Electricity tariff for S’pore households to fall by 10.4% in 4th quarter of 2026

Singapore residents will experience a 10.4% reduction in their electricity tariffs during the fourth quarter of 2026, as lower energy costs take effect from October to December. The household electricity tariff will drop to 28.59 cents per kilowatt hour, a decrease from 31.91 cents per kWh in the previous quarter. This change will result in an average monthly saving of $12.99 for families residing in Housing Board four-room flats before accounting for goods and services tax (GST).

The overall electricity tariff, including tariffs for non-households, is expected to decrease by 10.6% or 3.32 Singapore cents per kWh compared to the previous quarter. City Energy, responsible for piping town gas, announced an 8.6% reduction in gas tariffs for households, moving from 23.48 Singapore cents per kWh in the prior quarter to 21.45 Singapore cents per kWh between October and December 31.

The decrease is attributed to reduced fuel expenses compared to the preceding quarter. Both SP Group and City Energy evaluate electricity and gas tariffs quarterly based on guidelines established by the Energy Market Authority (EMA). Fluctuations in these tariffs occur every quarter due to volatile global fuel prices influenced by geopolitical factors.

The rates are determined using gas prices from the first 2.5 months of the preceding quarter, meaning fuel price changes in a quarter will only impact electricity tariffs in the subsequent quarter.

Following the outbreak of the conflict, a larger portion of households has opted for fixed-price electricity plans, locking in rates for the contract duration. The ratio of households on fixed-price plans increased from approximately 36.6% on February 1 to 38.4% on September 1. Concurrently, the percentage of households purchasing electricity from SP Group under the regulated tariff fell from 63.4% to 61.6% over the same period.

Only less than 0.1% of Singapore households purchase electricity at wholesale prices. During the week of September 13 to 19, the weekly Uniform Singapore Energy Price, a measure of the wholesale cost of electricity, reached its highest level at $486.21 per megawatt-hour since 2026. This surge in prices in the first half of 2026 coincides with the ongoing Middle East conflict, causing natural gas prices to rise dramatically.

Imported natural gas constitutes about 95% of Singapore's electricity generation, with its price largely dependent on market conditions.