Singapore households will enjoy lower electricity and gas tariffs in the first quarter of 2025, thanks to declining energy costs.
SP Group announced on Monday (30 Dec) that the electricity tariff will drop by 3.4% or 0.98 cents per kilowatt hour (kWh) before Goods and Services Tax (GST).
The new rate of 28.12 cents per kWh marks a reduction from the current 29.10 cents per kWh.
The revised tariff means an average family living in a four-room HDB flat could save approximately S$3.58 on their monthly electricity bills.
SP Group noted that the tariffs are reviewed quarterly based on guidelines established by the Energy Market Authority (EMA). Tariff changes are influenced by factors such as the cost of energy, operational expenses for power generation, and fluctuations in global fuel prices.
Gas prices will also decrease over the same period. City Energy, which supplies piped gas to households, announced a reduction of 0.25 cents per kWh in gas tariffs.
The revised rate will be 22.72 cents per kWh before GST, compared to the current 22.97 cents per kWh. Like electricity tariffs, gas rates are reviewed quarterly in line with EMA’s regulatory framework and are sensitive to shifts in global fuel costs.
These adjustments in tariffs reflect the impact of lower global energy costs on utilities. SP Group and City Energy stated that the reductions are based on quarterly reviews, adhering to Singapore’s energy tariff management framework, which adjusts pricing in line with prevailing market conditions.
Electricity tariffs are determined by several components, including energy production costs and power station operations. Similarly, gas tariffs are influenced by related cost structures. Both agencies noted that tariffs are reviewed every quarter, and fluctuations depend on global fuel prices and other market dynamics.
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