Singapore electricity and town gas tariffs to fall in fourth quarter as energy costs ease

Singapore households will pay lower electricity and town gas tariffs from October to December, following a decline in energy costs reflected in the quarterly tariff review.

The household electricity tariff will fall by 3.32 cents per kWh, or 10.4 per cent, before Goods and Services Tax (GST), from 31.91 cents per kWh in the third quarter to 28.59 cents per kWh in the fourth quarter, SP Group said on Wednesday (30 September).

For a family living in an HDB four-room flat, the average monthly electricity bill will decrease by S$12.99, based on average household consumption.

The overall electricity tariff, including rates for non-household consumers, will fall by an average of 10.6 per cent, or 3.32 cents per kWh, compared with the July-to-September period.

Town gas tariff also falls

The regulated town gas tariff will also decrease from October.

City Energy said the household gas tariff will fall by 2.03 cents per kWh, from 23.48 cents per kWh in the third quarter to 21.45 cents per kWh in the fourth quarter, before GST. That represents a decrease of about 8.6 per cent.

Town gas is commonly used by households for cooking and heating.

The tariff is reviewed quarterly according to guidelines set by the Energy Market Authority (EMA).

Unlike electricity, the fuel-cost component of the town gas tariff is calculated using the average prices of high-sulphur fuel oil and naphtha during the first two-and-a-half months of the preceding quarter.

Why tariffs are falling despite higher fuel prices

Singapore's electricity tariffs are adjusted every quarter to reflect changes in fuel and electricity production costs.

The fuel-cost component is based on average daily natural gas prices during the first two-and-a-half months of the preceding quarter. This creates a time lag between movements in international fuel prices and their effect on regulated electricity tariffs.

For the fourth quarter, the tariff therefore reflects natural gas prices during the relevant period in the third quarter rather than prices prevailing at the end of September.

Singapore relies heavily on imported natural gas for electricity generation. EMA said in June that about 95 per cent of Singapore's electricity is produced from imported natural gas, which is also the main feedstock for town gas.

The third-quarter tariff had risen sharply after higher global gas prices were reflected in the calculation. SP Group said the July-to-September electricity tariff increased by 17 per cent, or 4.64 cents per kWh, from the previous quarter because of higher energy costs.

Global fuel prices remain a concern

SP Group said changes in global fuel prices take time to be reflected in Singapore's regulated electricity tariffs.

Global fuel prices have risen since September amid escalating tensions in the Middle East. If the higher prices persist, SP Group said electricity tariffs could increase in the following quarter.

The same timing applies to town gas tariffs. City Energy said that continued increases in global fuel prices could result in a higher town gas tariff in the next quarter.

EMA has previously explained that the quarterly system is designed to reflect fuel costs while smoothing out short-term fluctuations. The regulated electricity tariff is calculated using the average natural gas price during the first two-and-a-half months of the preceding quarter.

Households have different electricity purchasing options

The regulated tariff is the default electricity purchasing option for most Singapore households.

Households can also buy electricity from licensed retailers under fixed-price, discount-off-the-regulated-tariff or time-of-use plans. EMA said consumers should compare available plans before choosing their electricity supply option.

The fourth-quarter regulated tariff applies from 1 October to 31 December 2026. The figures quoted by SP Group and City Energy before GST do not include the 9 per cent GST charged on utility bills.