For the period from 1 April to 30 June 2021, electricity tariff before GST will increase by an average of 8.7 per cent or 1.77 cents per kWh compared with the previous quarter, said SP Group on Wednesday (31 Mar).
The Group said that this is mainly due to “higher cost of fuel for producing electricity by the power generation companies”, which is tied to oil prices by commercial contracts.
For households, the electricity tariff will increase from 20.76 to 22.55 cents per kWh for 1 April to 30 June 2021.
This means that the average monthly electricity bill for families living in HDB four-room flats will increase by S$5.62 – before the 7 per cent GST.
SP Group reviews the electricity tariffs on a quarterly basis according to guidelines by the Energy Market Authority (EMA).
The electricity tariff consists of four components: the energy cost or cost paid to the generation companies (72.4 per cent), network cost to transport electricity through the grid (25.6 per cent), Market Support Fee (1.8 per cent), and Market administration and power system operation fees (less than 1 per cent).
Besides that, City Gas also said on Wednesday that gas tariffs for households will be increased in the second quarter by 0.84 cents per kilowatt hour to 18.07 cents. This is the price before GST is applied.
Similarly, it stated that the increase is “due to an increase in fuel costs compared with the previous quarter”.
City Gas also reviews the gas tariffs on a quarterly basis according to guidelines by the EMA, which regulates the gas industry.