For the period from 1 July to 30 September 2021, electricity tariff before GST will increase by an average of 3.8 per cent, or 0.84 cents per kWh, compared with the previous quarter, said SP Group on Wednesday (30 Jun).
In a statement, SP Group noted that the increase was due to the higher cost of fuel for producing electricity by the power generation companies.
For households, the electricity tariff before GST will increase from 22.5 cents to 23.38 cents per kWh for the quarter ending 30 September. The rate is 25.02 cents per kWh if inclusive of GST.
This means that the average monthly electricity bill for families living in Housing Board four-room flats will increase by S$3.04 before 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, network cost to transport electricity through the grid, Market Support Fee, and Market administration and power system operation fees.
SP Group stated that energy cost is adjusted quarterly to reflect changes in the cost of fuel and power generation.
The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts, while the cost of power generation covers mainly the cost of operating power stations, such as manpower and maintenance costs, as well as the capital cost for the stations.
Meanwhile, City Gas announced earlier today that the gas tariff before GST for households will increase by 0.40 cents per kWh to 18.47 cents for the period from 1 July to 30 September 2021.
This 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.