of 1.2%, or 0.28 cent, per kilowatt hour (kWh).
The company said that households’ electricity tariff will go down from 24.13 cents to 23.85 cents per kWh for the quarter. This signifies that the standard monthly electricity bill for a 4-room Housing Board flat will plunge by S$1 per month, not including goods and service tax (GST).
Composing the electricity tariff are energy costs, network costs, a market support services fee, as well as a market administration and power system operation fee.
This marks the first drop in electricity tariff after rising for five consecutive quarters since October 2017.
Generally, the electricity tariffs are reviewed quarterly, following the guidelines set by the Energy Market Authority (EMA), the electricity and gas industry regulator.
City Gas Pte Ltd, as Trustee of City Gas Trust, announced that the gas tariff (before 7% GST) for households will decrease by 0.81% or 0.16 cent per kilowatt hour (kWh), from 19.67 cents per kWh to 19.51 cents per kWh for the period 1 January 2019 to 31 March 2019.
City Gas reviews the gas tariffs based on guidelines set by the Energy Market Authority (EMA), the gas industry regulator.
Oil in Singapore’s economy
Considering the role of oil in propelling Singapore’s economy, it is natural for entrepreneurs and consumers alike to worry when its prices display abnormal unpredictability or reveal signs of approaching hikes as a reaction to supply-demand dynamics, or other driving forces such as geopolitics and trade wars. However, when prices go down, obviously everyone is happy.
By May of 2019, when the full roll-out is completed, 1.4 million households and small businesses will have the option to buy electricity from 12 different retailers.