Electricity tariff for households in Singapore will drop for the October to December period following a five-year high in the previous quarter.

Lower cost of natural gas for electricity generation

SP Group said on Monday, Sep. 30, that electricity tariff will fall by 0.79 cent per kilowatt hour (kWh), which is an average of 3.3 per cent as compared to July to September.

The drop in tariff is due to the lower cost of natural gas for electricity generation.

In addition, SP Group said electricity tariff for households for the period Oct. 1 to Dec. 31 will drop from 24.22 cents to 23.43 cents per kWh, excluding Goods and Services Tax (GST).

This translates to a drop in average monthly electricity bill for families living in four-room Housing Board flats by S$2.84.

Rise in electricity tariff in previous quarter

Previously, electricity tariff for the months of July to September rose by 24.22 cents, or about 6.4 per cent from the preceding quarter.

It was the highest rate since the year 2014.

The increase in electricity tariff was due to the higher cost of natural gas, SP Group said.

SP Group says it reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator.

Top image via Suhaimi Abdullah/Getty Images