Why are electricity tariffs rising?

Why are electricity tariffs rising?

The increase in electricity tariffs for this quarter is mainly due to the higher cost of natural gas for electricity generation.

04 Jul 2016

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Electricity tariffs are revised every quarter to reflect changes in the costs of producing and delivering electricity. These tariff revisions are reviewed and approved by the Energy Market Authority (EMA) to ensure that electricity consumers are not overcharged.

The increase in electricity tariffs for this quarter is mainly due to the higher cost of natural gas for electricity generation, which rose by 26 per cent, compared to second quarter of 2016.

Despite the increase, the 3Q2016 tariff is still lower than the preceding quarters in 1Q2016 and 3Q2015.

Quarterly household data on electricity tariffs

The Government assists Singaporean households with their living expenses via the GST Voucher – Utilities Save (U-Save) rebate. The schedule for the U-Save rebates is as below.

U-Save

Source: Ministry of Trade & Industry

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