Electricity tariff for Singapore households to fall by 10.4% in Q4 2026
The overall tariff before GST, including that for non-households, will fall by an average of 10.6%
Singapore households will experience a 10.4% reduction in their electricity tariff from October to December, as energy costs have decreased. The household electricity tariff will drop to 28.59 cents per kilowatt hour, from 31.91 cents per kWh in the previous quarter. SP Group, the grid operator, stated that the average monthly electricity bill for families in Housing Board four-room flats will decrease by S$12.99 before GST.
The overall electricity tariff, including non-household tariffs, will fall by an average of 10.6%, or 3.32 cents per kWh, compared to the previous quarter. City Energy, the piped town gas provider, announced that the gas tariff for households will decrease by 8.6%, from 23.48 cents per kWh to 21.45 cents per kWh from October 1 to December 31.
This decrease is due to lower fuel costs compared to the previous quarter. Both SP Group and City Energy review electricity and gas tariffs every quarter based on guidelines set by the Energy Market Authority. These tariffs can fluctuate quarter to quarter due to volatile global fuel prices driven by geopolitical factors. The tariffs are primarily determined by gas prices in the first two and a half months of the previous quarter.
Energy consultant David Chew noted that the tariff decrease aligns with his expectations, citing lower oil prices in July and August as the main driver. However, he anticipates a single-digit increase in the tariff in the first quarter of 2027 due to rising Middle East tensions. KPMG's Sharad Somani expects no further reduction in the electricity tariff unless oil prices continue to fall.
The increase in fixed-price electricity plans, which has risen from 36.6% to 38.4% since February, contributed to the tariff reduction. Less than 0.1% of households purchase electricity at wholesale prices. In the week of September 13 to 19, the Uniform Singapore Energy Price (USEP) reached its highest level so far in 2026 at S$486.21 per MWh before easing to S$461.23 per MWh.
The USEP, which measures the wholesale cost of electricity, does not directly impact the electricity tariff but does influence it. Imported natural gas makes up about 95% of Singapore's electricity generation and its price is largely tied to market prices. Between July and September, the electricity tariff increased by 17% compared to the previous quarter, while the town gas tariff rose by 7.1% due to rising natural gas prices amid the Middle East conflict.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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