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SINGAPORE: Electricity tariffs have hit a record high in Singapore, as natural gas prices, driven skyward by the Middle East conflict, have pushed up the cost of producing electricity.<\/p>\n
For the July to September quarter, the household electricity tariff will rise by 17 per cent, or 4.64 cents per kilowatt-hour before Goods and Services Tax (GST), adding about S$17 (US$13.18) a month to the average electricity bill for a four-room HDB flat.<\/p>\n
Earlier this year, Manpower Minister and Minister-in-charge of Energy Tan See Leng warned that the July-September tariff would see “significantly sharper increases” because of the way Singapore’s regulated tariff is calculated. He added that households wanting to hedge against higher prices could switch to a fixed-price contract.<\/p>\n
However, the Energy Market Authority (EMA) said on Tuesday (June 30) that if the Middle East situation improves, lower fuel prices could lead to lower electricity tariffs in the fourth quarter.<\/p>\n
That leaves households that have yet to lock in a fixed-price plan with a dilemma: Should they sign up for one now, or wait to see if electricity tariffs ease later this year?<\/p>\n
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Will electricity tariffs come down?<\/strong><\/p>\n Possibly, but not immediately.<\/p>\n Singapore generates about 95 per cent of its electricity using imported natural gas, leaving local electricity prices highly vulnerable to supply shocks in global fuel markets.<\/p>\n Grid operator SP Group reviews the regulated electricity tariff every quarter, based on the gas prices in the first 2.5 months of the previous quarter, according to EMA.\u00a0<\/p>\n For example, gas prices between April and mid-June 2026, when global fuel prices were elevated, are used to set the tariffs for July to September 2026.\u00a0<\/p>\n This means that changes in fuel prices in the third quarter will only show up in the electricity tariffs in the fourth quarter.\u00a0<\/p>\n \u201cThe record high electricity tariffs are at a critical watershed now – much will depend on the still unfolding scenario on the Middle East oil and gas situation,\u201d said Professor Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore (NUS) Business School.<\/p>\n \u201cEven when there may be truces for the current periods, the setting can be volatile,\u201d he said.<\/p>\n \u201cIt is likely that the fuel and electricity prices will remain high, if not rise higher, before they can subside if the situation gets better\u201d<\/p>\n Dr Sung Jinseok, a Research Fellow at the NUS Energy Studies Institute, said that while electricity prices may fall in the fourth quarter if the geopolitical situation in the Middle East stabilises, the fall is more likely to be insignificant.<\/p>\n \u201cIn many countries, Q3 is a peak demand season, and there are still a lot of uncertainties in the situation in the Middle East,\u201d he said.<\/p>\n \u201cA return to the pre-conflict price level can happen in 2027, assuming the situation will be normalised in the Gulf region.\u201d<\/p>\n<\/div>\n SINGAPORE: Electricity tariffs have hit a record high in Singapore, as natural gas prices, driven skyward by the Middle East conflict, have pushed up the…<\/p>\n","protected":false},"author":1,"featured_media":65968,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/dam.mediacorp.sg\/image\/upload\/s--auZ6180q--\/c_fill,g_auto,h_676,w_1200\/fl_relative,g_south_east,l_mediacorp:cna:watermark:2021-08:cna,w_0.1\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/07\/03\/20211019_ili_electricity_generics-5.jpg?itok=-gqjtM5X","fifu_image_alt":"","footnotes":""},"categories":[2],"tags":[15,711,1339,1950,24775,175,1952,3309,2640],"class_list":["post-65967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-news-sg-global","tag-cna","tag-electricity","tag-explains","tag-high","tag-lock","tag-plan","tag-record","tag-tariffs","tag-wait","wpcat-2-id"],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/65967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=65967"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/65967\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/65968"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=65967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=65967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=65967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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