Electricity Tariffs in Singapore to Increase in Q1 2024


December 2023 – Starting from 1 January to 31 March 2024, households in Singapore will experience a 4.1% increase in their electricity tariffs, equivalent to an additional 1.19 cents per kilowatt-hour (kWh), compared to the previous quarter.

This rise in electricity costs is primarily due to higher energy expenses, said the national grid operator SP Group said on Friday (Dec 29) in its press release.

Source : SPgroup

For families residing in four-room Housing Development Board (HDB) flats, the average monthly electricity bill will see an increase of $4.39 (before GST). This adjustment is reflective of the higher energy costs in comparison to the previous quarter.

The electricity tariff comprises four main components:

  1. Energy costs: Adjusted quarterly to incorporate changes in power generation expenses paid to generation companies.
  2. Network costs: Reviewed annually and paid to SP PowerAssets as a fee.
  3. Market Support Services Fee: Reviewed annually and paid to SP Services.
  4. Market Administration and Power System Operation Fee: Reviewed annually to recover the costs associated with operating the electricity wholesale market and power system, paid to Energy Market Company and Power System Operator.

However, in an effort to counterbalance these increased expenses, Singaporean households living in HDB flats can expect to receive U-Save rebates in January 2024. These rebates are part of the permanent GST Voucher (GSTV) scheme and the Assurance Package, aimed at assisting lower- to middle-income households with their utility bills and alleviating the impact of the Goods and Services Tax (GST) on their overall cost of living.

Source : SPgroup

Overall, electricity tariffs (before GST), including tariffs for non-households, will observe an average increase of 4.3% or 1.18 cents per kWh compared to the previous quarter. The revision of electricity tariffs is conducted quarterly by SP Group, in accordance with guidelines established by the Energy Market Authority (EMA), the electricity industry regulator.

Source : SPgroup
Source : SPgroup
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