Electricity tariff for Singapore households to fall by 10.4% in 4th quarter of 2026

[SINGAPORE] Households in Singapore will see a 10.4 per cent decrease in the electricity tariff from October to December due to lower energy costs.

The household electricity tariff will be at S$0.2859 cents per kilowatt hour (kWh), down from S$0.3191 cents per kWh in the previous quarter.

Grid operator SP Group said in a statement on Wednesday (Sep 30) that the average monthly electricity bill for families living in Housing Board four-room flats will decrease by S$12.99 before goods and services tax.

The overall electricity tariff before GST, including tariffs for non-households, will decrease by an average of 10.6 per cent or S$0.0332 per kilowatt-hour, compared with the previous quarter.

In a separate statement, piped town gas provider City Energy said the gas tariff for households will decrease by 8.6 per cent, from S$0.2348 per kWh in the previous quarter to S$0.2145 per kWh from Oct 1 to Dec 31.

This is due to lower fuel costs than in the previous quarter, it said.

SP Group and City Energy review the electricity and gas tariffs every quarter based on guidelines set by regulator Energy Market Authority.

Electricity and gas tariffs can fluctuate each quarter owing to volatile global fuel prices driven by geopolitical factors.

The tariffs are determined based on gas prices in the first 2½ months of the preceding quarter. Thus, changes in fuel prices in a quarter will only show up in the electricity tariffs in the next quarter.

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Rystad Energy senior consultant David Chew told The Straits Times that the decrease in the tariff was in line with his expectations and “some welcomed good news for Singaporeans”.

“July and August saw much lower oil prices versus the previous quarter and is the main driver behind the falling electricity tariff,” he said.

However, he noted that he is expecting a single-digit increase in the tariff in the first quarter of 2027, as rising tensions in the Middle East drove oil prices higher in mid-September.

Since the outbreak of the Iran war, more households have taken up fixed-price electricity plans that lock in the rate at which consumers buy electricity for the duration of a contract.

The proportion of households on fixed-price plans rose from around 36.6 per cent on Feb 1 to 38.4 per cent on Sep 1.

The share of households buying electricity from SP Group under the regulated tariff fell from 63.4 per cent to 61.6 per cent over the same period.

Less than 0.1 per cent of Singapore households buy electricity at wholesale prices.

In the week of Sep 13 to 19, the weekly Uniform Singapore Energy Price, a measure of the wholesale cost of electricity, hit S$486.21 per megawatt-hour – the highest level so far in 2026.

Between July and September, electricity tariffs were 17 per cent higher than the previous quarter, while town gas tariffs increased by 7.1 per cent, owing to rising prices of natural gas amid the Middle East conflict. THE STRAITS TIMES