Electricity tariffs for households in Singapore are set to decline by 10.4% in the fourth quarter of 2026, reflecting lower global energy costs. From October to December, the household electricity tariff will be 28.59 cents per kilowatt-hour (kWh), down from 31.91 cents per kWh in the preceding quarter, according to a statement released by grid operator SP Group on September 30. For an average family living in a Housing Board four-room flat, this translates to a monthly bill reduction of approximately S$12.99 before goods and services tax (GST).
Overall, the electricity tariff before GST, which covers both household and non-household consumers, will fall by an average of 10.6%, or 3.32 cents per kWh, compared with the previous quarter. Meanwhile, piped town gas provider City Energy announced that the gas tariff for households will drop by 8.6%, from 23.48 cents per kWh to 21.45 cents per kWh for the same period. Both energy companies review tariffs quarterly based on fuel cost assessments supervised by the Energy Market Authority (EMA).
Tariff adjustments are influenced primarily by fluctuations in global fuel prices, which can be volatile due to geopolitical tensions. Notably, changes in fuel prices during a quarter typically affect the electricity tariffs in the following quarter because tariffs are determined by fuel prices in the first two and a half months of the preceding quarter.
David Chew, a senior consultant at Rystad Energy, noted that the tariff decrease aligns with expectations and is positive news for consumers. He attributed the decline largely to lower oil prices in July and August compared to the previous quarter. However, Chew cautioned that rising geopolitical tensions in the Middle East have pushed oil prices higher since mid-September, which could lead to a modest increase in tariffs in early 2027.
Sharad Somani, partner and head of infrastructure for Asia-Pacific at KPMG, echoed these sentiments, stating that the fourth-quarter reduction was anticipated due to the recent easing of Brent crude oil prices. He added that without a sustained downward trend in oil prices, further tariff reductions would be unlikely. Somani emphasized that the quarterly tariff adjustments illustrate how Singapore’s regulatory framework effectively mirrors global energy market dynamics.
In response to the ongoing conflict in Iran and related regional tensions, more households have opted for fixed-price electricity plans, which lock in rates for the contract duration. The proportion of such households rose from about 36.6% in early February to 38.4% by September 1. Correspondingly, the share of households purchasing electricity from SP Group under the regulated tariff declined from 63.4% to 61.6% over the same timeframe. Less than 0.8% of households acquire electricity at wholesale prices.
Despite the quarterly tariff decrease, wholesale electricity costs remain elevated. In mid-September, the weekly Uniform Singapore Energy Price (USEP)—a benchmark for wholesale electricity costs—reached $486.21 per megawatt-hour (MWh), the highest in 2026, before easing slightly to $461.23 per MWh the following week. While the USEP does not directly affect retail tariffs, fluctuations in fuel costs that influence the USEP also impact tariff revisions.
Singapore’s electricity generation relies heavily on imported natural gas, accounting for about 95% of its power supply. The price of this gas largely tracks international market rates. Between July and September, the electricity tariff increased by 17% compared to the previous quarter, with the town gas tariff rising 7.1%, driven mostly by higher natural gas prices amid the Middle East conflict. The latest tariff reductions reflect a partial easing of these costs.