Electricity tariff for S’pore households to fall by 10.4% in 4th quarter of 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 tariffs between October and December 2026, according to a statement from grid operator SP Group on September 30. This decrease in the average monthly electricity bill for families residing in Housing Board four-room flats will amount to S$12.99 before the application of goods and services tax.
The overall electricity tariff, excluding non-household tariffs, is projected to drop by 10.6%, or 3.32 Singapore cents per kilowatt-hour, compared to the previous quarter. Meanwhile, the piped town gas provider City Energy announced an 8.6% reduction in gas tariffs for households, decreasing from S$0.2348 per kWh in the previous quarter to S$0.2145 per kWh from October 1 to December 31, 2026.
These changes in tariffs are determined every quarter by SP Group and City Energy, in alignment with guidelines set by the Energy Market Authority. The fluctuation in electricity and gas tariffs is influenced by volatile global fuel prices, driven by geopolitical factors. Since the conflict's outbreak, an increasing number of households have opted for fixed-price electricity plans, which lock in the rate at which consumers purchase electricity for the duration of a contract.
The proportion of households on fixed-price plans rose from approximately 36.6% on February 1 to 38.4% on September 1, 2026. Consequently, the share of households purchasing electricity from SP Group under the regulated tariff decreased from 63.4% to 61.6% during the same period. In the week of September 13 to 19, the Uniform Singapore Energy Price, a measure of the wholesale cost of electricity, reached its highest level so far in 2026 at S$486.21 per megawatt-hour.
Between July and September, electricity tariffs increased by 17% compared to the previous quarter, while town gas tariffs rose by 7.1%, primarily due to rising prices of natural gas amidst the Middle East conflict. Approximately 95% of Singapore's electricity generation relies on imported natural gas, with its price largely tied to market prices.
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.
