A welcome relief for homeowners.
Singapore Household Electricity Bills Witness a 5.3% Drop for the Second Quarter of 2023 With the shift to hybrid work models and people returning to offices, home electricity consumption remains high due to prolonged device usage. From April to June, electricity bills for households will decrease by 1.51 cents per kWh compared to the first quarter, resulting in a 5.3% reduction in electricity tariff prices. This decline is due to lower energy costs in comparison to the previous quarter.
Household Electricity Bills to Decrease from April 1 to June 30 SP Group announced that electricity tariffs before GST will drop from 28.95 cents to 27.43 cents per kWh until June 30. Consequently, the average monthly electricity bill for a standard four-room HDB flat will decrease by S$4.69 before the 8% GST. This quarter’s reduction marks the third consecutive quarter of declining household electricity tariffs.
The reduction follows SP Group’s quarterly review of electricity tariffs based on guidelines set by the Energy Market Authority (EMA). For those planning and budgeting for the upcoming quarter, the estimated new average monthly bills for various household types reveal that bungalow owners may see savings of up to S$29.46 per month compared to the first quarter, while HDB flat owners will experience reductions ranging from S$1.84 to S$6.75 per month.
Factors Influencing Electricity Tariffs SP Group explained that tariffs consist of four components: energy costs, network costs for transporting electricity through the power grid, Market Support Services Fee, and Market Administration and Power System Operation Fee paid to the Energy Market Company and Power System Operator. In this quarter, energy costs decreased by 1.86 cents per kWh, while the other components experienced slight increases.
The reduction is primarily attributed to lower prevailing energy costs, reflecting fluctuations in fuel and power generation costs. Fuel cost refers to the expense of imported natural gas, which is linked to oil prices through commercial contracts, while power generation cost includes the operating costs of power stations, such as manpower and maintenance expenses.
Despite the decrease in tariffs, it remains essential to monitor electricity consumption, as rates for the next quarter are uncertain.