Singapore households to get 10.4pc electricity tariff cut from October as fuel costs ease

The reduction will apply from October 1 to December 31, while the overall electricity tariff before GST, including rates for non-households, will decrease by an average of 10.6 per cent or 3.32 Singapore cents per kWh from the previous quarter, SP Group said. — AFP pic

By Malay Mail

First Published: Wednesday, 30 Sep 2026 12:53 PM MYT

SINGAPORE, Sept 30 — Singapore households will see their electricity tariffs fall 10.4 per cent in the fourth quarter, reversing part of the sharp increase recorded in the previous three months as energy costs ease.

The household rate will drop to 28.59 Singapore cents per kilowatt-hour (kWh) from 31.91 cents, with The Straits Times reporting that the average monthly electricity bill for a family living in a four-room Housing Board flat will fall by S$12.99 (RM41.50) before goods and services tax (GST).

The reduction will apply from October 1 to December 31, while the overall electricity tariff before GST, including rates for non-households, will decrease by an average of 10.6 per cent or 3.32 Singapore cents per kWh from the previous quarter, SP Group said.

The city-state’s piped town gas tariff will also fall during the period, with City Energy lowering the household rate by 8.6 per cent from 23.48 cents to 21.45 cents per kWh.

City Energy attributed the reduction to lower fuel costs compared with the previous quarter.

The latest cuts follow a 17 per cent increase in electricity tariffs between July and September, while town gas rates rose 7.1 per cent as natural gas prices climbed amid the Middle East conflict.

SP Group and City Energy review their respective tariffs every quarter according to guidelines set by the Energy Market Authority, with rates based on gas prices during the first two-and-a-half months of the preceding quarter.

As a result, movements in global fuel prices are reflected in electricity tariffs only in the following quarter, while geopolitical developments can contribute to fluctuations in energy costs.

Imported natural gas supplies about 95 per cent of Singapore’s electricity generation, with its price largely linked to market prices.

Against this backdrop, more households have opted for fixed-price electricity plans that lock in their rates for the duration of their contracts, with the proportion rising from about 36.6 per cent on Feb 1 to 38.4 per cent on Sept 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, while less than 0.1 per cent purchase electricity at wholesale prices.

Wholesale electricity costs nevertheless reached a 2026 high of S$486.21 per megawatt-hour in the week of Sept 13 to 19, based on the Uniform Singapore Energy Price.