Families in Singapore can expect reduced energy bills as tariffs for electricity and gas decrease in the first quarter of 2025.
SINGAPORE – Household energy bills are set to fall further in the first quarter of 2025, as SP Group and City Energy announced tariff reductions, citing lower energy and fuel costs as the primary reason.
From January 1 to March 31, electricity tariffs before Goods and Services Tax (GST) will drop by 3.4%, equivalent to 0.98 Singapore cents per kilowatt-hour (kWh) compared to the previous quarter. This reduction brings the pre-GST electricity tariff to 28.12 cents per kWh, down from 29.10 cents.
Impact on Households
For families living in four-room Housing and Development Board (HDB) flats, the average monthly electricity bill will decrease by S$3.58, representing a 3.4% reduction before GST. The price adjustments come as energy costs—comprising 76% of the Q1 electricity tariff—declined in comparison to the fourth quarter of 2024.
Other tariff components, such as network costs, the market support services fee, and the market administration and power system operation fee, will remain unchanged.
Gas Tariffs Also Reduced
City Energy, Singapore’s piped gas provider, announced a gas tariff reduction of 0.25 cents, bringing the pre-GST rate to 22.72 cents per kWh in Q1. After accounting for the 9% GST, the effective tariff will be 24.76 cents per kWh. The decrease reflects a fall in fuel costs compared to Q4.
Both SP Group and City Energy review tariffs quarterly under guidelines established by the Energy Market Authority (EMA). These reviews are designed to ensure that fluctuations in global energy markets are accurately reflected in local prices.
Broader Trends in Energy Pricing
The reductions align with a trend of declining energy costs seen in late 2024. Analysts note that global fuel prices, including those impacting power generation, have moderated. This has provided some relief for households amid broader inflationary pressures on other essential goods and services.
Singapore continues to make strides toward a sustainable energy future, as renewable energy adoption grows and energy efficiency measures are implemented nationwide. Lower tariffs could also encourage greater usage of energy-efficient appliances, further reducing household consumption.
Looking Ahead
With tariffs expected to remain stable for the next quarter, households and businesses alike can anticipate more predictable energy expenses moving forward. As Singapore transitions to a more sustainable energy grid, these quarterly reviews will remain crucial in balancing affordability with environmental goals.
