Electricity & Gas Tariffs To Increase In Next Quarter
Over the past year and a half, most of us have been staying home more than ever before. Steeper household bills are to be expected.
And the challenge might just be growing as SP Group shared that electricity tariffs will increase by a further 3.8% for Jul to Sep. Gas tariffs will also increase.
This is due to higher costs of fuel in the coming months.
Electricity tariff increases by 3.8%
On Wednesday (30 Jun), SP Group announced that household electricity tariff will increase in the next quarter.
Singapore residents will see an increase of about 3.8% for electricity taxes compared to previous months, reported Channel NewsAsia (CNA).
This would mean an increase from 22.55 cents per kWh to 23.38 cents per kWh before Goods and Services Tax (GST).
Inclusive of GST, the rate stands at 25.02 cents per kWh.
For an average 4-room HDB flat, it translates to an average increase of $3.04 before GST.
Electricity and gas tariff increase due to rise in fuel cost
In the next quarter, household gas tariffs will also be increasing by 0.4% per kWh.
This means a revised rate of 18.47 cents per kWh from 1 Jul to 30 Sep, not including GST, reported CNA.
The impending rise in electricity and gas taxes stems from an increase in fuel cost for producing electricity by power generation companies.
Gas and electricity tariffs reviewed quarterly
According to CNA, SP Group does quarterly reviews of Singapore’s electricity tariffs based on Energy Market Authority’s (EMA) guidelines.
Electricity tariff is made up of the following components:
- energy costs paid to generation companies
- network costs and market support services fees paid to SP Group
- market administration and power system operation fees paid to energy market company and power system operator
Gas tariffs are also reviewed every quarter by City Gas in accordance with EMA guidelines.
Be mindful of electricity consumption
Now that we’ve been given a heads up, don’t be alarmed if you see slight increases in your household bills in the coming months.
Perhaps there’s also no better time to be more mindful of our electricity consumption.
After all, with working from home still being the norm, it might do us all good to unplug every now and then.
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Featured image adapted from Unsplash.