Electricity tariffs to dip 8% during next three months

Electricity tariffs to dip 8% during next three months

SINGAPORE - Electricity tariffs will be reduced in the first quarter of next year, as a result of lower fuel cost.

From Jan 1 to March 31, tariffs will go down by an average of 8 per cent, or 1.99 cents per kilowatt hour (kwh), energy firm SP Services said in a statement yesterday.

From Jan 1 to March 31, tariffs will go down by an average of 8 per cent, or 1.99 cents per kilowatt hour (kwh), energy firm SP Services said in a statement yesterday.

The reduction comes on the back of a drop in the cost of natural gas for electricity generation, which would have fallen by 16.4 per cent next quarter compared to the current quarter.

"As fuel cost makes up about 50 per cent of the tariff, this translates to a proportional reduction of 8 per cent in the Q1 2015 electricity tariff," SP Services said.

This means that household electricity tariffs will dip from 25.28 to 23.29 cents per kwh for the first three months of next year.

A family living in a four-room Housing Board flat, for instance, will save an average of $7.93 in their monthly electricity bill, said SP Services.

Electricity tariffs are reviewed quarterly by SP Services, based on guidelines set by the Energy Market Authority, the electricity industry regulator.

For the last quarter of this year (Oct 1 to Dec 31), the tariffs were lowered by an average of 1.6 per cent or 0.4 cent per kwh, compared to the previous quarter.


This article was first published on Dec 31, 2014.
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