SINGAPORE — Utilities supplier SP Group announced in a press release on Friday (Dec 29) that home electricity rates will rise by 4.1% for the first quarter of 2024. Tariffs for kilowatt-hours (kWh) will increase by 1.19 cents during the quarter ending in March, bringing the total to 29.89 cents from 28.70 cents.
The rate will be 32.58 cents per kWh once the 9% Goods and Services Tax (GST), which will take effect on January 1, is taken into consideration.
According to SP Group, the rise is the result of rising energy expenses as compared to the previous quarter. Gas rates are also scheduled to rise by 3.3% within the same time frame, according to a second statement from City Energy.
The cost per kWh will increase for households by 0.73 cents, to 23.15 cents from 22.42 cents. The rate per kWh will be 25.23 cents with GST. The current quarterly rise in gas and electricity rates is the third in a row.
The last quarter of this year had an average increase in electricity rates of 3.7%, while the third quarter saw an increase of around 1.2%. After increasing by 1.1% the previous quarter, gas rates increased by 2.3% in the October to December quarter. Three straight quarterly drops in gas and electricity rates as a result of decreased energy prices came before this.
According to the Energy Market Authority, the regulator of the gas and electricity industries, both SP Group and City Energy stated that they evaluate pricing every quarter.
The Ministry of Finance (MOF) stated in a statement on Friday that qualifying families will receive twice their normal U-Save rebates and an additional S$20 per quarter of U-Save starting in January 2024 to help offset the effects of the rising carbon tax and water prices.
Deputy Prime Minister and Finance Minister Lawrence Wong announced this S$20 per quarter on September 28 as a part of a S$1.1 billion assistance package for cost-of-living relief.
The Ministry of Finance stated: “These rebates are part of the permanent GST Voucher scheme and the Assurance Package, to help defray GST and provide cost-of-living support for lower- to middle-income households.”
The additional S$20 of U-Save will be given out every quarter between January 2024 and December 2025. For the two years, this translates to an additional S$160.
Each year, the refunds are paid out in January, April, July, and October. The fourth quarterly payment for the 2023 fiscal year will be made in January.
For families residing in one- and two-room public apartments, the U-Save offered in the 2023 fiscal year equates to around eight to ten months’ worth of utility bills, while for households residing in three- and four-room public apartments, it corresponds to approximately four to six months’ worth.
Eligible families will additionally get an additional one-time 0.5-month refund in January 2024 for Service and Conservancy Charges (S&CC). This is included in the assistance package that MOF declared on September 28.
There is nothing that eligible families need to do to take advantage of the S&CC and U-Save rebates. While the S&CC refunds will be put immediately into each household’s S&CC account with their local town councils, the U-Save rebates will be credited directly into each household’s utilities account with SP Services.
