Electricity, gas tariffs to increase from April to June

Electricity and gas tariffs will increase from April to June amid rising fuel prices due to the ongoing Middle East conflict.

Grid operator SP Group said in a statement on Tuesday (March 31) that household electricity tariffs will increase by 2.1 per cent from the previous quarter to 29.72 cents per kilowatt-hour (kWh) after Goods and Services Tax.

This means that the average monthly electricity bill for four-room HDB flats will increase by $1.96.

Checks by AsiaOne on the Open Electricity Market’s price comparison website showed that fixed-price retail plans for residences currently ranged between 28.80 cents and 29.18 cents per kWh.

Meanwhile, City Energy said that gas tariff will increase from April to June, from 23.63 cents per kWh to 23.89 cents per kWh, attributing the hike to the Middle East war which began on Feb 28.

"The town gas tariffs in the subsequent quarters are expected to increase further as the full effect of the elevated fuel prices are incorporated," said City Energy.

Earlier in the day, the Energy Market Authority (EMA) warned that fuel prices are expected to remain "elevated" in the foreseeable future, which will lead to further and “potentially sharper” increases in electricity and gas tariffs.

"Similarly, consumers on electricity retail contracts are likely to also see an increase in prices when renewing their contracts," added EMA.

About 95 per cent of Singapore’s electricity is produced from imported natural gas, which is also the main raw material for the production of town gas, which is used in residences for cooking and heating. 

The agency said it is monitoring the hike and is working closely with the industry to ensure supply security. 

"We cannot predict how long the conflict in the Middle East will last. Households and business consumers must therefore be prepared for higher and more volatile energy costs."

[[nid:731990]]

chingshijie@asiaone.com