Singaporean households will enjoy lower electricity and gas prices from January to March 2024, a positive development for many families as energy costs decrease.
Details of the Price Cuts
The electricity tariff will see a reduction of 3.4 per cent, equating to a decrease of 0.98 cent per kilowatt hour (kWh) before Goods and Services Tax (GST). This brings the new pricing to 28.12 cents per kWh, down from 29.10 cents. For families residing in four-room Housing and Development Board (HDB) flats, this translates to an expected reduction of about S$3.58 in their monthly electricity bill.
Gas Tariff Adjustments
Additionally, the gas tariff will dip by 0.25 cent per kWh, moving from 22.97 cents to 22.72 cents per kWh, thanks to falling fuel costs. This change is consistent with City Energy’s quarterly review based on guidelines from the Energy Market Authority (EMA).
Understanding Tariff Components
The electricity tariff includes various components:
- Energy costs: Payments made to power generation companies.
- Network costs: Charges for transporting electricity via the power grid.
- Market support services fee: Covers costs for billing and meter reading by SP Group.
- Wholesale market operating costs: Fees for the energy market company.
These structures are crucial for understanding how prices fluctuate with global fuel changes.
Regular Reviews Ensured
SP Group conducts these tariff reviews quarterly according to the EMA’s guidelines, ensuring that consumers are charged fair prices according to market trends.