Electricity tariffs for households are set to increase by 4.1% in the first quarter of 2024, according to utilities provider SP Group.
Details of the Increase
The hike amounts to 1.19 cents per kilowatt-hour (kWh) and will see tariffs rise from 28.70 cents per kWh to 29.89 cents.
After accounting for the 9% Goods and Services Tax (GST), effective from January 1, the tariff will be 32.58 cents per kWh.
SP Group attributes the increase to higher energy costs compared with the past quarter.
Consecutive Quarterly Increases
This marks the third consecutive quarterly increase in electricity tariffs, following a 3.7% average increase in the last quarter of the previous year and a 1.2% increase in the third quarter.
Gas Tariffs to Increase as Well
Concurrently, gas tariffs are also set to increase by 3.3% for the same period, as indicated by City Energy.
Households will pay 0.73 cents per kWh more, rising from 22.42 cents per kWh to 23.15 cents. With GST, the tariff will be 25.23 cents per kWh.
Review Process and Guidelines
SP Group and City Energy review tariffs every quarter based on guidelines set by the Energy Market Authority, the electricity and gas industry regulator.
Government Measures to Cushion Impact
To offset the impact of the increasing carbon tax and water price, eligible households will receive double their regular U-Save rebates. Additionally, an extra S$20 a quarter of U-Save will be provided from January 2024. This supplementary amount was part of a S$1.1 billion support package for cost-of-living relief announced by Deputy Prime Minister and Minister for Finance Lawrence Wong on September 28.
U-Save Rebates Details
The added S$20 a quarter of U-Save will be provided every quarter from January 2024 to December 2025, totaling an extra S$160 over the two years.
Rebates are disbursed in April, July, October, and January each year. On average, the U-Save provided in the 2023 financial year amounts to about eight to 10 months of utility bills for households living in one- and two-room public flats and about four to six months of utility bills for households living in three- and four-room public flats.
S&CC Rebate
For Service and Conservancy Charges (S&CC), eligible households will receive an extra one-off 0.5-month rebate in January 2024, part of the support package announced on September 28. Eligible households do not need to take any action to benefit from the U-Save and S&CC rebates.
U-Save rebates will be credited directly into households’ utilities accounts with SP Services, while the S&CC rebates will be credited directly into households’ S&CC accounts with their respective town councils.
Source: todayonline.com
